The beat was driven by strong organic growth in U.S. Refreshment Beverages and the JDE Peet's contribution, with guidance reaffirmed. Monitor the planned separation of coffee and beverage portfolios for potential value unlock, as well as integration cost trends and debt leverage (pro forma management leverage ratio of 4.1x).
How the stock moved after the report
BULLISH VIEWSTOCK ABOVE ENTRY AT T+1- T+0 · Nov 3 $34.74entry
- T+1 · 16h ago +5.90%α +4.25% · $36.79
- T+5 · in 5d Pending
- T+20 · in 27d Pending
- T+60 · in 3mo Pending
Price Chart
How similar events traded
Executive Summary
KDP reported Q3 2026 adjusted EPS of $0.66, above the $0.62 consensus, and net sales of $7.34 billion, slightly above the $7.33 billion estimate. Revenue growth was driven by the JDE Peet's acquisition and 8.6% organic growth in legacy KDP, while the company reaffirmed its full-year guidance for net sales of $25.9-$26.4 billion and low-double-digit adjusted EPS growth.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS of $0.66, up 22.2% YoY, beat the $0.62 consensus by 6.5%.
- Net sales of $7.34 billion, up 70.6% YoY, slightly above the $7.33 billion consensus.
- Legacy KDP net sales (excluding JDE Peet's) grew 8.6%, with volume/mix up 6.5% and price realization up 2.1%.
- Adjusted operating income rose 52.5% to $1.67 billion, with adjusted operating margin of 22.7%.
- Free cash flow was $1.01 billion in Q3 and $1.91 billion year-to-date.
- Full-year 2026 guidance reaffirmed: net sales $25.9-$26.4 billion, constant-currency adjusted EPS growth in low-double-digits.
- JDE Peet's contributed $2.65 billion in Q3 net sales and is expected to add 7-8 percentage points to full-year EPS growth.
Financial Impact
Adjusted EPS beat consensus by $0.04 (6.5%); revenue beat by ~$10M; guidance maintained.
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 of JDE Peet's and planned separation of Global Coffee Co. create execution risk and management distraction.
- Pro forma net debt of $27.9 billion (4.1x EBITDA) leaves limited balance sheet flexibility.
- U.S. Coffee segment saw negative price realization (-4.2%), partially offset by tariff refunds and volume growth.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302927330 |
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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