KDP · 8-K · 20261103PR000064

Operating Income and Margins

Keurig Dr Pepper Inc. · 2026-11-03 · Importance 63 · Surprise 64 · No source text

Third-quarter GAAP operating income rose 34.0% to $1.3 billion, while adjusted operating income increased 52.5% to $1.7 billion and represented 22.7% of sales. Adjusted operating income growth reflected sales growth and productivity savings, partly offset by inflation and higher SG&A, including marketing. Both GAAP and adjusted operating income included a $99 million tariff-refund benefit. Reported operating margin was 18.2%, compared with 23.1% a year earlier; adjusted margin was 22.7%, versus 25.3%.

Key facts

• Keurig Dr Pepper Inc. adjusted operating income increased 52.5% to $1.7 billion and was 22.7% of net sales in Q3 2026. source
• Keurig Dr Pepper Inc. GAAP operating income increased 34.0% to $1.3 billion in Q3 2026. source
• KDP's Q2 2026 reported income from operations was $628 million, with a reported operating margin of 8.6%. source
• Keurig Dr Pepper Inc. GAAP and adjusted operating income each included a $99 million benefit from tariff refunds in Q3 2026. source
• KDP's pro forma Q4 2025 Adjusted income from operations was $1,350 million, with an adjusted operating margin of 17.9%. source
• KDP's Q2 2026 Adjusted income from operations was $1,478 million, with an adjusted operating margin of 20.2%. source
• KDP's pro forma Q1 2026 Adjusted income from operations was $992 million, with an adjusted operating margin of 14.5%. source

Impact estimates