Keurig Dr Pepper Inc. (KDP) AI Stock Analysis

Keurig Dr Pepper Inc. operates as a leading beverage company across four main segments: Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages. The Coffee Systems segment manufactures and distributes K-Cup pods, brewers, and specialty coffee via retail partners, third-party distributors, and keurig.com. The Packaged Beverages segment produces and distributes owned and contract-manufactured beverages. The Beverage Concentrates segment manufactures and markets concentrates under brands such as Dr Pepper, Canada Dry, Snapple, and 7UP. The Latin America Beverages segment distributes carbonated soft drinks, mineral water, bottled water, and vegetable juice products under brands including Peñafiel, Squirt, and Aguafiel.

Between FY2021 and FY2025, Keurig Dr Pepper increased revenue from $12.68B to $16.60B, reflecting a 5-year revenue CAGR of 7.4%. Gross margin stood at 54.2% in FY2025, while operating margin was 22.0%, yielding net income of $2.08B and EPS of $2.05. Over the trailing twelve months, revenue reached $20.09B, though operating margin moderated to 12.9% and net margin was 7.1%. For the latest quarter ended June 30, 2026, quarterly revenue grew 75.6% year-over-year, while quarterly earnings declined 90.0% year-over-year, bringing trailing twelve-month EPS to $0.99.

As of June 30, 2026, Keurig Dr Pepper held $1.52B in cash and short-term investments against $34.40B in total debt, resulting in net debt of $32.88B. The company recorded a current ratio of 0.48 and a debt-to-equity ratio of 1.37 alongside shareholders' equity of $25.03B. In FY2025, operating cash flow was $1.99B and free cash flow was $1.50B after $486.0M in capital expenditures. Capital returns during FY2025 included $1.25B in dividends paid and $9.0M in share buybacks, contributing to a 5-year share count change of -4.5%.

Keurig Dr Pepper trades at a trailing P/E of 35.0x, above the median of its Nasdaq-100 Consumer Defensive peers at 32.9x. Its forward P/E of 12.5x sits below the peer median of 26.0x, while EV/EBITDA is 16.7x compared to the peer median of 17.9x. The stock has a price-to-sales ratio of 2.3x and a PEG ratio of 0.98. Over the past year, KDP posted a return of 28.9%, outperforming the S&P 500 (SPY) return of 16.8%, but its 5-year return of 12.0% trailed the S&P 500 return of 83.0%.

Keurig Dr Pepper pays an annual forward dividend of $0.92 per share, representing a dividend yield of 2.66% on a quarterly schedule. The dividend payout ratio stands at 43.8%, supported by 18 consecutive years of dividend payments. Over the past five years, the dividend has grown at an annualized rate of 8.9%, with the last ex-dividend date occurring on September 28, 2026.

Wall Street coverage includes 8 Strong Buy, 5 Buy, and 5 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target of $36.21 implies an upside of 4.6% relative to the last close of $34.62. Analysts project FY2026 EPS of $2.29 on revenue of $26.31B, followed by FY2027 EPS of $2.53 on revenue of $29.95B. The company has beaten EPS expectations in 3 of the last 4 quarters, with its next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Keurig Dr Pepper Inc. (KDP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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