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Keurig Q2 Earnings Meet Estimates, U.S. Refreshing Beverages Up 10.5%
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Key Takeaways
KDP's Q2 net sales rose 6.1% to $4.16B, surpassing estimates, with EPS of 49 cents matching forecasts.
U.S. Refreshment Beverages sales jumped 10.5% on strong volume/mix and pricing, led by key category gains.
U.S. Coffee sales dipped 0.2%, but pricing actions and sequential improvement point to early recovery signs.
Keurig Dr Pepper Inc. (KDP - Free Report) came out with second-quarter 2025 results, wherein both the top and bottom lines improved year over year, and sales came ahead of the Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of 49 cents grew 8.9% year over year and came in line with the Zacks Consensus Estimate. The bottom-line improvement was driven by strong growth in adjusted operating income.
Keurig Dr Pepper, Inc Price, Consensus and EPS Surprise
Quarterly results reflect top-line performance, which was fueled by strong momentum in U.S. Refreshment Beverages, supported by consistent in-market execution, innovation and disciplined pricing strategies. International markets contributed meaningfully, with broad-based growth across key geographies and categories, while U.S. Coffee showed encouraging signs of recovery, advancing sequentially. The company’s operational discipline, coupled with a clear strategic roadmap, continues to drive resilience amid evolving macroeconomic conditions.
This Zacks Rank #3 (Hold) company’s shares have gained 5.3% in the past six months compared with the industry’s 4.9% growth.
KDP's Stock Six Month Price Performance
Image Source: Zacks Investment Research
KDP’s Quarterly Performance
Net sales of $4.16 billion increased 6.1% year over year on a reported basis and surpassed the Zacks Consensus Estimate of $4.14 billion. On a constant-currency basis, net sales improved 7.2%, backed by a 5% increase in volume/mix and a favorable net price realization of 2.2%.
The adjusted gross profit rose 4.0% year over year to $2.29 billion, while the adjusted gross margin fell 110 basis points (bps) to 55%.
The adjusted operating income rose 5.9% year over year to $1028 billion, driven by higher sales, productivity savings and overhead efficiencies, partly negated by the impacts of inflation. Meanwhile, the adjusted operating margin was in line as compared to the previous year’s figure of 24.7%.
A Look at KDP’s Segmental Details
Sales in the U.S. Refreshment Beverages segment totaled $2.7 billion, up 10.5% year over year, reflecting 1% higher net price realization and 9.5% growth in volume/mix. This growth was supported by market share gains across key categories, including carbonated soft drinks, energy drinks and sports hydration. Additionally, the recent acquisition of GHOST contributed positively to the segment’s performance. The Zacks Consensus Estimate for the U.S. Refreshment Beverages segment was pegged at $2.7 billion for the second quarter of 2025.
Sales in the U.S. Coffee segment dipped 0.2% year over year to $948 million, reflecting net price realization improvement of 3.6%, somewhat offset by volume/mix decline of 3.8%. The nearly flat performance reflects K-Cup pricing actions implemented to address inflation, which were counterbalanced by lower pod and brewer shipments. The Zacks Consensus Estimate for the U.S. Coffee segment’s sales was pegged at $948 billion.
Sales in the International segment fell 1.8% year over year to $555 million. On a constant-currency basis, the segment’s net sales increased 5.7%, gaining from a favorable net price realization of 5.3% and a volume/mix rise of 0.4%. The Zacks Consensus Estimate for the International segment’s sales was $552 million for the second quarter.
KPD’s Financial Health
As of June 30, 2025, Keurig’s cash and cash equivalents were $509 million. The company had long-term obligations of $13.9 billion and total stockholders’ equity of $24.9 billion.
Net cash provided by operating activities totaled $640 million in the second quarter of 2025, with the free cash flow amounting to $427 million.
KDP’s 2025 Outlook
KDP reaffirmed its guidance for 2025. Management projects net sales increase in the mid-single-digits and adjusted EPS growth to be in the high-single-digits on a constant currency basis.
At current rates, foreign currency translation is likely to be nearly a one percentage point headwind on the top and bottom-line growth in the current year.
Stocks to Consider
We have highlighted three better-ranked stocks from the Consumer Staples sector, namely Vita Coco Company (COCO - Free Report) , Zevia (ZVIA - Free Report) and Diageo (DEO - Free Report) .
Vita Coco produces and sells coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for COCO’s 2025 earnings and sales indicates growth of 12.5% and 6.5%, respectively, from the previous year’s reported figures. Vita Coco has a trailing four-quarter average earnings surprise of 28.2%.
Zevia is focused on addressing health challenges resulting from excess sugar consumption by offering a portfolio of zero-sugar, zero-calorie, naturally sweetened beverages. It presently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Zevia’s 2025 sales and EPS indicates growth of 3.4% and 48.4%, respectively, from the prior-year reported levels. ZVIA delivered a trailing four-quarter earnings surprise of 33.6%, on average.
