Keurig Dr Pepper Sees Q4 Sales Up 10.5% and EPS Beat as Cost Pressures Linger
Keurig Dr Pepper’s Q4 net sales rose 10.5% to $4.5 billion, with adjusted EPS of $0.60 beating estimates by $0.01 despite margin headwinds. Management warned cost pressures will persist into early 2026, guiding 2026 net sales of $25.9–$26.4 billion and EPS of $2.13–$2.17.
1. Q4 Financial Results
Keurig Dr Pepper reported Q4 2025 net sales of $4.499 billion, up 10.5% year-over-year, driven by net price realization of 6% and volume/mix gains of 3.9%. Adjusted EPS was $0.60, topping estimates by $0.01, while adjusted operating income rose 4.8% to $1.19 billion, representing a 26.5% margin.
2. Segment Performance
U.S. Refreshment Beverages net sales climbed 11.5% to $2.7 billion, U.S. Coffee sales increased 3.9% to $1.2 billion, and international net sales jumped 21.0% to $604 million. The GHOST acquisition contributed 3.6 percentage points to volume and mix expansion.
3. 2026 Guidance & Cost Outlook
Management cautioned that inflationary and cost pressures will persist into early 2026, guiding full-year net sales of $25.9 to $26.4 billion and adjusted EPS of $2.13 to $2.17. First-quarter EPS is expected at $0.36 to $0.37 versus $0.42 a year earlier.