Keurig Dr Pepper Inc. (NASDAQ:KDP) reported third-quarter results on Monday that met earnings expectations and beat revenue estimates, prompting the company to raise its full-year sales guidance. Shares rose 3.7% following the announcement.
The beverage group posted adjusted earnings of $0.54 per share, in line with analyst forecasts. Quarterly revenue surged 10.7% to $4.31 billion, exceeding the $4.15 billion consensus. The strong results were fueled by robust growth in U.S. Refreshment Beverages and a sequential improvement in U.S. Coffee.
KDP upgraded its 2025 constant currency net sales growth outlook to a high single-digit range, up from its previous mid-single-digit projection, while maintaining its adjusted EPS growth target in the same high-single-digit range.
“We are pleased with our third quarter results, which demonstrated robust growth in U.S. Refreshment Beverages and encouraging sequential progress in U.S. Coffee,” said Tim Cofer, CEO of Keurig Dr Pepper. “Strong innovation and in-market execution drove market share gains across key categories.”
The U.S. Refreshment Beverages division led the performance with a 14.4% jump in net sales to $2.7 billion, supported by 11.2% volume/mix growth and a 3.2% favorable pricing impact. The acquisition of GHOST contributed 7.2 percentage points to volume/mix growth in this segment.
In the U.S. Coffee business, net sales rose 1.5% to $991 million, as a 5.5% pricing benefit offset a 4.0% volume/mix decline. International sales grew 10.5% to $580 million, reflecting 10.1% constant currency growth.
Operating cash flow came in at $639 million, with free cash flow at $528 million for the quarter. The company also reiterated its focus on preparing for the planned acquisition of JDE Peet’s N.V. and the subsequent separation into two independent entities.