Financial Performance: Keurig Dr Pepper Inc. reported a 10.7% year-over-year increase in quarterly sales to $4.31 billion, exceeding expectations, with adjusted earnings per share of 54 cents.
Segment Growth: The U.S. Refreshment Beverages segment saw a 14.4% increase in net sales, while U.S. Coffee grew by 1.5%, and International sales rose by 10.5%.
Profitability Metrics: Despite strong sales, adjusted operating margins contracted to 25.3%, while adjusted net income increased by 6.5% to $738 million, with operating cash flow of $639 million.
Future Outlook: The company raised its fiscal 2025 guidance for net sales growth to the high-single-digit range and reiterated its outlook for adjusted diluted EPS growth, while also preparing for future transformations.
Wall Street analysts forecast KDP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KDP is 34.58 USD with a low forecast of 26.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast KDP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KDP is 34.58 USD with a low forecast of 26.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 27.700
Low
26.00
Averages
34.58
High
42.00
Current: 27.700
Low
26.00
Averages
34.58
High
42.00
Jefferies
Kaumil Gajrawala
Buy -> Hold
downgrade
$32
2025-12-16
Reason
Jefferies
Kaumil Gajrawala
Price Target
$32
AI Analysis
2025-12-16
downgrade
Buy -> Hold
Reason
Jefferies analyst Kaumil Gajrawala downgraded Keurig Dr Pepper to Hold from Buy with a $32 price target. The company's new BevCo and Global CoffeeCo are capable of delivering top-line growth in FY26-27, but large scare mergers come with integration risk, the analyst tells investors in a research note. The firm further cites a heavy debt load, coffee price volatility, and new financing structure in its downgrade.
Deutsche Bank
Buy
to
Hold
downgrade
$35 -> $32
2025-12-15
Reason
Deutsche Bank
Price Target
$35 -> $32
2025-12-15
downgrade
Buy
to
Hold
Reason
Deutsche Bank downgraded Keurig Dr Pepper to Hold from Buy with a price target of $32, down from $35, as part of its 2026 outlook for the consumer packaged goods sector. The analyst remains more cautious on names with "complex" acquisitions, which prompts the downgrade of Keurig Dr Pepper. It cites the company's integration demands, potential coffee questions, rising energy competition, and the stock's 0% run over the past month for the downgrade.
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Deutsche Bank
Buy
to
Hold
downgrade
$32
2025-12-15
Reason
Deutsche Bank
Price Target
$32
2025-12-15
downgrade
Buy
to
Hold
Reason
Deutsche Bank downgraded Keurig Dr Pepper to Hold from Buy with a $32 price target.
Piper Sandler
Michael Lavery
Overweight
maintain
$35 -> $38
2025-12-15
Reason
Piper Sandler
Michael Lavery
Price Target
$35 -> $38
2025-12-15
maintain
Overweight
Reason
Piper Sandler analyst Michael Lavery raised the firm's price target on Keurig Dr Pepper to $38 from $35 and keeps an Overweight rating on the shares. The firm says Keurig's top-line momentum for both U.S. Coffee and USRB is steady. U.S. Coffee's pod pricing continues to build in market and should wrap into early 2026, with elasticities manageable so far. Tariffs on coffee imports have rolled off, but relief for Keurig Dr Pepper is likely six months out as it has to work through inventory already subject to tariffs, Piper adds. International's topline momentum remains strong, which the firm expects to continue in Q4, though it thinks Mexico's new sugar tax will be a modest drag on Keurig Dr Pepper's International volume in the first half of 2026.
About KDP
Keurig Dr Pepper Inc. is a beverage company in North America that manufactures, markets, distributes and sells hot and cold beverages and single serve brewing systems. It has a portfolio of beverage brands, including Keurig, Dr Pepper, Canada Dry, Mott's, A&W, Penafiel, Snapple, 7UP, Green Mountain Coffee Roasters, GHOST, Clamato, Core Hydration and The Original Donut Shop, as well as the Keurig brewing system. Its U.S. Refreshment Beverages segment is a manufacturer and distributor of liquid refreshment beverages (LRBs). This segment manufactures and distributes concentrates, syrup and finished beverages of its brands and third-party brands, to third-party bottlers, distributors, retailers, and end consumers. Its U.S. Coffee segment is a manufacturer and distributor of single serve brewers, specialty coffee (including hot and iced varieties), and ready to drink (RTD) coffee. Its International segment includes sales in Canada, Mexico, the Caribbean and other international markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
