Keurig Dr Pepper Inc. is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q1 2026 10-Q:
Revenue grew 9.4% YoY to $3.98B in Q1 2026, but Cost of Revenue rose faster at 13.8% YoY to $1.88B, compressing Gross Margin from 54.6% to 52.8%. This indicates input cost inflation or unfavorable product mix is outpacing top-line growth.
SG&A expenses increased 12.6% YoY to $1.34B, contributing to a 5.6% decline in Operating Income to $756M despite higher revenues. Operating Margin contracted from 22.0% to 19.0%, signaling elevated investment in selling and administrative functions.
Net Income dropped from $517M to $270M YoY, with EPS (basic and diluted) falling from $0.38 to $0.20. The decline beyond operating income suggests significant below-the-line charges such as higher interest expense, likely tied to the substantial increase in long-term debt.
Revenue
$3.98B
++9.38% YoY
EPS (Basic)
$0.20
-47.37% YoY
Gross Margin
52.8%
-1.84% YoY
Operating Income
$756M
-5.62% YoY
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