KDP reported a strong Q2 2026, beating expectations on EPS and driven by U.S. refreshment beverages and the newly acquired JDE Peet's. Management reaffirmed full-year guidance, citing confidence in improving U.S. coffee trends in H2 and progress on integration and separation milestones. The tone was positive and forward-looking. Q2 EPS of $0.57 beat expectations, up 16% YoY, with consolidated net sales up 74.6% including the JDE Peet's acquisition.
KDP reported a strong Q2 2026, beating expectations on EPS and driven by U.S. refreshment beverages and the newly acquired JDE Peet's. Management reaffirmed full-year guidance, citing confidence in improving U.S. coffee trends in H2 and progress on integration and separation milestones. The tone was positive and forward-looking. Q2 EPS of $0.57 beat expectations, up 16% YoY, with consolidated net sales up 74.6% including the JDE Peet's acquisition.
KDP reported a strong Q2 2026, beating expectations on EPS and driven by U.S. refreshment beverages and the newly acquired JDE Peet's. Management reaffirmed full-year guidance, citing confidence in improving U.S. coffee trends in H2 and progress on integration and separation…
Q2 EPS of $0.57 beat expectations, up 16% YoY, with consolidated net sales up 74.6% including the JDE Peet's acquisition.
Legacy KDP net sales grew 7.3% (price +4.2%, volume/mix +3.1%), with U.S. refreshment beverages delivering double-digit growth.
Guidance · revenue to $26.15B
Management highlighted strong momentum in U.S. refreshment beverages with double-digit growth, driven by CSDs, energy drinks, and sports hydration. Energy drinks crossed 9% market share and they see a long runway to double-digit share. U.S. coffee saw subdued demand with category volume declines and unfavorable mix, but they expect improved trends in the back half.
Management reaffirmed guidance, highlighted strong performance in U.S. refreshment beverages and JDEP, and expressed confidence in delivering 2026 commitments and progressing toward separation.
“we now believe our second quarter operating profit likely represents the high watermark for JVE Peet's quarterly earnings contribution in 2026 based on the timing benefits I just discussed as well as the impact of the Peet to K-Cup transit…”
“Pod shipments declined 11.6% on an as-reported basis and 8.3%, excluding the impact of the PEATS reporting shift. Brewer shipments increased 2.1%, returning to growth”
“And in fact, I would tell you in 15 major customers across the U.S., we've already crossed that double-digit.”
“we expect enterprise pricing will probably be less of a net sales contributor in H2 versus H1, primarily due to the coffee dynamics that I discussed.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 | 10%–13% | 11.5% | MAINTAINED |
| Free cash flow | FY2026 | $2.5B | $2.5B | MAINTAINED |
| Revenue | FY2026 | $25.9B–$26.4B | $26.15B | MAINTAINED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2025 Q4 | EPS | FY2026 Q1 | $0.36–$0.37 | $0.39 | Met / beat |
The licensed McCafe K-Cup business with McDonald's is growing, expanding market share in the single-serve coffee pod category through strong commercial execution.
“In coffee products, our licensed McCafe K-Cups grew retail sales at a mid single digit rate and expanded market share, reflecting high quality commercial execution and effective marketing.”
… line results were impacted by single serve category volume declines and unfavorable portfolio mix, which reflected increased consumer caution and value seeking behavior. Despite these dynamics, we made progress across the business. Notably, brewer shipments returned to growth, supported by our great coffee without the grind Keurig marketing campaign. And we expect further improvements over the balance of the year. In coffee products, our licensed McCafe K-Cups grew retail sales at a mid single digit rate and expanded market share, reflecting high quality commercial execution and effective marketing. Our cold coffee, La Cologne Ready to Drink platform also drove outsized momentum, growing retail sales over 50% and gaining more than a point of market share, driven by distribution gains, increased display activity and strong velocity. Importantly, we continue to have line of sight to improving segment trends over the balance of the year. Our cost envelope will become more favorable as lower cost inventory and improving tariff impacts flow through the P&L. Our brewer business has started to inflect and should benefit from our commercial activity and we're actioning plans to …
KDP crossed 9% market share in the energy drink category, and in 15 major U.S. customers has already crossed the double-digit threshold, driven by brands like C4, Bloom, and Ghost. — KDP's energy portfolio is gaining share rapidly, pushing toward its double-digit market share goal, directly competing with major players like Celsius (PEP) and Monster (KO).
“Category trends were healthy, with consumers responding to the compelling value proposition and significant commercial activity from major players. We gained market share in the quarter, led by Dr Pepper.”
… in KDP International, partly offset by subdued trends in US coffee. Now, let me walk through each segment in more detail. I'll start with US refreshment beverages. Segment net sales and operating income Each grew at a double-digit rate in the second quarter, reflecting strength across both our core portfolio and newer growth platforms. Our largest business, carbonated soft drinks, continued to grow nicely. Category trends were healthy, with consumers responding to the compelling value proposition and significant commercial activity from major players. We gained market share in the quarter, led by Dr Pepper. The brand's Zero Sugar platform sustained its momentum, growing retail sales nearly 30% and gaining more share than any other trademark in the Zero Sugar space, driven by increasing household penetration. This reflected the benefits of marketing support, increased distribution, and greater display activity and we will continue to deploy these levers to drive further expansion. Dr Pepper franchise trends were also fueled by our creamy coconut limited time offering, which launched in April. The response to the innovation has been positive with the distribution build, …
KDP's total enterprise pricing will be less of a net sales contributor in H2 vs H1, primarily due to coffee dynamics, as carryover pricing anniversaries and JDE Peet's passes through lower coffee prices. — As pricing tailwinds fade in the back half, KDP's top-line growth increasingly relies on volume/mix, making execution in U.S. coffee and refreshment beverages crucial to hitting guidance.
