Revenue growth accelerated to 9.4% in 2026Q1, yet gross margins have steadily eroded from a 56.5% peak in 2023Q4 to 52.8% in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 16.94B | 16.6B | 15.35B | 14.81B | 14.06B | 12.68B | 11.62B | 11.12B | 7.44B | 6.69B | 6.44B | 6.28B | 6.12B | 6B | 6B | 5.9B | 5.64B | 5.53B | 5.71B | 5.75B | 4.74B | 3.21B | 3.06B |
| Revenue Growth % | 9.19% | 8.16% | 3.62% | 5.39% | 10.83% | 9.17% | 4.48% | 49.42% | 11.24% | 3.88% | 2.52% | 2.63% | 2.07% | 0.03% | 1.56% | 4.74% | 1.9% | -3.13% | -0.66% | 21.39% | 47.74% | 4.57% | - |
| Cost of Goods Sold | 7.83B | 7.9B | 6.82B | 6.73B | 6.73B | 5.71B | 5.13B | 4.78B | 3.56B | 2.69B | 2.58B | 2.56B | 2.49B | 2.5B | 2.5B | 2.48B | 2.24B | 2.23B | 2.59B | 2.62B | 1.99B | 1.12B | 1.05B |
| COGS % of Revenue | - | 47.59% | 44.44% | 45.46% | 47.91% | 44.99% | 44.17% | 42.97% | 47.84% | 40.28% | 40.09% | 40.74% | 40.7% | 41.67% | 41.7% | 42.1% | 39.8% | 40.39% | 45.36% | 45.53% | 42.11% | 34.95% | 34.29% |
| Gross Profit | 9.11B | 8.7B | 8.53B | 8.08B | 7.32B | 6.98B | 6.49B | 6.34B | 3.88B | 4B | 3.86B | 3.72B | 3.63B | 3.5B | 3.5B | 3.42B | 3.39B | 3.3B | 3.12B | 3.13B | 2.74B | 2.08B | 2.01B |
| Gross Margin % | 53.78% | 52.41% | 55.56% | 54.54% | 52.09% | 55.01% | 55.83% | 57.03% | 52.16% | 59.72% | 59.91% | 59.26% | 59.3% | 58.33% | 58.3% | 57.9% | 60.2% | 59.61% | 54.64% | 54.47% | 57.89% | 65.05% | 65.71% |
| Gross Profit Growth % | - | 2.02% | 5.56% | 10.34% | 4.96% | 7.57% | 2.27% | 63.37% | -2.83% | 3.55% | 3.63% | 2.56% | 3.77% | 0.09% | 2.25% | 0.74% | 2.91% | 5.67% | -0.35% | 14.23% | 31.46% | 3.53% | - |
| Operating Expenses | 5.5B | 5.05B | 5.94B | 4.89B | 4.72B | 4.08B | 4.01B | 3.96B | 2.65B | 2.61B | 2.42B | 2.42B | 2.45B | 2.45B | 2.4B | 2.39B | 2.37B | 2.21B | 3.29B | 2.13B | 1.72B | 1.18B | 1.18B |
| OpEx % of Revenue | - | 30.43% | 38.68% | 33% | 33.56% | 32.19% | 34.48% | 35.65% | 35.54% | 38.97% | 37.66% | 38.6% | 40.03% | 40.89% | 40.08% | 40.56% | 42.02% | 39.99% | 57.58% | 37% | 36.39% | 36.79% | 38.5% |
| Selling, General & Admin | 5.46B | 5.05B | 5.01B | 4.91B | 4.64B | 4.15B | 3.98B | 3.96B | 2.63B | 2.56B | 2.33B | 2.31B | 2.33B | 2.33B | 2.27B | 2.26B | 2.23B | 2.13B | 2.08B | 2.02B | 1.66B | 1.18B | 1.14B |
| SG&A % of Revenue | - | 30.43% | 32.66% | 33.16% | 33.04% | 32.74% | 34.24% | 35.63% | 35.41% | 38.21% | 36.16% | 36.82% | 38.13% | 38.82% | 37.83% | 38.23% | 39.62% | 38.6% | 36.34% | 35.11% | 35.04% | 36.79% | 37.03% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 925M | -24M | 73M | -70M | 28M | 2M | 10M | 51M | 96M | 112M | 116M | 124M | 135M | 137M | 135M | 77M | 1.21B | 109M | 64M | 0 | 45M |
| Operating Income | 3.61B | 3.65B | 2.59B | 3.19B | 2.6B | 2.89B | 2.48B | 2.38B | 1.24B | 1.39B | 1.43B | 1.3B | 1.18B | 1.05B | 1.09B | 1.02B | 1.02B | 1.08B | -168M | 1B | 1.02B | 906M | 834M |
