KDP · Keurig Dr Pepper Inc.

Keurig Dr Pepper's Q1 2026 results showed robust top-line growth with consolidated net sales reaching $3.98 billion, up 9.4% on a GAAP basis and 8.1% on a constant currency basis, propelled by 5.5% favorable net price realization and 2.6% volume/mix expansion. The U.S. Refreshment Beverages segment led performance, posting 11.9% net sales growth to $2.6 billion, fueled by strong 7.2% volume/mix gains and 4.7% pricing, alongside adjusted operating income growth of 9.8% to $742 million or 28.5% of sales. This momentum offset challenges elsewhere, including a 2.3% decline in U.S. Coffee net sales to $857 million due to an 8.2% volume/mix drop despite 5.9% pricing gains, and softer International results with constant currency net sales up 8.5% but adjusted operating income down 15.1% from cost pressures and volume declines.

Adjusted operating income dipped 1.9% to $838 million (21.1% margin), pressured by inflation, higher SG&A including marketing, though mitigated by sales growth and productivity. Adjusted diluted EPS fell 7.1% to $0.39, reflecting operating declines and lapping a prior-year investment gain. CEO Tim Cofer highlighted strong cold beverage momentum, coffee results in line with expectations amid elevated costs, and the transformative completion of the JDE Peet’s acquisition on April 1, positioning KDP for global coffee leadership via two pure-play entities.

The company reaffirmed its 2026 constant currency guidance, targeting net sales of $25.9-$26.4 billion (4-6% legacy growth plus JDE Peet’s contribution) and low-double-digit adjusted EPS growth, with FX providing a modest tailwind. Operating cash flow of $281 million and free cash flow of $184 million supported liquidity amid acquisition integration risks.