KEURIG DR PEPPER INC (NASDAQ:KDP) reported fourth-quarter results for 2025 that surpassed Wall Street's expectations, driven by strength in its beverage portfolio. The company also provided an optimistic outlook for the coming year, which includes the anticipated contribution from its planned acquisition of JDE Peet's.
Earnings and Revenue Beat
For the quarter ended December 31, 2025, the beverage giant posted revenue of $4.50 billion, a 10.5% increase compared to the same period last year. This figure came in ahead of the analyst consensus estimate of $4.40 billion. On the profitability front, the company reported non-GAAP earnings per share (EPS) of $0.60, which was 1.9% higher than the $0.59 analysts had projected.
The performance highlights for the quarter include:
- Revenue: $4.50 billion reported vs. $4.40 billion estimated.
- Non-GAAP EPS: $0.60 reported vs. $0.59 estimated.
- The company noted that results were consistent with its full-year 2025 guidance and were led by strong momentum in its U.S. Refreshment Beverages segment.
Market Reaction and Price Action
The market has responded positively to the earnings beat and forward-looking commentary. In pre-market trading following the report, KDP shares were up approximately 2.3%. This immediate reaction suggests investor approval of both the quarterly outperformance and management's confidence in the year ahead. Over the past month, the stock had already gained about 7.2%, indicating building optimism leading into the earnings release.
A Bullish Outlook for 2026
A significant portion of the company's announcement and subsequent market focus was on its guidance for the 2026 fiscal year. Management stated it is targeting double-digit growth in adjusted EPS for the year. This ambitious goal is notably underpinned by the expected contribution from the planned acquisition of Dutch coffee maker JDE Peet's NV, which is slated to close later in 2026.
This outlook sets a high bar when compared to current analyst projections. Wall Street's estimates for the full year 2026 currently stand at sales of $17.40 billion and revenue of $2.19 billion. The company's own forecast for strong profit growth, fueled by a major acquisition, appears to be more aggressive than the existing sales estimates from analysts, potentially explaining the positive investor sentiment.
Press Release Summary
The key takeaways from the company's earnings press release are:
- Delivery of 2025 financial results that met the company's previously issued guidance.
- Strong quarterly performance was led by the U.S. Refreshment Beverages division.
- The issuance of a 2026 outlook that targets double-digit adjusted EPS growth.
- The explicit linkage of this growth target to the anticipated benefits from the JDE Peet's acquisition.
For a detailed look at historical earnings, future estimates, and analyst projections, you can review the data here: KDP Earnings & Estimates.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