| Operating Margin % | 21.3% | 21.97% | 16.88% | 21.55% | 18.53% | 22.82% | 21.35% | 21.38% | 16.62% | 20.75% | 22.25% | 20.66% | 19.28% | 17.44% | 18.22% | 17.35% | 18.19% | 19.62% | -2.94% | 17.47% | 21.5% | 28.27% | 27.21% |
| Operating Income Growth % | - | 40.8% | -18.83% | 22.53% | -9.99% | 16.69% | 4.29% | 92.24% | -10.88% | -3.14% | 10.4% | 10% | 12.81% | -4.21% | 6.64% | -0.1% | -5.53% | 745.83% | -116.73% | -1.38% | 12.36% | 8.63% | - |
| EBITDA | 3.92B | 4.4B | 3.32B | 3.91B | 3.31B | 3.6B | 3.13B | 3.04B | 1.67B | 1.62B | 1.66B | 1.52B | 1.42B | 1.28B | 1.33B | 1.26B | 1.25B | 1.29B | 27M | 1.17B | 1.16B | 985M | 870M |
| EBITDA Margin % | 23.14% | 26.51% | 21.65% | 26.41% | 23.58% | 28.4% | 26.97% | 27.3% | 22.45% | 24.17% | 25.73% | 24.28% | 23.12% | 21.34% | 22.22% | 21.28% | 22.23% | 23.36% | 0.47% | 20.41% | 24.44% | 30.73% | 28.38% |
| EBITDA Growth % | 16.94% | 32.4% | -15.03% | 18.04% | -8% | 14.97% | 3.19% | 81.69% | 3.34% | -2.41% | 8.66% | 7.77% | 10.55% | -3.9% | 6.05% | 0.24% | -3.02% | 4685.19% | -97.7% | 1.38% | 17.46% | 13.22% | - |
| D&A (Non-Cash Add-back) | 430M | 753M | 733M | 720M | 709M | 708M | 653M | 658M | 434M | 229M | 224M | 227M | 235M | 234M | 240M | 232M | 228M | 207M | 195M | 169M | 139M | 79M | 0 |
| EBIT | 3.27B | 3.44B | 2.65B | 3.25B | 2.41B | 3.3B | 2.36B | 2.35B | 1.24B | 1.34B | 1.43B | 1.3B | 1.18B | 665M | 1.1B | 1.04B | 949M | 1.11B | -118M | 1B | 1.04B | 916M | 870M |
| Net Interest Income | -889M | -754M | -684M | -596M | -468M | -525M | -597M | -647M | -446M | -165M | -137M | -124M | -115M | -123M | -130M | -122M | -138M | -193M | -225M | -189M | -211M | -170M | -177M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3M | 3M | 2M | 2M | 2M | 2M | 3M | 3M | 4M | 32M | 64M | 46M | 40M | 0 |
| Interest Expense | 889M | 754M | 684M | 596M | 468M | 525M | 597M | 647M | 446M | 168M | 140M | 126M | 117M | 125M | 132M | 125M | 141M | 197M | 257M | 253M | 257M | 210M | 177M |
| Other Income/Expense | -1.23B | -961M | -677M | -435M | -886M | -96M | -727M | -684M | -446M | -217M | -152M | -114M | -106M | -503M | -114M | -98M | -203M | -215M | -205M | -185M | -210M | -98M | -118M |
| Pretax Income | 2.38B | 2.69B | 1.91B | 2.76B | 1.72B | 2.8B | 1.75B | 1.69B | 791M | 1.17B | 1.28B | 1.18B | 1.07B | 543M | 978M | 926M | 822M | 870M | -373M | 819M | 808M | 808M | 716M |
| Pretax Margin % | 14.07% | 16.18% | 12.47% | 18.61% | 12.23% | 22.06% | 15.09% | 15.23% | 10.63% | 17.5% | 19.89% | 18.85% | 17.55% | 9.05% | 16.31% | 15.69% | 14.58% | 15.73% | -6.53% | 14.25% | 17.06% | 25.21% | 23.36% |
| Income Tax | 552M | 608M | 473M | 576M | 284M | 653M | 428M | 440M | 202M | 95M | 434M | 420M | 371M | -81M | 349M | 320M | 294M | 315M | -61M | 322M | 298M | 321M | 270M |
