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Coca-Cola Q2 Earnings & Sales Beat Estimates on Volume Growth
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Key Takeaways
Coca-Cola's Q2 EPS rose 11% to 97 cents, while revenues increased 7% to $13.38 billion.
Global unit case volume grew 5%, led by 16% growth in Coca-Cola Zero Sugar and broad demand.
KO raised its 2026 organic revenue growth forecast to 5% and earnings growth to 9-10%.
The Coca-Cola Company (KO - Free Report) has reported second-quarter 2026 results, with the top and bottom 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 97 cents in the second quarter, up 11% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 92 cents by 5.4%. Favorable currency translations aided the comparable EPS by two percentage points. Comparable currency-neutral EPS rose 9% year over year.
Revenues of $13.38 billion grew 7% year over year and beat the Zacks Consensus Estimate of $13.06 billion by 2.5%. The upside reflected broad-based demand, with global unit case volume up 5%. Organic revenues increased 6%, supported by a 4% rise in concentrate sales and 2% growth in price/mix. In the second quarter of 2026, the company also gained value share in total non-alcoholic ready-to-drink beverages.
Our model predicted year-over-year organic revenue growth of 3.9% for the second quarter, with a 0.9% increase in the price/mix and a 3% rise in the concentrate sales volume.
Shares of Coca-Cola gained 4% in the pre-market trading session following the solid results in the second quarter. The Zacks Rank #3 (Hold) stock has risen 6.6% in the past three months compared with the industry’s 5.1% growth.
Image Source: Zacks Investment Research
KO's Volume & Pricing Momentum
In the reported quarter, trademark Coca-Cola volume increased 5% across all geographic operating segments. Coca-Cola Zero Sugar advanced 16%, while Diet Coke/Coca-Cola Light rose 7%. Sparkling flavors grew 4%, led primarily by the Asia Pacific.
Juice, value-added dairy and plant-based beverages increased 2%. Water, sports, coffee and tea volume rose 6%, including 6% growth in water and 5% growth in sports drinks. Coffee declined 2%, while tea advanced 6%.
CocaCola Company (The) Price, Consensus and EPS Surprise
North America revenues increased 7%, with organic revenues also up 7%. Unit case volume grew 3% and price/mix advanced 4%, while comparable currency-neutral operating income climbed 12% on organic growth and lower operating expenses.
Latin America revenues jumped 16%, aided by an 11% currency benefit, while organic revenues rose 5%. EMEA revenues increased 2% and organic revenues grew 3%. The Asia Pacific revenues inched up 1% as 11% concentrate-sales growth was largely offset by a 9% decline in price/mix. Bottling Investments revenues rose 8%.
Regional profit trends were mixed. Comparable currency-neutral operating income increased 75% in Bottling Investments and 4% in Latin America, but declined 5% in EMEA. The Asia Pacific was flat on this basis as organic growth and lower operating expenses were offset by higher input costs and increased marketing investments.
Analyzing Coca-Cola’s Q2 Margins
In dollar terms, the operating income rose 9% year over year to $4.67 billion. The reported operating margin widened 77 basis points (bps) to 34.9%, while the comparable operating margin expanded 86 basis points to 35.6%.
Comparable currency-neutral operating income rose 6%. Organic revenue growth, lower operating expenses and currency tailwinds supported profitability, partly offset by higher input costs and increased marketing investments. The comparable gross margin improved to 63.4% from 62.2% a year earlier.
Our model predicted the second-quarter operating margin to expand 30 bps year over year to 35%, driven by flat gross margin and a 40-bps decline in the SG&A expense rate.
KO Raises Its 2026 Outlook
For 2026, Coca-Cola expects 2026 organic revenue growth of 5% compared with its prior forecast of 4-5%. Comparable currency-neutral earnings, excluding acquisitions and divestitures, are projected to rise 7-8%, up from 6-7%.
Comparable earnings are expected to grow 9-10% from the 2025 base of $3 versus the previous outlook of 8-9% growth. The forecast includes a 3% currency tailwind and about a 1% headwind from acquisitions and divestitures.
Management envisions an adjusted free cash flow of $12.4 billion for 2026, including $14.6 billion in cash flow from operations. Capital expenditure is still likely to be $2.2 billion.
For the third quarter of 2026, Coca-Cola expects comparable net revenues to include a 1% currency tailwind and a roughly 1% headwind from acquisitions and divestitures. Comparable earnings are projected to receive a 3% currency benefit, with minimal pressure from portfolio changes.
Stocks to Consider
Fomento Economico Mexicano (FMX - Free Report) is a leading Latin American beverage and retail company that operates Coca-Cola bottling businesses, OXXO convenience stores, health and beauty outlets, fuel stations and digital financial services across multiple countries. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FMX’s current financial-year sales and earnings indicates growth of 17.3% and 131% from the prior-year reported level. FMX delivered a trailing four-quarter negative earnings surprise of 17%, on average.
The Vita Coco Company Inc. (COCO - Free Report) develops, markets and distributes coconut water and other beverage products, led by the Vita Coco brand. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Vita Coco’s current financial-year sales and earnings is expected to rise 31.7% and 30%, respectively, from the year-ago reported figures. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
Primo Brands Corporation (PRMB - Free Report) is a leading North American branded beverage company focused on healthy hydration. The company currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Primo Brands’ current financial-year sales indicates growth of 1.6% from the year-ago number. PRMB delivered an average earnings surprise of 1.4% in the trailing four quarters.
