Keurig Dr Pepper Inc. (NASDAQ:KDP) shares rose after delivering a clean earnings beat and showing pricing power across key segments.

Quarterly Earnings

The company, which owns brands such as Dr Pepper, 7Up, Snapple and Green Mountain Coffee, reported first-quarter adjusted earnings per share of 39 cents, beating the analyst consensus estimate of 37 cents. Quarterly sales of $3.976 billion (+9.4% year over year) outpaced the Street view of $3.838 billion.

On a constant currency basis, net sales advanced 8.1%, driven by favorable net price realization of 5.5% and volume/mix growth of 2.6%.

U.S. Refreshment Beverages net sales for the first quarter increased 11.9% to $2.6 billion, while sales in U.S. Coffee decreased 2.3% to $857 million. International net sales for the quarter increased 19.5% to $520 million. 

Adjusted operating income decreased 1.9% to $838 million and totaled 21.1% of net sales. Adjusted operating income declined mainly due to inflationary pressures and higher SG&A expenses, including increased marketing spend. These impacts were partly offset by net sales growth and productivity savings.

Operating cash flow for the first quarter was $281 million, and free cash flow totaled $184 million.

Outlook

The firm affirmed the 2026 sales outlook of $25.900 billion-$26.400 billion, compared with the $26.081 billion estimate.

“With well-constructed plans in place, high-quality execution, and improving cost visibility as the year unfolds, we remain confident in our ability to deliver on our commitments while standing up two pure-play companies positioned for success,” said CEO Tim Cofer.

KDP Price Action: Keurig Dr Pepper shares were up 6.76% at $28.33 at the time of publication on Thursday, according to Benzinga Pro data.

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