Keurig Dr Pepper's 2025 Results Showcase Growth and Future Plans for 2026

Keurig Dr Pepper Inc. (NASDAQ: KDP) has released its financial results for the fourth quarter and full year ended December 31, 2025, marking a significant achievement in their ongoing growth strategy. The company's net sales for the year totaled $16.60 billion, a notable increase of 8.2% from the previous year, driven primarily by strong performance within the U.S. Refreshment Beverages segment.>

The company reported a remarkable growth in diluted earnings per share (EPS), which reached $1.53 in 2025, reflecting a 45.7% increase compared to 2024. Adjusted diluted EPS also showed positive progress, rising to $2.05, an increase of 7.3% year-over-year. This robust performance illustrates Keurig Dr Pepper's resilience and adaptability in a dynamic business environment, according to CEO Tim Cofer. Cofer stated, "2025 was another strong year for KDP. We delivered on our guidance, navigated the dynamic operating environment with agility, and executed well with winning innovation and robust commercial activation of our brands."

A key highlight for the year was the acquisition of GHOST, which contributed significantly to the company's growth. The U.S. Refreshment Beverages segment alone saw net sales increase by 11.9% to $10.4 billion, greatly aided by market share gains in carbonated soft drinks, energy drinks, and sports hydration.

In the coffee segment, net sales remained relatively stable, increasing by 0.6% to reach $4.0 billion. Here, favorable pricing partially offset a decline in volume mix, primarily attributed to a decrease in brewer sales despite an increase in K-Cup pod sales.

Furthermore, Keurig Dr Pepper's international segment experienced a 5.9% increase in net sales, highlighting strong growth in key markets such as Mexico and Canada. CEO Cofer also noted the importance of operating cash flow, which was reported at nearly $2 billion, with free cash flow surpassing $1.5 billion, reflecting the efficiency of their operations.

Looking ahead to 2026, Keurig Dr Pepper has set an ambitious target for double-digit adjusted EPS growth, with the expected contribution from its newly acquired subsidiary, JDE Peet's. This guidance was reinforced with expectations of net sales to reach between $25.9 billion and $26.4 billion, aiming for a low-double-digit growth rate.

Keurig Dr Pepper also plans to undergo a significant transition within its leadership structure, with Bob Gamgort stepping down as Board Chair, transitioning the role to Pamela Patsley by the end of the first quarter of 2026. Gamgort expressed confidence in the company's strategic direction and progress towards integrating JDE Peet's into their operations.

As a leader in the beverage sector with an extensive portfolio of over 125 brands, Keurig Dr Pepper's commitment to innovation and quality continues to differentiate it from competitors. The company aims to strengthen its position in various beverage categories, including carbonated soft drinks, coffee, and emerging growth segments like energy drinks and sports hydration. With a workforce of approximately 30,000, Keurig Dr Pepper remains focused on making a positive impact on its community and environment while enhancing consumer beverage experiences.

In summary, the results of 2025 mark a fruitful year for Keurig Dr Pepper, showcasing strong growth across multiple segments and setting a solid foundation for ambitious plans in 2026. Investors and stakeholders can look forward to continued progress and innovation from this beverage giant.