View the Zacks #1 Rank List
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Coca-Cola Q2 Earnings & Sales Beat Estimates on Volume Growth
Key Takeaways
The Coca-Cola Company (KO - Free Report) has reported second-quarter 2026 results, with the top and bottom 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 97 cents in the second quarter, up 11% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 92 cents by 5.4%. Favorable currency translations aided the comparable EPS by two percentage points. Comparable currency-neutral EPS rose 9% year over year.
Revenues of $13.38 billion grew 7% year over year and beat the Zacks Consensus Estimate of $13.06 billion by 2.5%. The upside reflected broad-based demand, with global unit case volume up 5%. Organic revenues increased 6%, supported by a 4% rise in concentrate sales and 2% growth in price/mix. In the second quarter of 2026, the company also gained value share in total non-alcoholic ready-to-drink beverages.
Our model predicted year-over-year organic revenue growth of 3.9% for the second quarter, with a 0.9% increase in the price/mix and a 3% rise in the concentrate sales volume.
Shares of Coca-Cola gained 4% in the pre-market trading session following the solid results in the second quarter. The Zacks Rank #3 (Hold) stock has risen 6.6% in the past three months compared with the industry’s 5.1% growth.
Image Source: Zacks Investment Research
KO's Volume & Pricing Momentum
In the reported quarter, trademark Coca-Cola volume increased 5% across all geographic operating segments. Coca-Cola Zero Sugar advanced 16%, while Diet Coke/Coca-Cola Light rose 7%. Sparkling flavors grew 4%, led primarily by the Asia Pacific.
Juice, value-added dairy and plant-based beverages increased 2%. Water, sports, coffee and tea volume rose 6%, including 6% growth in water and 5% growth in sports drinks. Coffee declined 2%, while tea advanced 6%.
CocaCola Company (The) Price, Consensus and EPS Surprise
CocaCola Company (The) price-consensus-eps-surprise-chart | CocaCola Company (The) Quote
KO's Regional Revenue Picture
North America revenues increased 7%, with organic revenues also up 7%. Unit case volume grew 3% and price/mix advanced 4%, while comparable currency-neutral operating income climbed 12% on organic growth and lower operating expenses.
Latin America revenues jumped 16%, aided by an 11% currency benefit, while organic revenues rose 5%. EMEA revenues increased 2% and organic revenues grew 3%. The Asia Pacific revenues inched up 1% as 11% concentrate-sales growth was largely offset by a 9% decline in price/mix. Bottling Investments revenues rose 8%.
Regional profit trends were mixed. Comparable currency-neutral operating income increased 75% in Bottling Investments and 4% in Latin America, but declined 5% in EMEA. The Asia Pacific was flat on this basis as organic growth and lower operating expenses were offset by higher input costs and increased marketing investments.
Analyzing Coca-Cola’s Q2 Margins
In dollar terms, the operating income rose 9% year over year to $4.67 billion. The reported operating margin widened 77 basis points (bps) to 34.9%, while the comparable operating margin expanded 86 basis points to 35.6%.
Comparable currency-neutral operating income rose 6%. Organic revenue growth, lower operating expenses and currency tailwinds supported profitability, partly offset by higher input costs and increased marketing investments. The comparable gross margin improved to 63.4% from 62.2% a year earlier.
Our model predicted the second-quarter operating margin to expand 30 bps year over year to 35%, driven by flat gross margin and a 40-bps decline in the SG&A expense rate.
KO Raises Its 2026 Outlook
For 2026, Coca-Cola expects 2026 organic revenue growth of 5% compared with its prior forecast of 4-5%. Comparable currency-neutral earnings, excluding acquisitions and divestitures, are projected to rise 7-8%, up from 6-7%.
Comparable earnings are expected to grow 9-10% from the 2025 base of $3 versus the previous outlook of 8-9% growth. The forecast includes a 3% currency tailwind and about a 1% headwind from acquisitions and divestitures.
Management envisions an adjusted free cash flow of $12.4 billion for 2026, including $14.6 billion in cash flow from operations. Capital expenditure is still likely to be $2.2 billion.
For the third quarter of 2026, Coca-Cola expects comparable net revenues to include a 1% currency tailwind and a roughly 1% headwind from acquisitions and divestitures. Comparable earnings are projected to receive a 3% currency benefit, with minimal pressure from portfolio changes.
Stocks to Consider
Fomento Economico Mexicano (FMX - Free Report) is a leading Latin American beverage and retail company that operates Coca-Cola bottling businesses, OXXO convenience stores, health and beauty outlets, fuel stations and digital financial services across multiple countries. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FMX’s current financial-year sales and earnings indicates growth of 17.3% and 131% from the prior-year reported level. FMX delivered a trailing four-quarter negative earnings surprise of 17%, on average.
The Vita Coco Company Inc. (COCO - Free Report) develops, markets and distributes coconut water and other beverage products, led by the Vita Coco brand. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Vita Coco’s current financial-year sales and earnings is expected to rise 31.7% and 30%, respectively, from the year-ago reported figures. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
Primo Brands Corporation (PRMB - Free Report) is a leading North American branded beverage company focused on healthy hydration. The company currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Primo Brands’ current financial-year sales indicates growth of 1.6% from the year-ago number. PRMB delivered an average earnings surprise of 1.4% in the trailing four quarters.