Keurig Dr Pepper Beats Q4 Estimates and Issues Strong 2026 Revenue Outlook

Core Viewpoint - Keurig Dr Pepper Inc. reported strong fourth-quarter results, exceeding analyst expectations, which led to a rise in share price by over 2% in premarket trading Financial Performance - Adjusted earnings per share for the fourth quarter were $0.60, surpassing consensus estimates by $0.01 [1] - Revenue for the fourth quarter reached $4.5 billion, exceeding the forecast of $4.36 billion [1] - Adjusted operating income for the fourth quarter increased by 4.8% to $1.19 billion, representing 26.5% of net sales [3] - For the full year 2025, adjusted EPS rose by 7.3% to $2.05, while revenue increased by 8.2% to $16.6 billion [4] Future Outlook - For fiscal 2026, the company projected revenue between $25.9 billion and $26.4 billion, significantly above the consensus estimate of $17.196 billion [2] - The midpoint revenue estimate of $26.15 billion includes expected contributions from the acquisition of JDE Peet's, anticipated to close in early April [2] - The company expects low-double-digit adjusted EPS growth in 2026, with 4% to 6% growth from its standalone business plus additional contributions from JDE Peet's [2] Segment Performance - The U.S. Refreshment Beverages segment led performance with net sales rising 11.5% to $2.7 billion [3] - Volume/mix in this segment increased by 7.0%, supported by a 4.5% favorable net price realization [3] - The GHOST acquisition contributed 6.1 percentage points to volume growth [3]