Keurig Dr Pepper sales jump 75.6% to US$7.31B in Q2 2026

USA – Keurig Dr Pepper (KDP) reported a 75.6% increase in sales to US$7.31 billion for the period ended June 30, 2026, beating analysts’ average forecast of US$7.24 billion, according to LSEG data. 

Adjusted diluted earnings per share (EPS) rose 16.3% to 57 cents, above the 54-cent analyst estimate, as growth in soft drinks and energy drinks supported the company’s second-quarter performance. 

The U.S. Refreshment Beverages segment was the strongest performer, with revenue increasing 10% to US$2.9 billion. Volume and mix rose 6.5%, while pricing increased 3.5%. Adjusted operating income for the segment climbed 11.9%. 

Dr Pepper Zero Sugar led the performance, with retail sales increasing 30%. KDP’s energy portfolio also reached a 9% market share, with management highlighting opportunities among female consumers and in channels beyond convenience stores. 

The U.S. Coffee segment remained under pressure. Revenue fell 3.2% to US$918 million as lower volumes more than offset pricing gains. Adjusted operating income declined 24.7%, reflecting inflationary pressures, weaker volume and higher marketing spending. 

Management said a hedging strategy contributed to elevated green coffee costs and tariffs flowing through the profit-and-loss statement. The company expects the segment to “turn a corner” in the second half as lower-cost inventory and easing tariff impacts improve costs. 

KDP International delivered stronger results, with revenue rising 19.6% to US$664 million, or 12.4% on a constant-currency basis. Growth was supported by pricing and volume gains, including a recovery in Mexico as the impact of a beverage tax eased. 

The newly integrated JDE Peet’s business contributed US$2.8 billion in revenue during the quarter. 

CEO Tim Cofer said the company delivered strong results while making progress on its transformation programme. 

“We delivered another strong quarter of results, with Q2 EPS exceeding our expectations. U.S. Refreshment Beverages generated double-digit top- and bottom-line growth, KDP International sequentially improved as planned, and our combined coffee platform delivered solid performance,” Cofer said. 

He added that KDP had made progress on integration and separation work, including initial cost synergies, organisational readiness and free cash flow generation. 

“At the midpoint of the year, we remain on track to achieve our 2026 financial and transformation commitments while preparing for a successful separation in early 2027,” Cofer said. 

KDP also said it generated robust free cash flow during the quarter, supporting balance sheet deleveraging as it continues preparations for the planned separation of its businesses in early 2027 as planned. 

Following the results, KDP confirmed its full-year 2026 outlook, targeting net sales of US$25.9 billion to US$26.4 billion and adjusted EPS growth in the low double-digit range. 

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