Keurig Dr Pepper Inc. (NASDAQ:KDP) reported first-quarter results that came in ahead of analyst forecasts, supported by robust sales in its U.S. refreshment beverages segment, even as the company faced higher costs.
The group posted adjusted earnings per share of $0.39, beating the consensus estimate of $0.37 by $0.02. Revenue totaled $3.98 billion, above the $3.83 billion forecast and representing an 8.1% increase on an adjusted basis from a year earlier. On a reported basis, net sales rose 9.4% year-on-year.
Shares gained 1.5% following the announcement.
Outlook reaffirmed with strong revenue guidance
For fiscal 2026, Keurig Dr Pepper guided for revenue between $25.9 billion and $26.4 billion. The midpoint of $26.15 billion is above the analyst consensus of $25.89 billion.
The company also reiterated its full-year outlook for constant currency net sales growth and adjusted earnings per share.
Beverage momentum offsets cost pressures
“The year is off to a good start. We delivered a solid first quarter, with strong momentum in our cold beverage portfolio and coffee results that tracked with our expectations, even as we navigated elevated costs,” said Tim Cofer.
Strategic acquisition and earnings details
Keurig Dr Pepper completed its acquisition of JDE Peet’s on April 1, a move Cofer described as “a significant milestone in our transformation agenda and uniting our complementary organizations under a shared vision for global coffee leadership.”
On a GAAP basis, diluted earnings per share were $0.20, down 47.4% from the prior year. The drop contrasts with a more modest 7.1% decline in adjusted EPS, which excludes certain one-off items.