Keurig Dr Pepper Inc. stock research
FY2025 Q4
Keurig Dr Pepper (KDP) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, but gross margin declined. The decrease in gross margin indicates that cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, but gross margin declined. The decrease in gross margin indicates that cost of revenue grew at a faster pace than revenue.
- The primary observable driver of the margin change is the relationship between revenue and cost of revenue; cost of revenue increased more rapidly than revenue, compressing gross margin.
- Sequentially, gross margin weakened from the prior quarter, even as revenue and gross profit were higher. Compared to the same quarter last year, gross margin was also lower, with revenue and gross profit up but cost of revenue rising more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.8%
Gross profit
$2.4B
Revenue
$4.5B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-2.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $3.6B | $2.0B | $1.6B | 54.6% |
| Jun 30, 2025 | $4.2B | $2.3B | $1.9B | 54.2% |
| Sep 30, 2025 | $4.3B | $2.3B | $2.0B | 54.3% |
| Dec 31, 2025 | $4.5B | $2.4B | $2.1B | 53.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.6 pts
Year-over-year change
Dec 31, 2024
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin change is the relationship between revenue and cost of revenue; cost of revenue increased more rapidly than revenue, compressing gross margin.
Sequentially, gross margin weakened from the prior quarter, even as revenue and gross profit were higher. Compared to the same quarter last year, gross margin was also lower, with revenue and gross profit up but cost of revenue rising more sharply.
Monitor the relative growth rates of revenue and cost of revenue, as any sustained disparity could further affect gross margin.