Diageo is involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer. DEO currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Diageo’s 2025 sales implies growth of 0.7% from the previous year’s reported number. Meanwhile, DEO’s earnings estimate indicates a year-over-year decline of 2.3%.
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Keurig Q2 Earnings Meet Estimates, U.S. Refreshing Beverages Up 10.5%
Key Takeaways
Keurig Dr Pepper Inc. (KDP - Free Report) came out with second-quarter 2025 results, wherein both the top and bottom lines improved year over year, and sales came ahead of the Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of 49 cents grew 8.9% year over year and came in line with the Zacks Consensus Estimate. The bottom-line improvement was driven by strong growth in adjusted operating income.
Keurig Dr Pepper, Inc Price, Consensus and EPS Surprise
Keurig Dr Pepper, Inc price-consensus-eps-surprise-chart | Keurig Dr Pepper, Inc Quote
Quarterly results reflect top-line performance, which was fueled by strong momentum in U.S. Refreshment Beverages, supported by consistent in-market execution, innovation and disciplined pricing strategies. International markets contributed meaningfully, with broad-based growth across key geographies and categories, while U.S. Coffee showed encouraging signs of recovery, advancing sequentially. The company’s operational discipline, coupled with a clear strategic roadmap, continues to drive resilience amid evolving macroeconomic conditions.
This Zacks Rank #3 (Hold) company’s shares have gained 5.3% in the past six months compared with the industry’s 4.9% growth.
KDP's Stock Six Month Price Performance
Image Source: Zacks Investment Research
KDP’s Quarterly Performance
Net sales of $4.16 billion increased 6.1% year over year on a reported basis and surpassed the Zacks Consensus Estimate of $4.14 billion. On a constant-currency basis, net sales improved 7.2%, backed by a 5% increase in volume/mix and a favorable net price realization of 2.2%.
The adjusted gross profit rose 4.0% year over year to $2.29 billion, while the adjusted gross margin fell 110 basis points (bps) to 55%.
The adjusted operating income rose 5.9% year over year to $1028 billion, driven by higher sales, productivity savings and overhead efficiencies, partly negated by the impacts of inflation. Meanwhile, the adjusted operating margin was in line as compared to the previous year’s figure of 24.7%.
A Look at KDP’s Segmental Details
Sales in the U.S. Refreshment Beverages segment totaled $2.7 billion, up 10.5% year over year, reflecting 1% higher net price realization and 9.5% growth in volume/mix. This growth was supported by market share gains across key categories, including carbonated soft drinks, energy drinks and sports hydration. Additionally, the recent acquisition of GHOST contributed positively to the segment’s performance. The Zacks Consensus Estimate for the U.S. Refreshment Beverages segment was pegged at $2.7 billion for the second quarter of 2025.
Sales in the U.S. Coffee segment dipped 0.2% year over year to $948 million, reflecting net price realization improvement of 3.6%, somewhat offset by volume/mix decline of 3.8%. The nearly flat performance reflects K-Cup pricing actions implemented to address inflation, which were counterbalanced by lower pod and brewer shipments. The Zacks Consensus Estimate for the U.S. Coffee segment’s sales was pegged at $948 billion.
Sales in the International segment fell 1.8% year over year to $555 million. On a constant-currency basis, the segment’s net sales increased 5.7%, gaining from a favorable net price realization of 5.3% and a volume/mix rise of 0.4%. The Zacks Consensus Estimate for the International segment’s sales was $552 million for the second quarter.
KPD’s Financial Health
As of June 30, 2025, Keurig’s cash and cash equivalents were $509 million. The company had long-term obligations of $13.9 billion and total stockholders’ equity of $24.9 billion.
Net cash provided by operating activities totaled $640 million in the second quarter of 2025, with the free cash flow amounting to $427 million.
KDP’s 2025 Outlook
KDP reaffirmed its guidance for 2025. Management projects net sales increase in the mid-single-digits and adjusted EPS growth to be in the high-single-digits on a constant currency basis.
At current rates, foreign currency translation is likely to be nearly a one percentage point headwind on the top and bottom-line growth in the current year.
Stocks to Consider
We have highlighted three better-ranked stocks from the Consumer Staples sector, namely Vita Coco Company (COCO - Free Report) , Zevia (ZVIA - Free Report) and Diageo (DEO - Free Report) .
Vita Coco produces and sells coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for COCO’s 2025 earnings and sales indicates growth of 12.5% and 6.5%, respectively, from the previous year’s reported figures. Vita Coco has a trailing four-quarter average earnings surprise of 28.2%.
Zevia is focused on addressing health challenges resulting from excess sugar consumption by offering a portfolio of zero-sugar, zero-calorie, naturally sweetened beverages. It presently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Zevia’s 2025 sales and EPS indicates growth of 3.4% and 48.4%, respectively, from the prior-year reported levels. ZVIA delivered a trailing four-quarter earnings surprise of 33.6%, on average.
Diageo is involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer. DEO currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Diageo’s 2025 sales implies growth of 0.7% from the previous year’s reported number. Meanwhile, DEO’s earnings estimate indicates a year-over-year decline of 2.3%.