Revenue Growth Acceleration
KDP grew total revenue 8.2% year-over-year to $16.60B in FY2025, up from $15.35B in FY2024, reflecting broad-based volume and pricing gains across its beverage portfolio.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
KDP delivered strong FY2025 results with revenue rising 8.2% to $16.6B and net income surging 44.3% to $2.1B, driven by significant operating leverage, though operating cash flow declined 10.3% and the current ratio remains below 1.0.
Revenue
$16.6B
+8.16% YoY
EPS (Diluted)
$1.53
+45.71% YoY
Gross Margin
54.2%
-1.4 pts YoY
Operating Income
$3.58B
+37.98% YoY
Source: SEC XBRL
Keurig Dr Pepper (KDP) reported FY2025 revenue of $16.6B, up 8.2% year over year. Operating margin was 21.5%, up 4.6 points from 16.9% a year earlier. Operating cash flow was $1.99B, down 10.3% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.57 | 0.54 | Beat +5.0% |
| Mar 2026 | 0.39 | 0.38 | Beat +3.8% |
| Dec 2025This filing | 0.60 | 0.59 | Beat +0.9% |
| Sep 2025 | 0.54 | 0.54 | Miss -0.4% |
Reported EPS of $0.60 versus the $0.59 analyst consensus — a +0.9% beat for Dec 2025.
Compiled by AI from this SEC filing
KDP grew total revenue 8.2% year-over-year to $16.60B in FY2025, up from $15.35B in FY2024, reflecting broad-based volume and pricing gains across its beverage portfolio.
Source: 10-K Income Statement
Operating income surged 38.0% to $3.58B from $2.59B, with operating margin expanding approximately 470 basis points to 21.5%, suggesting meaningful cost discipline and operating leverage despite higher cost of revenue.
Source: 10-K Income Statement
Cost of revenue rose 11.5% to $7.60B, faster than revenue growth of 8.2%, compressing gross margin by approximately 136 basis points to 54.2% from 55.6%, indicating input cost headwinds.
Source: 10-K Income Statement & Key Ratios
Net income jumped 44.3% to $2.08B and diluted EPS rose 45.7% to $1.53, significantly outpacing revenue growth and reflecting improved profitability and potentially lower below-the-line costs such as interest or taxes.
Source: 10-K Income Statement
Cash and equivalents more than doubled to $1.03B from $510M, yet operating cash flow fell 10.3% to $1.99B, and share buybacks were nearly eliminated ($9M vs. $1.11B prior year), suggesting a more conservative capital allocation stance.
Source: 10-K Cash Flow Statement & Balance Sheet
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
KDP's current ratio stands at 0.635, meaning current liabilities of $8.29B significantly exceed current assets of $5.27B. This structural short-term liquidity deficit could create refinancing or operational stress if credit markets tighten or revenue softens unexpectedly.
Source: 10-K Balance Sheet & Key Ratios
Long-term debt of $13.04B and a debt-to-equity ratio of 1.17 reflect a heavily leveraged balance sheet, a legacy of KDP's merger history. Rising interest rates or credit spread widening could meaningfully increase financing costs and pressure free cash flow.
Source: 10-K Balance Sheet & Key Ratios
Despite net income of $2.08B, operating cash flow was only $1.99B and declined 10.3% year-over-year, suggesting working capital headwinds or non-cash income items. Sustained divergence between earnings and cash generation could limit dividend sustainability and debt repayment capacity.
Source: 10-K Cash Flow Statement
Gross margin contracted approximately 136 basis points to 54.2% as cost of revenue grew 11.5%, outpacing revenue growth of 8.2%. If commodity, packaging, or logistics costs remain elevated, further margin erosion could offset volume-driven revenue gains.
Source: 10-K Income Statement & Key Ratios
Share buybacks collapsed 99.2% to just $9M in FY2025 from $1.11B in FY2024, while dividends paid increased 4.7% to $1.25B. This sharp reversal in buyback activity may indicate management is prioritizing balance sheet repair or debt management over shareholder returns.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 16.60 $B | 15.35 $B | +8.16% |
Cost of Revenue $B | 7.60 $B | 6.82 $B | +11.46% |
Gross Profit $B | 9.00 $B | 8.53 $B | +5.51% |
Operating Income $B | 3.58 $B | 2.59 $B | +37.98% |
Net Income $B | 2.08 $B | 1.44 $B | +44.27% |
EPS (Basic) $ | 1.53 $ | 1.06 $ | +44.34% |
EPS (Diluted) $ | 1.53 $ | 1.05 $ | +45.71% |
R&D Expense $M | 70.00 $M | 70.00 $M | 0.00% |
SG&A Expense $B | 5.35 $B | 5.01 $B | +6.74% |
Answers draw on this SEC filing and the data on this page
Keurig Dr Pepper's Q2 FY2026 results were dominated by its transformative acquisition of JDE Peet's, which drove a 75.6% revenue increase but caused a 74% drop in net income attributable to KDP due to integration costs and higher debt.
KDP reported Q1 2026 revenue of $3.98B (+9.4% YoY), but net income fell sharply by 47.8% to $270M, driven by rising costs, higher SG&A, and a significant balance sheet expansion tied to a major financing event.
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