With a market cap of $37.5 billion, Keurig Dr Pepper Inc. (KDP) is a leading beverage and single-serve brewing company operating through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. It manufactures and distributes branded beverages, concentrates, and Keurig brewing systems and K-Cup pods, selling a large portfolio of well-known brands to retail, foodservice, and direct-to-consumer channels.
Shares of the Burlington, Massachusetts-based company have underperformed the broader market over the past 52 weeks. KDP stock has fallen 14.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 15%. Moreover, shares of the company are down 4.6% on a YTD basis, compared to SPX’s 1.9% rise.
Narrowing the focus, shares of Keurig Dr Pepper have also lagged behind the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 4.5% return over the past 52 weeks.
Shares of Keurig Dr Pepper climbed 7.6% on Oct. 27, 2025, after the company reported strong Q3 2025 results, with net sales rising 10.7% to $4.31 billion and adjusted EPS increasing 5.9% to $0.54. Growth was driven by robust performance in U.S. Refreshment Beverages, where sales surged 14.4%, aided by the GHOST acquisition contributing 7.2 percentage points to volume growth. Investor confidence was further boosted as KDP raised its full-year constant currency net sales growth outlook to a high-single-digit range.
For the fiscal year that ended in December 2025, analysts expect KDP’s adjusted EPS to grow 6.3% year-over-year to $2.04. The company’s earnings surprise history is strong. It beat or met the consensus estimates in the last four quarters.
Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and one “Strong Sell.”
This configuration is less bullish than it was three months ago, when KDP had nine “Strong Buys” in total.
On Dec. 15, 2025, Piper Sandler raised its price target on Keurig Dr Pepper to $38 while maintaining an “Overweight” rating on the stock.
The mean price target of $34.47 represents a 29.1% premium to KDP’s current price levels. The Street-high price target of $42 suggests a 57.2% potential upside.
