Keurig Dr Pepper Inc: Solid 2Q26 Beat on Top-Line/EPS; Reiterated FY26 Guide

Research evidence excerpt

J P M O R G A N

North America Equity Research

06 August 2026

Keurig Dr Pepper Inc

Solid 2Q26 Beat on Top-Line/EPS; Reiterated FY26

Guide

Our Take. Solid Results: The earnings beat led by strong top-line and gross

margin performance, which, coupled with its guidance reiteration should be well

received for a stock that has been gaining more investor interest of late, but has

underperformed over the past month (L1M KDP -3.2% vs. S5CONS +1.0%).

USRB again showed stronger-than-expected momentum with upside driven by

volume/mix and International strengthened sequentially, while good sales growth

at JDEP paired with softer-than-expected U.S. Coffee performance (albeit some

impact from change in reporting for Peet’s K-cup pods). The company also remains

on track with planned integration/separation work with planned separation in early

2027.

2Q26 KPIs. Keurig Dr Pepper (KDP, Overweight) reported 2Q26 adjusted

EPS of $0.57, which beat JPMe/consensus $0.53/$0.53, and on a YOY growth

basis was +16.2% vs. JPMe/consensus +8.3%/+7.1%. Relative to JPMe,

upside was driven by better-than-expected top line (+$0.01) and gross margin

(+$0.04 vs. JPMe), which was partially offset by below-the-line items (net $0.01 vs. JPMe). Constant currency net sales growth of +7.3% came in well

ahead of JPMe/Consensus Metrix (CM) +6.1%/+4.6% with volume/mix

+3.1% (vs. JPMe/CM +1.6%/+1.0%) and pricing +4.2% (vs. JPMe/CM

+4.5%/+3.6%). JDEP contributed $2.80B revenue (vs. JPMe/CM $2.71B/

$2.80B), or +67.3% to the top-line (vs. JPMe/CM +65.1%/+67.4%). Gross

margins of 46.5% (-852 bps YOY) bracketed JPMe/consensus 45.4%/47.5%

while operating expense ratio of 26.2% (-405 bps YOY) compared to JPMe/

consensus 25.9%/28.3%. As such, EBIT margins of 20.2% (-447 bps YOY)

compared to JPMe/consensus 19.5%/19.1%.

KDP Reaffirmed 2026 Guidance. KDP reaffirmed 2026 guidance including

standalone constant-currency net sales growth of +4-6% (vs. JPMe/CM

+6.1%/+5.3% into today) and constant-currency EPS growth of +4-6%. The

company continues to expect a +1% FX tailwind to the top and bottom lines.

As such, guidance implies standalone comparable EPS growth of about +57%.…