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Coca-Cola (KO) Up 3.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Coca-Cola (KO - Free Report) . Shares have added about 3.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Coca-Cola due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for CocaCola Company (The) before we dive into how investors and analysts have reacted as of late.
Coca-Cola has reported first-quarter 2026 results, with the bottom and top lines surpassing the Zacks Consensus Estimate. The company’s revenues and earnings per share (EPS) improved year over year. The results have benefited from continued business momentum, aided by enhanced pricing across markets. This quarter’s results highlighted the strength of KO’s resilient, all-weather strategy.
Coca-Cola has reported a comparable EPS of 86 cents in the first quarter, up 18% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 81 cents. Favorable currency translations aided the comparable EPS by three percentage points. Comparable currency-neutral EPS rose 15% year over year.
Revenues of $12.47 billion grew 12% year over year and came above the Zacks Consensus Estimate of $12.30 billion. Organic revenues on an adjusted basis rose 10% from the prior-year quarter, led by growth across all operating segments. In the first quarter of 2026, KO gained a value share in the total non-alcoholic ready-to-drink beverages category.
Detailed Picture of KO’s Q1 Volume & Pricing
In the reported quarter, concentrate sales grew 8% year over year, while the price/mix improved 2%. Concentrate sales were five points ahead of unit case volume, mainly owing to six additional days in the reported quarter, somewhat offset by the timing of concentrate shipments. Coca-Cola’s total unit case volume rose 3% year over year in the first quarter, led by growth in China, the United States and India.
Our model predicted year-over-year organic revenue growth of 7.1% for the first quarter, with a 3.6% increase in the price/mix and a 3.4% rise in the concentrate sales volume.
Regarding the cluster-category performance, the unit case volume grew 2% year over year for the sparkling soft drinks category. The trademark Coca-Cola’s unit volume rose 2%, buoyed by growth in Asia Pacific and North America.
Volume for juice, value-added dairy and plant-based beverages was down 1% in the first quarter, as increases in Asia Pacific were more than offset by decreases in Europe, the Middle East & Africa (EMEA).
Peek Into KO’s Segmental Details
Reported revenues rose 12% year over year for North America, 6% for the Asia Pacific, 14% for Latin America, 13% for EMEA and 12% for Bottling Investments.
Organic revenues jumped 12% year over year in North America, 5% in the Asia Pacific, 9% in Latin America, 11% in EMEA and 10% in Bottling Investments.
Analyzing Coca-Cola’s Q1 Margins
In dollar terms, the operating income rose 19% year over year to $1.84 billion, including a seven-point impact of currency headwinds. Comparable currency-neutral operating income advanced 12% on strong organic revenue growth across segments.
The operating margin of 35% in the first quarter expanded 210 basis points (bps) from the prior-year quarter, including items affecting comparability and currency tailwinds. The comparable operating margin expanded 70 bps to 34.5%, backed by organic revenue growth and reduced operating costs, partly offset by increased input costs and higher marketing investments.
KO’s Guidance for 2026
For 2026, Coca-Cola still anticipates organic revenue growth on an adjusted basis of 4-5%. Comparable net revenues are expected to include a 1-2% currency tailwind based on current rates and hedge positions. The guidance also includes a 4% negative impact of acquisitions and divestitures. The company anticipates an underlying effective tax rate of 19.9% for 2026.
Comparable currency-neutral EPS for 2026 is expected to increase 6-7% year over year. The company anticipates comparable EPS growth of 8-9% for 2026 from the $3.00 reported in 2025. Comparable EPS growth is expected to include a currency tailwind of 3%. The EPS guidance also includes a 1% negative impact of acquisitions and divestitures. Management still envisions an adjusted free cash flow of $12.2 billion for 2026, including $14.4 billion in cash flow from operations. Capital expenditure is still likely to be $2.2 billion.
For second-quarter 2026, comparable revenues and EPS are expected to include currency tailwinds of 1% and 3%, respectively. Both metrics are also estimated to include a 1% headwind from acquisitions and divestitures.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Coca-Cola has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Coca-Cola has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Coca-Cola is part of the Zacks Beverages - Soft drinks industry. Over the past month, Keurig Dr Pepper, Inc (KDP - Free Report) , a stock from the same industry, has gained 4%. The company reported its results for the quarter ended March 2026 more than a month ago.
Keurig Dr Pepper reported revenues of $3.98 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $0.39 for the same period compares with $0.42 a year ago.
Keurig Dr Pepper is expected to post earnings of $0.55 per share for the current quarter, representing a year-over-year change of +12.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Keurig Dr Pepper. Also, the stock has a VGM Score of D.
