Keurig Dr Pepper Inc (NASDAQ:KDP) exceeded Wall Street expectations in both revenue and profit for the fourth quarter and full year 2025, posting a turnaround in GAAP net income and signaling continued growth for 2026.
The company reported Q4 net sales of $4.50 billion, up 10.5% year-over-year, and ahead of estimates of $4.35 billion.
Adjusted EPS of $0.60 beat the consensus estimate of $0.59.
GAAP net income swung to $353 million from a $144 million loss a year earlier.
For the full year, net sales reached $16.6 billion, an 8.2% increase from 2024, while adjusted EPS rose 7.3% to $2.05.
Keurig Dr Pepper attributed its performance to strong momentum in US Refreshment Beverages and International segments and expects contributions from JDE Peet’s to support double-digit adjusted EPS growth in 2026.
"2025 was another strong year for KDP. We delivered on our guidance, navigated the dynamic operating environment with agility, and executed well in the marketplace with winning innovation and robust commercial activation of our brands,” Keurig Dr Pepper CEO Tim Cofer said in a statement.
“In 2026, we intend to build upon our momentum with the acquisition and integration of JDE Peet's and progress towards the subsequent separation into two advantaged pure play companies."
Shares of Keurig Dr Pepper traded 3.7% higher at about $31 following its earnings report.