01—Abstract
Summary
Summary of the 8-K filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Keurig Dr Pepper Inc. (KDP) reported second-quarter 2026 results on August 6, 2026, and reaffirmed its full-year 2026 guidance, as stated in Exhibit 99.1.
GAAP net sales rose 75.6% to $7.31 billiona in Q2, while legacy KDP net sales (excluding the JDE Peet's contribution) increased 7.3%, driven by favorable net price realization of 4.2% and volume/mix growth of 3.1%. The JDE Peet's acquisition, which closed April 1, drove most of the growth. GAAP diluted EPS was $0.04 versus $0.40 a year earlier, primarily due to acquisition and integration-related costs and an inventory step-up, while Adjusted diluted EPS increased 16.3% to $0.57.
For 2026, the company expects net sales of $25.9 to $26.4 billionb and constant currency Adjusted diluted EPS growth in a low-double-digit range, comprised of 4% to 6% growth for the legacy business plus JDE Peet's contribution. The company expects to end 2026 with a pro-forma management leverage ratio of approximately 4.1x. The filing also reports Q2 operating cash flow of $895 million and free cash flow of $714 million, and it notes that the balance sheet at June 30, 2026 reflects $4.5 billion of convertible preferred stock and $4.2 billion of non-controlling interests.
Management stated that it remains on track for its 2026 commitments and is preparing for a separation of its beverage and coffee portfolios in early 2027. Investors should weigh the strong top-line growth from the acquisition against significantly higher leverage, elevated integration and separation costs, and the GAAP earnings decline.
02—Key points
Key Highlights
- Q2 2026 GAAP net sales increased 75.6% to $7.31 billion; legacy KDP net sales rose 7.3%, with net price realization of 4.2% and volume/mix growth of 3.1%.
- Q2 GAAP diluted EPS was $0.04 versus $0.40 a year earlier; Adjusted diluted EPS increased 16.3% to $0.57.
- U.S. Refreshment Beverages net sales rose 10.0% to $2.9 billion, with Adjusted operating margin of 29.9%.
- U.S. Coffee net sales declined 3.2% to $918 million, with volume/mix down 8.2%, partly offset by net price realization of 5.0%.
- JDE Peet's contributed $2.8 billion of Q2 net sales and $414 million of Adjusted operating income, with the acquisition closing April 1.
- 2026 guidance reaffirmed: net sales of $25.9 to $26.4 billion and low-double-digit constant currency Adjusted diluted EPS growth.
- Q2 operating cash flow was $895 million and free cash flow was $714 million; year-end pro-forma management leverage ratio is targeted at approximately 4.1x.
03—Questions
Frequently Asked Questions
How did Keurig Dr Pepper perform in the second quarter of 2026?
GAAP net sales rose 75.6% to $7.31 billion, and GAAP net income attributable to common shareholders fell 89.0% to $60 million, or $0.04 per diluted share. Adjusted diluted EPS increased 16.3% to $0.57, driven by higher Adjusted operating income.
What is driving the difference between GAAP and Adjusted results?
The filing attributes the GAAP decline mainly to items affecting comparability, including acquisition and integration-related costs for JDE Peet's, which totaled $318 million of operating expense in Q2, and a $314 million inventory step-up.
What is the company's 2026 outlook?
KDP reaffirmed 2026 net sales of $25.9 to $26.4 billion and constant currency Adjusted diluted EPS growth in a low-double-digit range. Foreign currency is forecast to be about a one percentage point tailwind.
How is the company's leverage trending?
The pro-forma management leverage ratio was 4.4x at June 30, 2026, and the company continues to target approximately 4.1x at year-end 2026.
What separation plans does the company mention?
Management said it is preparing for a successful separation in early 2027 and is on track with its integration and separation work, including initial cost synergies.
04—Continue