| Effective Tax Rate % | 23.15% | 22.63% | 24.71% | 20.89% | 16.52% | 23.34% | 24.42% | 25.97% | 25.54% | 8.11% | 33.88% | 35.47% | 34.54% | -14.92% | 35.69% | 34.56% | 35.77% | 36.21% | 16.35% | 39.32% | 36.88% | 39.73% | 37.71% |
| Net Income | 1.83B | 2.08B | 1.44B | 2.18B | 1.44B | 2.15B | 1.32B | 1.25B | 586M | 1.08B | 847M | 764M | 703M | 624M | 629M | 606M | 528M | 555M | -312M | 497M | 510M | 477M | 446M |
| Net Margin % | 10.81% | 12.52% | 9.39% | 14.72% | 10.22% | 16.92% | 11.4% | 11.28% | 7.87% | 16.08% | 13.15% | 12.16% | 11.49% | 10.41% | 10.49% | 10.27% | 9.37% | 10.03% | -5.46% | 8.65% | 10.77% | 14.88% | 14.55% |
| Net Income Growth % | 21.81% | 44.27% | -33.93% | 51.88% | -33.08% | 61.96% | 5.66% | 113.99% | -45.54% | 27.04% | 10.86% | 8.68% | 12.66% | -0.79% | 3.8% | 14.77% | -4.86% | 277.88% | -162.78% | -2.55% | 6.92% | 6.95% | - |
| Net Income (Continuing) | 1.83B | 2.08B | 1.44B | 2.18B | 1.44B | 2.15B | 1.32B | 1.25B | 589M | 1.08B | 847M | 764M | 703M | 624M | 629M | 606M | 528M | 555M | -312M | 497M | 510M | 487M | 446M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3.92B | 0 | 0 | 0 | -1M | 0 | 1M | 0 | 0 | 0 | 0 | 0 | 12.44M | 11.04M | 9.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.34 | 1.53 | 1.05 | 1.55 | 1.01 | 1.50 | 0.93 | 0.88 | 0.53 | 5.89 | 4.54 | 3.97 | 3.56 | 3.05 | 2.96 | 2.74 | 2.17 | 2.17 | -1.23 | 1.79 | 2.01 | 1.88 | 1.76 |
| EPS Growth % | 22.73% | 45.71% | -32.26% | 53.47% | -32.67% | 61.29% | 5.68% | 66.04% | -91% | 29.74% | 14.36% | 11.52% | 16.72% | 3.04% | 8.03% | 26.27% | 0% | 276.42% | -168.72% | -10.95% | 6.91% | 6.82% | - |
| EPS (Basic) | - | 1.53 | 1.06 | 1.56 | 1.01 | 1.52 | 0.94 | 0.89 | 0.54 | 5.91 | 4.57 | 4.00 | 3.59 | 3.08 | 2.99 | 2.77 | 2.19 | 2.18 | -1.23 | 1.79 | 2.01 | 1.88 | 1.76 |
| Diluted Shares Outstanding | 1.36B | 1.36B | 1.37B | 1.41B | 1.43B | 1.43B | 1.42B | 1.42B | 1.1B | 182.8M | 186.6M | 192.4M | 192.96M | 204.5M | 205.29M | 221.2M | 242.6M | 255.2M | 254M | 253.5M | 253.5M | 253.7M | 253.7M |
| Basic Shares Outstanding | 1.36B | 1.36B | 1.36B | 1.4B | 1.42B | 1.42B | 1.41B | 1.41B | 1.09B | 182M | 185.4M | 190.9M | 192.96M | 202.9M | 205.29M | 218.7M | 240.4M | 254.2M | 254M | 253.5M | 253.5M | 253.7M | 253.7M |
| Dividend Payout Ratio | - | 60.13% | 82.86% | 52.36% | 75.21% | 44.5% | 63.85% | 67.3% | 39.59% | 38.48% | 45.57% | 46.47% | 45.09% | 48.4% | 45.15% | 41.42% | 36.74% | - | - | 42.86% | 15.69% | - | - |
Margin compression from input costs
According to the most recent quarterly financial data, KDP's revenue growth has accelerated to 9.4% in 2026Q1, marking a notable departure from the low single-digit growth rates observed throughout 2024, suggesting that recent strategic distribution partnerships are successfully driving top-line expansion across the company's core segments.
