CORRECTED-Keurig Dr Pepper Q4 revenue, profit beat estimates

Overview

• Beverage company's Q4 revenue grew 10.5%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company announced Board Chair transition from Bob Gamgort to Pamela Patsley

Outlook

• Keurig Dr Pepper expects 2026 net sales of $25.9 bln to $26.4 bln

• Company anticipates low-double-digit EPS growth in 2026

• Foreign currency forecasted to add one percentage point to 2026 sales growth

Result Drivers

• U.S. REFRESHMENT BEVERAGES - Segment net sales increased 11.5% driven by volume/mix growth and favorable net price realization, with GHOST acquisition contributing significantly

• INTERNATIONAL GROWTH - Segment net sales rose 21%, led by favorable net price realization and volume/mix growth

• U.S. COFFEE CHALLENGES - Segment net sales increased 3.9%, with price realization offsetting volume declines, impacting adjusted operating income

Company press release: ID:nPn8fJnCZa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

• Wall Street's median 12-month price target for Keurig Dr Pepper Inc is $35.00, about 17.6% above its February 23 closing price of $29.77

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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