Basic EPS reflects net income attributable to common stockholders after consideration of participating securities. The Convertible Preferred Stock is a participating security for purposes of calculating EPS. The Preferred Investors are entitled to participate in dividends declared or paid on the common shares on an as-converted basis (provided that any such dividends on the common stock on an as-converted basis received by Preferred Investors will reduce, on a dollar-for-dollar basis, the next preferred dividend such Preferred Investors are entitled to otherwise receive), and therefore, beginning in the second quarter of 2026, net income attributable to common shareholders is computed under the two-class method.


	Second Quarter				First Six Months
(in millions, except per share data)	2026		2025		2026		2025
Net income attributable to KDP	$	142	$	547	$	412	$	1,064
Less: Net income allocated to Preferred Investors(1)	82		—		82		—
Net income attributable to common shareholders	$	60	$	547	$	330	$	1,064

Weighted average common shares outstanding	1,360.6		1,358.3		1,359.9		1,357.7
Dilutive effect of stock-based awards	3.9		4.5		4.3		4.9
Weighted average common shares outstanding and common stock equivalents	1,364.5		1,362.8		1,364.2		1,362.6

Basic EPS	$	0.04	$	0.40	$	0.24	$	0.78
Diluted EPS	0.04		0.40		0.24		0.78

Anti-dilutive shares excluded from the diluted weighted average shares outstanding calculation	1.6		0.4		2.1		0.4

(1)For the periods presented, the preferred dividend rate was determined to be the greater amount used to determine the net income allocated to the Preferred Investors.