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Coca-Cola (KO) Up 3.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Coca-Cola (KO - Free Report) . Shares have added about 3.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Coca-Cola due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for CocaCola Company (The) before we dive into how investors and analysts have reacted as of late.
Coca-Cola Q1 Earnings Beat, Organic Revenues Rise 10%
Coca-Cola has reported first-quarter 2026 results, with the bottom and top lines surpassing the Zacks Consensus Estimate. The company’s revenues and earnings per share (EPS) improved year over year. The results have benefited from continued business momentum, aided by enhanced pricing across markets. This quarter’s results highlighted the strength of KO’s resilient, all-weather strategy.
Coca-Cola has reported a comparable EPS of 86 cents in the first quarter, up 18% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 81 cents. Favorable currency translations aided the comparable EPS by three percentage points. Comparable currency-neutral EPS rose 15% year over year.
Revenues of $12.47 billion grew 12% year over year and came above the Zacks Consensus Estimate of $12.30 billion. Organic revenues on an adjusted basis rose 10% from the prior-year quarter, led by growth across all operating segments. In the first quarter of 2026, KO gained a value share in the total non-alcoholic ready-to-drink beverages category.
Detailed Picture of KO’s Q1 Volume & Pricing
In the reported quarter, concentrate sales grew 8% year over year, while the price/mix improved 2%. Concentrate sales were five points ahead of unit case volume, mainly owing to six additional days in the reported quarter, somewhat offset by the timing of concentrate shipments. Coca-Cola’s total unit case volume rose 3% year over year in the first quarter, led by growth in China, the United States and India.
Our model predicted year-over-year organic revenue growth of 7.1% for the first quarter, with a 3.6% increase in the price/mix and a 3.4% rise in the concentrate sales volume.
Regarding the cluster-category performance, the unit case volume grew 2% year over year for the sparkling soft drinks category. The trademark Coca-Cola’s unit volume rose 2%, buoyed by growth in Asia Pacific and North America.
Volume for juice, value-added dairy and plant-based beverages was down 1% in the first quarter, as increases in Asia Pacific were more than offset by decreases in Europe, the Middle East & Africa (EMEA).
Peek Into KO’s Segmental Details
Reported revenues rose 12% year over year for North America, 6% for the Asia Pacific, 14% for Latin America, 13% for EMEA and 12% for Bottling Investments.
Organic revenues jumped 12% year over year in North America, 5% in the Asia Pacific, 9% in Latin America, 11% in EMEA and 10% in Bottling Investments.
Analyzing Coca-Cola’s Q1 Margins
In dollar terms, the operating income rose 19% year over year to $1.84 billion, including a seven-point impact of currency headwinds. Comparable currency-neutral operating income advanced 12% on strong organic revenue growth across segments.
The operating margin of 35% in the first quarter expanded 210 basis points (bps) from the prior-year quarter, including items affecting comparability and currency tailwinds. The comparable operating margin expanded 70 bps to 34.5%, backed by organic revenue growth and reduced operating costs, partly offset by increased input costs and higher marketing investments.
KO’s Guidance for 2026
For 2026, Coca-Cola still anticipates organic revenue growth on an adjusted basis of 4-5%. Comparable net revenues are expected to include a 1-2% currency tailwind based on current rates and hedge positions. The guidance also includes a 4% negative impact of acquisitions and divestitures. The company anticipates an underlying effective tax rate of 19.9% for 2026.
Comparable currency-neutral EPS for 2026 is expected to increase 6-7% year over year. The company anticipates comparable EPS growth of 8-9% for 2026 from the $3.00 reported in 2025. Comparable EPS growth is expected to include a currency tailwind of 3%. The EPS guidance also includes a 1% negative impact of acquisitions and divestitures. Management still envisions an adjusted free cash flow of $12.2 billion for 2026, including $14.4 billion in cash flow from operations. Capital expenditure is still likely to be $2.2 billion.
For second-quarter 2026, comparable revenues and EPS are expected to include currency tailwinds of 1% and 3%, respectively. Both metrics are also estimated to include a 1% headwind from acquisitions and divestitures.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Coca-Cola has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Coca-Cola has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Coca-Cola is part of the Zacks Beverages - Soft drinks industry. Over the past month, Keurig Dr Pepper, Inc (KDP - Free Report) , a stock from the same industry, has gained 4%. The company reported its results for the quarter ended March 2026 more than a month ago.
Keurig Dr Pepper reported revenues of $3.98 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $0.39 for the same period compares with $0.42 a year ago.
Keurig Dr Pepper is expected to post earnings of $0.55 per share for the current quarter, representing a year-over-year change of +12.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Keurig Dr Pepper. Also, the stock has a VGM Score of D.