01—Abstract
Summary
Summary of the 8-K filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Keurig Dr Pepper Inc. (KDP) reported first-quarter 2026 results on April 23, 2026, in a press release furnished as Exhibit 99.1 under Item 2.02.
Net sales rose 9.4% to $3.98 billiona (8.1% on a constant currency basis), driven by favorable net price realization of 5.5% and volume/mix growth of 2.6%. GAAP net income fell 47.8% to $270 million, or $0.20 per diluted share, largely due to transaction and acquisition-related costs. Adjusted diluted EPS decreased 7.1% to $0.39, and adjusted operating income declined 1.9% to $838 million, or 21.1% of net sales, reflecting inflationary pressures and higher SG&A, including marketing.
Segment results were mixed. U.S. Refreshment Beverages net sales grew 11.9% to $2.6 billionb with adjusted operating income up 9.8%, while U.S. Coffee net sales fell 2.3% to $857 million and adjusted operating income dropped 21.3%, with volume/mix down 8.2%. International net sales rose 19.5% to $520 million (8.5% constant currency), though adjusted operating income declined 15.1% on a constant currency basis.
The company completed its acquisition of JDE Peet's on April 1, 2026, and reaffirmed 2026 guidance: net sales of $25.9c-$26.4 billion and constant currency Adjusted diluted EPS growth in a low-double-digit range. Balance sheet changes were significant: total assets rose to $73.1 billion from $55.5 billion at year-end 2025, and long-term obligations increased to $20.9 billion from $13.0 billion. Management leverage ratio was 1.5 as of March 31, 2026, and operating cash flow was $281 million with free cash flow of $184 million.
02—Key points
Key Highlights
- Net sales increased 9.4% to $3.98 billion; constant currency growth was 8.1%, led by 5.5% net price realization and 2.6% volume/mix growth.
- GAAP diluted EPS was $0.20, down 47.4%, while Adjusted diluted EPS was $0.39, down 7.1%.
- U.S. Refreshment Beverages was the standout segment, with net sales up 11.9% to $2.6 billion and adjusted operating income up 9.8%.
- U.S. Coffee net sales fell 2.3% to $857 million, with volume/mix down 8.2% and adjusted operating income down 21.3%.
- Acquisition of JDE Peet's was completed on April 1, 2026; the company reaffirmed 2026 net sales guidance of $25.9-$26.4 billion and low-double-digit constant currency Adjusted EPS growth.
- Total assets rose to $73.1 billion and long-term obligations to $20.9 billion from $13.0 billion at December 31, 2025; management leverage ratio was 1.5.
- Free cash flow was $184 million in the quarter, compared with $102 million in the prior-year quarter.
03—Questions
Frequently Asked Questions
How did Keurig Dr Pepper perform in the first quarter of 2026?
Net sales rose 9.4% to $3.98 billion, or 8.1% on a constant currency basis. GAAP net income decreased 47.8% to $270 million, while Adjusted net income decreased 6.9% to $534 million. Adjusted operating income declined 1.9% to $838 million.
Why did GAAP earnings fall more sharply than adjusted earnings?
The filing attributes the GAAP decline primarily to transaction and acquisition-related costs, which are excluded from adjusted results. Acquisition, integration, and financing costs for the JDE Peet's acquisition and spin of Global Coffee Co. totaled $88 million at the operating income level in the quarter.
Which segment drove growth, and which lagged?
U.S. Refreshment Beverages drove growth, with net sales up 11.9% to $2.6 billion. U.S. Coffee lagged, with net sales down 2.3% to $857 million and volume/mix down 8.2%, and adjusted operating income fell 21.3% to $199 million.
What is the company's 2026 outlook?
KDP reaffirmed 2026 guidance of net sales of $25.9-$26.4 billion and constant currency Adjusted diluted EPS growth in a low-double-digit range. The guidance includes 4-6% constant currency net sales growth and 4-6% constant currency Adjusted diluted EPS growth for the legacy business, plus the contribution from JDE Peet's.
How did the JDE Peet's acquisition affect the balance sheet?
Total assets increased to $73.1 billion from $55.5 billion at December 31, 2025. Long-term obligations rose to $20.9 billion from $13.0 billion, and non-controlling interest of $3.9 billion and convertible preferred stock of $4.4 billion were recorded at March 31, 2026. The management leverage ratio was 1.5 at quarter end.
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