The reaffirmed full-year guidance and strong Q3 performance, particularly in U.S. Refreshment Beverages, suggest KDP is on track for its planned separation in early 2027. The slight downward revision to legacy KDP EPS growth (3-5% vs prior 4-6%) due to U.S. Coffee warrants monitoring in the next quarter.
Price Chart
Executive Summary
KDP reported Q3 2026 results with GAAP diluted EPS of $0.59 and adjusted diluted EPS of $0.66, exceeding the consensus estimate of $0.62. Net sales rose 70.6% to $7.34 billion, driven by the JDE Peets acquisition and 8.6% organic growth in legacy KDP. The company reaffirmed its full-year 2026 guidance for net sales of $25.9-$26.4 billion and low-double-digit constant currency adjusted EPS growth.
Key Financial Metrics
Key Facts
- Q3 2026 GAAP diluted EPS of $0.59, up 20.4% YoY; adjusted diluted EPS of $0.66, up 22.2% YoY
- Q3 2026 net sales of $7.34 billion, up 70.6% YoY; legacy KDP organic growth of 8.6%
- Adjusted operating income of $1.67 billion, up 52.5% YoY; adjusted operating margin of 22.7%
- U.S. Refreshment Beverages net sales up 10.9% to $3.0 billion; U.S. Coffee net sales up 2.7% to $1.0 billion
- JDE Peets contributed $2.6 billion in net sales and $480 million in adjusted operating income
- Operating cash flow of $1.04 billion and free cash flow of $1.01 billion in Q3
- Full-year 2026 guidance reaffirmed: net sales $25.9-$26.4 billion, low-double-digit constant currency adjusted EPS growth
- Legacy KDP constant currency EPS growth guidance revised to 3-5% from prior 4-6% due to U.S. Coffee expectations
Financial Impact
Adjusted EPS beat consensus by $0.04 (6.5%); Q3 net sales of $7.34B vs consensus $7.33B; adjusted operating income up 52.5% YoY
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| U.S. Refreshment Beverages | $3.0B | +10.9% |
| U.S. Coffee | $1.0B | +2.7% |
| KDP International | $644.0M | +11.0% |
| JDE Peet's | $2.6B | Not reported |
Risk Factors
- Integration and separation costs related to JDE Peets acquisition and planned spin-off
- U.S. Coffee segment facing net price realization headwinds and inflationary pressures
- High leverage (pro forma management leverage ratio of 4.1x) and interest expense burden
- Foreign currency translation headwinds, particularly in KDP International segment
- Potential tariff impacts and geopolitical uncertainties
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001418135-26-000064 |
| Document: kdp-20261103.htm | 0001418135-26-000064 |
| Document: 0001418135-26-000064-index-headers.html | 0001418135-26-000064 |
| Document: 0001418135-26-000064-index.html | 0001418135-26-000064 |
| Document: 0001418135-26-000064.txt | 0001418135-26-000064 |
| 8-K Data (Synthetic) | 0001418135-26-000064 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 3, 2026 1d ago | 8-K | No price | awaiting T+1 | awaiting T+1 | No price |
Nov 3, 2026 1d ago | Press Release | $34.74 $36.79 | ▲ +5.90% | ▲ +4.25% | $36.79 (+5.90%) |
Oct 30, 2026 5d ago | Institutional Cluster | $35.84 $36.82 | ▲ +2.73% | ▲ +3.21% | $36.79 (+2.65%) |
Oct 1, 2026 4w ago | Press Release | $30.37 $30.89 | ▲ +1.71% | ▲ +1.04% | $36.79 (+21.14%) |
Oct 1, 2026 4w ago | 8-K | $30.69 $30.37 | ▼ −1.04% | ▼ −1.78% | $36.79 (+19.88%) |
Sep 16, 2026 7w ago | 8-K | $31.43 $30.96 | ▼ −1.50% | ▼ −1.38% | $36.79 (+17.05%) |
Sep 10, 2026 7w ago | Insider Cluster | $31.39 $31.58 | ▲ +0.61% | ▲ +1.05% | $36.79 (+17.20%) |
Sep 4, 2026 8w ago | Court Ruling | $32.32 $31.85 | ▼ −1.44% | ▼ −0.98% | $36.79 (+13.85%) |
Sep 1, 2026 9w ago | 8-K | $31.89 $32.59 | ▲ +2.19% | ▲ +1.75% | $36.79 (+15.37%) |
Aug 27, 2026 9w ago | Insider Buy | $32.18 $31.86 | ▼ −0.99% | ▼ −0.70% | $36.79 (+14.33%) |
US Market Status
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