Keurig Dr Pepper Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.81%.
Did KDP Beat Earnings? Q3 2025 Results
Keurig Dr Pepper capped the third quarter of 2025 with results that beat expectations on both the top and bottom lines, as the beverage giant posted adjusted diluted EPS of $0.54, edging past the $0.54 consensus estimate by 0.45%, while revenue climbed 10.7% year-over-year to $4.31 billion, ahead of the $4.16 billion analysts had forecast. The standout driver was the U.S. Refreshment Beverages segment, where net sales surged 14.4% to $2.73 billion, fueled in part by the GHOST acquisition contributing 4.4 percentage points to volume and mix growth across energy and sports hydration categories. GAAP net income rose 7.5% to $662 million. Looking ahead, KDP lifted its full-year 2025 constant currency net sales growth outlook to a high-single-digit range, up from mid-single-digit previously, while reaffirming high-single-digit adjusted EPS growth, with foreign currency translation expected to represent roughly a half percentage point headwind. The company also continued preparations for its planned acquisition of JDE Peet's and subsequent separation into two pure-play businesses, a restructuring projected to unlock approximately $400 million in total cost savings.
- Strong volume/mix growth of 6.4% and favorable net price realization of 4.2%
- GHOST acquisition contributed 4.4 percentage points to volume/mix growth
- Market share gains in carbonated soft drinks, energy, and sports hydration
- K-Cup pricing actions to combat coffee inflation
- Productivity savings offsetting inflationary pressures
- Mineral water growth in Mexico and single serve coffee growth in Canada
“We are pleased with our third quarter results, which demonstrated robust growth in U.S. Refreshment Beverages and encouraging sequential progress in U.S. Coffee. Strong innovation and in-market execution drove market share gains across key categories, with sales momentum, along with disciplined actions to offset inflationary pressures, contributing to solid earnings and free cash flow growth. We are focused on sustaining our base business strength while also thoughtfully preparing for the transformation ahead as we first acquire and integrate JDE Peet's and subsequently separate into two, advantaged pure-play companies.”
Keurig Dr Pepper CEO, on the earnings call
Forward Guidance & Outlook
KDP raised its fiscal 2025 constant currency net sales growth outlook to a high-single-digit range, revised upward from mid-single-digit growth previously. The company reaffirmed its adjusted diluted EPS growth outlook in the high-single-digit range. At current exchange rates, foreign currency translation is expected to represent approximately a half percentage point headwind to both top-line and bottom-line full year growth.
KDP YoY Financials
KDP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.