A month has gone by since the last earnings report for Keurig Dr Pepper, Inc (KDP Quick QuoteKDP - Free Report) . Shares have lost about 6.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Keurig Dr Pepper due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Keurig Dr Pepper, Inc before we dive into how investors and analysts have reacted as of late.

Keurig Q2 Earnings Meet Estimates, U.S. Refreshing Beverages Up 10.5%

Keurig Dr Pepper reported second-quarter 2025 results, wherein both the top and bottom lines improved year over year, and sales were 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.

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.

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 by 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  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. 

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. 

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%.

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.

2025 Outlook

KDP reaffirmed its guidance for 2025. Management projects net sales increase in the mid-single-digits and adjusted EPS growth 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, Keurig Dr Pepper has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Keurig Dr Pepper has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Keurig Dr Pepper is part of the Zacks Beverages - Soft drinks industry. Over the past month, Coca-Cola (KO Quick QuoteKO - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended September 2025 more than a month ago.

Coca-Cola reported revenues of $12.41 billion in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $0.82 for the same period compares with $0.77 a year ago.

For the current quarter, Coca-Cola is expected to post earnings of $0.56 per share, indicating a change of +1.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.

Coca-Cola has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.