KDP · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Keurig Dr Pepper Inc. · 2026-11-09 · Importance 25 · Surprise 32

The effective tax rate increased 100 basis points to 23.6% in the first nine months of 2026, compared with 22.6% a year earlier. A non-cash revaluation of state deferred tax liabilities following the JDE Peet’s acquisition added 150 basis points, and the comparison with prior-year purchased tax credits added 90 basis points; JV-related discrete tax impacts partly offset these items by 110 basis points. In the third quarter, the rate declined 80 basis points to 21.5%, principally because the income mix shifted toward lower-tax jurisdictions by 190 basis points, partly offset by a 140-basis-point comparison to prior-year tax credits.

Key facts

• Keurig Dr Pepper's third-quarter 2026 effective tax rate decreased 80 basis points to 21.5% from 22.3%, due to a favorable income mix shift (190 basis points), partly offset by the prior-year purchased-tax-credit comparison (140 basis points). source
• Keurig Dr Pepper's first-nine-month 2026 effective tax rate increased 100 basis points to 23.6% from 22.6%, primarily due to a JDE Peet's-related non-cash revaluation of state deferred tax liabilities (150 basis points) and the prior-year purchased-tax-credit comparison (90 basis points), partly offset by JV Investment and Pod Manufacturing JV tax impacts (110 basis points). source