Keurig Dr Pepper Inc. (NASDAQ:KDP) shares rose more than 2% in premarket trading after the beverage maker reported fourth-quarter results that topped analyst expectations and issued stronger-than-anticipated guidance for fiscal 2026.
The company posted adjusted earnings per share of $0.60 for the quarter, exceeding forecasts by $0.01, while revenue reached $4.5 billion, ahead of the $4.36 billion consensus estimate.
Keurig Dr Pepper’s outlook for 2026 also surpassed Wall Street projections, supported in part by the expected acquisition of JDE Peet’s, which is anticipated to close in early April.
Fourth-quarter revenue increased 10.5% year over year, driven primarily by continued strength in the U.S. Refreshment Beverages division. CEO Tim Cofer said, “2025 was another strong year for KDP. We delivered on our guidance, navigated the dynamic operating environment with agility, and executed well in the marketplace with winning innovation and robust commercial activation of our brands.”
For fiscal 2026, the company forecasts revenue in the range of $25.9 billion to $26.4 billion, well above analyst consensus estimates of $17.196 billion. The midpoint of $26.15 billion reflects the anticipated contribution from the JDE Peet’s transaction.
Keurig Dr Pepper expects low double-digit adjusted EPS growth for the full year, including 4% to 6% growth from its standalone operations alongside incremental earnings from the acquisition.
Adjusted operating income for the fourth quarter rose 4.8% to $1.19 billion, representing 26.5% of net sales. The increase was supported by higher net sales and productivity improvements, partially offset by inflationary pressures and increased selling, general and administrative expenses.
Performance was led by the U.S. Refreshment Beverages segment, where net sales climbed 11.5% to $2.7 billion, fueled by 7.0% volume and mix growth along with 4.5% favorable pricing. The acquisition of GHOST contributed 6.1 percentage points to volume growth during the quarter.
For full-year 2025, Keurig Dr Pepper reported adjusted EPS of $2.05, up 7.3% year over year, on revenue of $16.6 billion, representing an 8.2% annual increase.