The recent uptick in revenue growth appears to be supported by the company's ability to leverage its distribution network for third-party brands. Investors should monitor whether this acceleration is sustainable or if it reflects temporary promotional activity that may eventually pressure long-term organic growth profiles.
As reported in the company's income statements, gross margins have trended downward from a peak of 56.5% in 2023Q4 to 52.8% in 2026Q1, indicating that KDP is facing persistent challenges in maintaining pricing power against rising commodity costs and shifting product mix within its coffee ecosystem.
The consistent erosion of gross margins suggests that the company's ability to pass through inflationary costs to consumers may be reaching a ceiling. This trend warrants further investigation into whether the shift toward lower-margin partner brands is permanently altering the company's historical profitability profile.
Based on the provided financial figures, KDP's operating margin contracted to 19.0% in 2026Q1, down from the 23-24% range seen in previous periods, which suggests that the company is struggling to achieve meaningful operating leverage despite the recent acceleration in top-line revenue growth.
The inability to scale operating income in proportion to revenue growth implies that SG&A expenses are rising at a faster pace than the company's gross profit. This may indicate that the cost of acquiring and maintaining distribution partnerships is currently outpacing the incremental profit generated by those relationships.
As evidenced by the significant earnings swing in 2024Q4, where net income dropped to a loss of $144 million, KDP's reported net income appears highly sensitive to non-operating items and periodic adjustments, complicating the assessment of the company's underlying core earnings power for long-term investors.
The sharp decline in EPS during 2024Q4, followed by a recovery, suggests that investors should focus on normalized operating metrics rather than headline net income. The consistent level of stock-based compensation, averaging around $25 million per quarter, represents a steady, albeit manageable, dilution factor that should be factored into valuation models.
While management emphasizes the strength of its distribution-as-a-service model, the recent income statement data suggests that this strategy may be masking underlying weakness in the core coffee business, as evidenced by the 47.4% year-over-year decline in EPS reported in the most recent 2026Q1 period.
Short-sellers might argue that the reliance on third-party distribution is a defensive move to offset stagnation in the Keurig brewer installed base. If the company cannot improve its operating margins while scaling these new partnerships, the current valuation may be vulnerable to a downward re-rating.
Quick answers to the most common questions about buying KDP stock.
For fiscal year 2025, Keurig Dr Pepper Inc. (KDP) reported total revenue of $16.60B. This represents a 441.7% increase compared to $3.06B in 2004.
Keurig Dr Pepper Inc. (KDP) is profitable, generating $2.08B in net income for the fiscal year ending 2025 with a net profit margin of 12.5%.
Keurig Dr Pepper Inc. (KDP) reported an operating income of $3.65B, resulting in an operating profit margin of 22.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Keurig Dr Pepper Inc. (KDP) generated $8.70B in gross profit for the year, representing a gross profit margin of 52.4%. This demonstrates the company's core pricing power and production efficiency.