Keurig Dr Pepper beats earnings for a fifth straight quarter ahead of split
As seen on the 24/7 Wall St. homepage on November 3, 2026.
JDE Peet's planned split into separate beverage and coffee companies stayed on track, and management reaffirmed full-year net sales guidance of $25.9 billion to $26.4 billion. Adjusted earnings beat expectations for a fifth straight quarter.
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Keurig Dr Pepper posted adjusted EPS of $0.66 for Q3 2026, beating expectations and extending its streak to five consecutive quarters. Revenue also came in ahead of estimates.
Legacy KDP net sales grew 8.6%, with U.S. Refreshment Beverages leading and JDE Peet's, whose acquisition closed April 1, adding incremental net sales.
U.S. Coffee gained a $99 million benefit from tariff refunds, lifting coffee adjusted operating income and offsetting unfavorable pricing in the segment. Free cash flow nearly doubled year over year.
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Investors are focused on the planned split of Keurig Dr Pepper into a standalone beverage company and a separate Global Coffee Co. Management said the separation remains on track and reaffirmed full-year net sales guidance, with low-double-digit constant currency adjusted EPS growth expected.
CEO Tim Cofer said the company delivered third-quarter results while stepping up investment behind brands and capabilities to position the two future companies for success. The beat streak, reaffirmed guidance, and an on-schedule separation give investors a clean picture heading into the final stretch of 2026. A pro forma management leverage ratio of 4.1x remains the risk to monitor.
Sources
Mentioned: KDP