KDP · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

Keurig Dr Pepper Inc. · 2026-11-09 · Importance 58 · Surprise 56 · No source text

Consolidated gross margin declined 780 basis points to 46.6% in the first nine months of 2026, despite gross profit increasing 32.1% to $8,689 million. JDE Peet’s contributed 31 percentage points and legacy KDP sales growth contributed 10 percentage points to gross-profit growth, but the $361 million JDE Peet’s inventory step-up and unfavorable ingredient, material, and productivity changes partly offset those benefits. In the third quarter, gross margin was 48.0%, down 630 basis points year over year, while gross profit increased 50.6% to $3,525 million.

Key facts

• Keurig Dr Pepper's third-quarter 2026 gross profit increased 50.6% to $3,525 million from $2,340 million in the third quarter of 2025; JDE Peet's contributed 43 percentage points and legacy KDP net sales growth 8 percentage points. source
• Keurig Dr Pepper's gross profit increased 32.1% to $8,689 million in the first nine months of 2026; acquisition benefits (31 percentage points) and legacy net sales growth (10 percentage points) were partly offset by the JDE Peet's inventory step-up (5 percentage points) and ingredient, materials, and productivity changes (2 percentage points). source
• Keurig Dr Pepper's third-quarter 2026 gross margin was 48.0%, down 630 basis points from 54.3% in the third quarter of 2025. source
• Keurig Dr Pepper's first-nine-month 2026 gross margin was 46.6%, down 780 basis points from 54.4% in the first nine months of 2025. source

Impact estimates