“Our JDE PEAT segment generated $2.8 billion in net sales and $414 million in operating income in the second quarter, exceeding our expectations.”
… 24.7%, driven by continued cost pressure from green coffee inflation and tariff impacts. The volume mix decrease and increased marketing spending also played a role, partially offset by net price realization and productivity savings. While we continue to expect subdued segment results for the full year, Our cost profile should improve in the coming quarters, and we have good line of sight to improving profit trends in the back half. Our JDE PEAT segment generated $2.8 billion in net sales and $414 million in operating income in the second quarter, exceeding our expectations. Segment profitability was primarily driven by favorable pricing, net of cost inflation, along with robust productivity savings. The business also benefited from timing factors, including related to the recognition of derivative gains, as well as some marketing phasing. Looking ahead, we expect continued healthy results for J.D.E. Peets over the balance of the year, particularly as synergies build in the second half. That said, we now believe our second quarter operating profit likely represents the high watermark for JVE Peet's quarterly earnings contribution in 2026 based on the timing benefits I just …
KDP crossed 9% market share in the energy drink category, and in 15 major U.S. customers has already crossed the double-digit threshold, driven by brands like C4, Bloom, and Ghost. — KDP's energy portfolio is gaining share rapidly, pushing toward its double-digit market share goal, directly competing with major players like Celsius (PEP) and Monster (KO).
can get a little bit more color on the energy drink category and your expectations there. You had a previous target of getting to double digit market share, maybe where you stand versus that target. And then bigger picture, How do you think in the growth in the categories impacting coffee? We've obviously seen a lot of younger consumers shifting their caffeine intake into energy drinks as a replacement for coffee. So maybe if you can talk about the interaction between those categories and your perspective there would be great. Thank you.
… the category was born and raised in C-Store, and it continues to feature prominently there. But there's a lot of upside in other channels and opportunities across large format and others. Bullish on the category. Then our position, confident in our position. We like our portfolio. We've really curated this over the last many years. We're gaining market share. We've got real scale now. Right now on a run rate basis, Filippo, we're looking at a $1.5 billion net revenue, net sales business. If you look at what's driving our performance, I think this portfolio with authentic and distinctly positioned brands, When you think about C4, Bloom, Ghost, Black Rifle, great tasting products, great innovation, strong commercial programming, and then overlay the DSD capability that KDP brings to the party. Strong frontline execution, driving distribution, driving display activity. I think the other thing to point out is we focus on the most attractive part of the energy category which is zero sugar. That's our whole portfolio and zero sugar is the outside contributor to category growth. Really proud of what we've done. I would remind you that just about four years ago, we had less than a 1% market share. And as I mentioned in the prepared remarks here in Q2, we're a 9% share, just crossed the 9% share a few years later. And that puts us well on our way to my goal of a double-digit market share. And in fact, I would tell you in 15 major customers across the U.S., we've already crossed that double-digit. The other part of your question was, are we seeing any sort of interaction between energy and coffee? And what I tell you is, we monitor that potential shifting behavior very closely, and we have not seen any sustained share movement between coffee and energy. Now, in any given year, The share shift from a panel data standpoint can lean one way or another, but if you look at it over the last three to four years, I would tell you the impact is roughly neutral. There are some years where energy is a net gainer. There are other years where coffee is a net gainer. And when you look at it in aggregate over the last many years, you see it broadly neutral. So, you know, we continue to like in our current portfolio that we've got leading and winning solutions to serve that energy and alertness need that consumers have, whether that's through energy drinks or through coffee.
KDP's JDE Peet's Q2 operating profit is expected to be the 2026 high watermark due to timing benefits and the Peet's K-Cup reporting shift to U.S. Coffee in the back half.
… favorable pricing, net of cost inflation, along with robust productivity savings. The business also benefited from timing factors, including related to the recognition of derivative gains, as well as some marketing phasing. Looking ahead, we expect continued healthy results for J.D.E. Peets over the balance of the year, particularly as synergies build in the second half. That said, we now believe our second quarter operating profit likely represents the high watermark for JVE Peet's quarterly earnings contribution in 2026 based on the timing benefits I just discussed as well as the impact of the Peet to K-Cup transition to U.S. Coffee in the back half. In our KDP international segment, both revenue and profit trends improved sequentially from the first quarter, consistent with our expectations. Net sales grew 12.4%, driven by 6.5 percentage points from volume mixed gains and 5.9 points from net price realization. Segment operating income was flat versus the prior year. Benefits from net sales growth and productivity savings were offset by higher costs, including green coffee inflation and the Mexico beverage tax, as well as increased marketing investments. Turning to the …