Keurig Dr Pepper Inc. KDP is scheduled to release second-quarter 2026 results on Aug. 6, before market open. The company is expected to register bottom and top-line growth when it reports the quarterly results. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, indicating a 72.3% rise from the year-ago period’s number.
The consensus estimate for KDP’s second-quarter earnings has remained unchanged in the past 30 days at 55 cents per share. The consensus mark for earnings per share suggests a rise of 12.2% on a year-over-year basis.
In the last reported quarter, the company delivered an earnings surprise of 5.4%. KDP has registered an earnings surprise of 1.8%, on average, in the trailing four quarters.
Key Factors to Note Ahead of KDP’s Q2 Results
Keurig Dr Pepper’s second-quarter performance is likely to have been driven by strength in brands and pricing actions. Its expansion initiatives and efforts to innovate its products are acting as tailwinds. Sturdy momentum in the Refreshment Beverages segment has been contributing to its results. 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.
Keurig Dr Pepper's strategic efforts are centered on advancing its transformation while strengthening its core business. The company is focused on seamlessly integrating the recently acquired JDE Peet's business to unlock operational and commercial synergies. Internationally, KDP is pursuing portfolio and distribution expansion in Canada and Mexico and adopting a capital-light partnership model in Europe to broaden its consumer reach.
Srength in coffee innovations, coupled with portfolio-expansion actions through partnerships like Electrolit, GHOST and Bloom Pop, is likely to aid results. The company’s strategic transformation, innovation pipeline and resilient brand portfolio are expected to have acted as tailwinds. All aforesaid factors are expected to have driven continued market share gains and overall performance in the to-be-reported quarter. The Zacks Consensus Estimate for sales at the Refreshment Beverages unit and the International division is pegged at $2.8 billion and $635 million, showing respective increases of 7% and 14.4% year over year.
Although the aforesaid positives are likely to aid the quarterly results, Keurig Dr Pepper has been witnessing inflationary pressures and increased marketing investments. Tariff-related pressures also remain concerning. Elevated input costs, particularly higher green coffee prices, tariffs and packaging-related inflation, are likely to have acted as deterrents.
Valuation Picture & Price Performance
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 12.7X, which is below the five-year high of 23.33X and the Beverages - Soft Drinks industry’s average of 19.69X, the stock offers compelling value for investors seeking exposure to the sector.
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The recent market movements show that KDP’s shares have risen 10.4% in the past six months compared with the industry's growth of 3.3%.
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What the Zacks Model Unveils
Our proven model does not conclusively predict 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. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Keurig Dr Pepper currently has an Earnings ESP of -1.82% and a Zacks Rank of 3.
Keurig Dr Pepper, Inc Price and EPS Surprise
Keurig Dr Pepper, Inc price-eps-surprise | Keurig Dr Pepper, Inc Quote
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.
Primo Brands Corporation PRMB has an Earnings ESP of +16.51% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register a top-line increase when it reports second-quarter 2026 numbers. The consensus estimate for quarterly revenues is pegged at $1.8 billion, which indicates a rise of 1.8% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for PRMB’s quarterly bottom line has dipped a penny in the past 30 days to 34 cents per share. The consensus mark for earnings shows a decline of 5.6% from the figure reported in the year-ago quarter. PRMB has delivered an earnings surprise of 1.4%, on average, in the trailing four quarters.
The Kraft Heinz Company KHC has an Earnings ESP of +0.82% and a Zacks Rank of 2 at present. The company is expected to register bottom and top-line declines when it reports second-quarter 2026 numbers. The Zacks Consensus Estimate for KHC’s quarterly bottom line has been stable in the past 30 days at 53 cents per share. The consensus mark for earnings shows a decline of 23.2% from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $6.2 billion, which indicates a drop of 3% from the figure reported in the year-ago quarter. KHC has delivered an earnings surprise of 10.2%, on average, in the trailing four quarters.
Monster Beverage Corporation MNST currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The company is likely to register bottom and top-line growth when it reports second-quarter 2026 numbers.
The Zacks Consensus Estimate for Monster Beverage’s quarterly revenues is pegged at $2.42 billion, indicating an increase of 14.6% from the figure reported in the prior-year quarter. The consensus estimate for MNST’s quarterly earnings of 59 cents per share implies a rise of 13.5% from the year-ago quarter’s level. MNST has a trailing four-quarter earnings surprise of 9.6%, on average.
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Keurig Dr Pepper, Inc (KDP): Free Stock Analysis Report
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Kraft Heinz Company (KHC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).