Finance
Keurig Dr Pepper forecasts strong 2026 on JDE Peet’s boost despite cost pressures
Published by Global Banking & Finance Review®
Posted on February 24, 2026
3 min readLast updated: February 24, 2026
Quick Summary
Keurig Dr Pepper forecasts a strong 2026 as the JDE Peet’s acquisition boosts scale, guiding $25.9–$26.4B revenue and low double‑digit EPS. Despite higher coffee costs and tariffs, Q4 beat and funding updates lifted shares ~3%.
Keurig Dr Pepper Sees Robust 2026 as JDE Peet’s Deal Offsets Costs
2026 Outlook and JDE Peet’s Acquisition
Feb 24 (Reuters) - U.S. beverage maker Keurig Dr Pepper projected strong full-year results on Tuesday, betting on a boost from the pending acquisition of Dutch coffee and tea maker JDE Peet's, even as it navigates soaring coffee prices.
Cost Pressures and Coffee Prices
Keurig is nearing a roughly $18 billion takeover of JDE Peet's, which said on Tuesday that costs rose by 1.6 billion euros ($1.9 billion) in 2025 due to an "unprecedented" rise in prices of green coffee beans and other items.
Drivers of Green Coffee Inflation
Coffee prices have surged in recent years due to extreme weather that has reduced output. Also, commodity prices worldwide, from key metals to grains to coffee, have been on the rise for months after the U.S. imposed heavy tariffs on numerous imports.
Tariff Impacts on Q1
Near-Term Margin Headwinds
Keurig Chief Financial Officer Anthony DiSilvestro said the company expects its first-quarter profit to remain under pressure from headwinds related to increased coffee prices and tariff impacts, as well as increased investments.
Financing and Equity Commitments
Keurig, which on Monday secured an additional $1.5 billion in equity commitments from long-term investors to help fund the buyout, is betting that the deal would help expand its global coffee footprint and strengthen its position against market leader Nestlé.
Sales and Profit Guidance
The company now expects annual net sales in the range of $25.9 billion to $26.4 billion, and low-double-digit adjusted profit growth, including JDE Peet's, which is expected to add about $8.5 billion to $8.7 billion to sales starting from the second quarter.
Analysts were expecting full-year sales of $17.23 billion, and adjusted profit to be up 6.4%, according to data compiled by LSEG.
Share Price Reaction
The strong forecast, despite investor concerns of its high leverage due to the deal, helped shares of the company rise about 3%.
Debt, Equity and Assumed Bonds
Keurig plans to fund the deal with about $9 billion in new debt, $8.5 billion in equity and $5 billion in assumed JDE Peet’s bonds, leaving the combined company with projected leverage of around 4.5 times.
Analyst View on Value Accretion
"We think the JDE transaction is value accretive, but acknowledge it may take some time to realize that value," RBC Capital Markets analyst Nik Modi said.
Brand and Market Share
Keurig's popular soft drinks, including 7UP and Dr Pepper Zero, helped it gain market share during the reported quarter.
Refreshment vs. Coffee Growth
Quarterly sales in Keurig's domestic refreshment beverages segment — its largest revenue generator — jumped 11.5%, and sales in its coffee business rose 3.9%, compared with a year ago.
Fourth-Quarter Results
For the fourth quarter, the company posted net sales of $4.50 billion, beating estimates of $4.36 billion. It logged adjusted profit of 60 cents per share, edging past estimates of 59 cents per share.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath and Sahal Muhammed)
Key Takeaways
- •Keurig Dr Pepper projects a strong 2026, boosted by the pending JDE Peet’s acquisition.
- •Company guides to $25.9–$26.4B in 2026 net sales with low double‑digit adjusted profit growth.
- •Coffee price inflation and tariffs are expected to pressure near‑term margins.
- •Financing mix includes ~$9B new debt, ~$8.5B equity and ~$5B assumed JDE Peet’s bonds.
- •Q4 results topped estimates and shares rose about 3% on the outlook and deal progress.
Frequently Asked Questions about Keurig Dr Pepper forecasts strong 2026 on JDE Peet’s boost despite cost pressures
1What is the main topic?
Keurig Dr Pepper’s 2026 outlook improves on the pending JDE Peet’s acquisition, with higher sales and profit guidance despite cost pressures from coffee prices and tariffs.
2How will the JDE Peet’s deal affect results?
Management expects the acquisition to add significant sales starting in Q2 and support low double‑digit adjusted EPS growth by expanding KDP’s global coffee footprint.
3How is the acquisition being financed?
KDP plans to fund the deal with about $9B in new debt, $8.5B in equity commitments and roughly $5B in assumed JDE Peet’s bonds, targeting ~4.5x leverage post‑close.
