Keurig Dr Pepper Q2 2026: adjusted EPS $0.57 as JDE Peet's doubles sales
Keurig Dr Pepper's second quarter was two quarters in one: net sales rose 75.6% to $7.31 billion because JDE Peet's closed on April 1, while GAAP earnings fell 89.0% on deal costs. Judge the business on adjusted EPS of $0.57, which beat the $0.5426 consensus, not on GAAP EPS of $0.04. Our view is Neutral.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS fell 90.0% to $0.04, and GAAP net income attributable to common shareholders dropped 89.0% to $60 million, mainly because of $314 million of inventory step-up and $318 million of JDE Peet's acquisition, integration and financing costs. Adjusted diluted EPS rose 16.3% to $0.57, ahead of the $0.5426 consensus. That $0.53 gap between the two EPS numbers is the whole story of this quarter's optics.
Net sales rose 75.6% to $7.31 billion, but $2.8 billion of that came from JDE Peet's, which only joined the company on April 1. Excluding the acquisition, legacy KDP net sales grew 7.3%, split between 4.2% net price realization and 3.1% volume/mix growth. U.S. Refreshment Beverages rose 10.0% to $2.9 billion and KDP International rose 19.6% to $664 million, while U.S. Coffee fell 3.2% to $918 million.
The company reaffirmed 2026 net sales of $25.9-$26.4 billion, a $26.15 billion midpoint, plus low-double-digit constant currency adjusted EPS growth. That bundles 4-6% sales and EPS growth for the legacy business with the incremental JDE Peet's contribution and a roughly one percentage point currency tailwind. It also still targets a 4.1x pro-forma leverage ratio at year-end.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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