Keurig Dr Pepper Inc. KDP is scheduled to release first-quarter 2026 results on April 23, before market open. The company is expected to register top-line growth when it reports the quarterly results. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.83 billion, indicating a 5.4% rise from the year-ago period’s reported number.
The consensus estimate for KDP’s first-quarter earnings has been unchanged in the past 30 days at 36 cents per share. The consensus mark for earnings per share suggests a decline of 14.3% on a year-over-year basis.
In the last reported quarter, the company delivered a positive earnings surprise of 1.7%. KDP has registered an earnings surprise of 3.1%, on average, in the trailing four quarters.
Keurig Dr Pepper, Inc Price and EPS Surprise
Keurig Dr Pepper, Inc price-eps-surprise | Keurig Dr Pepper, Inc Quote
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Keurig Dr Pepper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Keurig Dr Pepper currently has an Earnings ESP of +2.27% and a Zacks Rank #2.
Key Factors to Note Ahead of KDP’s Q1 Results
Keurig’s first-quarter performance is expected to have been driven by strong growth in U.S. Refreshment Beverages. Momentum in the Refreshment Beverages segment, driven by strength in carbonated soft drinks, energy and sports hydration, continues to support top-line expansion through innovation, pricing discipline and effective in-market activation.
Higher net price realization and volume/mix, supported by market share gains across key categories, including carbonated soft drinks, energy drinks and sports hydration, have been driving the segment’s performance.
Innovation-led execution and effective go-to-market strategies are expected to have fueled market share gains across core categories. Its expansion initiatives and efforts to innovate its products are acting as tailwinds. Meanwhile, sustained sales momentum and disciplined cost actions to offset inflation support solid earnings and healthy free cash flow generation.
KDP continues to focus on strengthening its core operations while laying the groundwork for its next phase of transformation. This process begins with the acquisition and integration of JDE Peet’s and culminates in the planned separation into two focused, pure-play businesses.
The Zacks Consensus Estimate for the Refreshment Beverages unit is pegged at $2.7 billion, up 12.5% year over year.
However, Keurig continues to operate in a challenging cost environment, with elevated green coffee prices and tariff impacts weighing on profitability, particularly within the U.S. Coffee segment. While pricing actions and productivity initiatives helped partially offset inflation, management indicated that coffee-related cost headwinds are expected to peak in the first quarter of 2026 before moderating in the back half of the year, reflecting hedging and inventory timing dynamics.
Valuation Picture
From a valuation perspective, Keurig Dr Pepper stock is trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 11.1X, which is below the five-year high of 23.33X and the Beverages - Soft Drinks industry’s average of 18.58X, the stock offers compelling value for investors seeking exposure to the sector.
Image Source: Zacks Investment Research
The recent market movements show that KDP shares have declined 5.2% in the past three months compared with the industry's growth of 5.3%.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
The Coca-Cola Company KO currently has an Earnings ESP of +0.54% and a Zacks Rank of 3. The consensus estimate for Coca-Cola’s first-quarter 2026 revenues is $12.3 billion, indicating 10.6% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coca-Cola’s first-quarter EPS is pegged at 81 cents, which implies a 11% year-over-year increase. KO delivered a trailing four-quarter earnings surprise of 3.6%, on average.
Molson Coors Beverage Company TAP currently has an Earnings ESP of +9.55% and a Zacks Rank of 3. The consensus mark for the first-quarter 2026 revenues is pegged at $2.3 billion, which indicates a jump of 1.4% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for TAP’s first-quarter earnings per share of 37 cents implies a decline of 26% from the figure reported in the year-ago quarter. TAP delivered a negative earnings surprise of 6.2% in the trailing four quarters.
Altria Group MO currently has an Earnings ESP of +0.52% and a Zacks Rank of 3. The consensus estimate for Altria Group’s first-quarter 2026 revenues is pegged at $4.56 billion, which indicates a surge of 0.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Altria Group’s first-quarter EPS is pegged at $1.24, which calls for a 0.8% year-over-year jump. MO delivered a trailing four-quarter earnings surprise of 2.5%, on average.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CocaCola Company (The) (KO): Free Stock Analysis Report
Altria Group, Inc. (MO): Free Stock Analysis Report
Molson Coors Beverage Company (TAP): Free Stock Analysis Report
Keurig Dr Pepper, Inc (KDP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).