We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Coca-Cola's Momentum Builds After Strong Q2 Earnings: ETFs to Consider
Read MoreHide Full Article
Key Takeaways
Coca-Cola's Q2 EPS rose 11% to 97 cents, while revenues increased 7% to $13.38 billion.
FIFA World Cup demand boosted Coca-Cola's sales, but Middle East tensions are driving up input costs.
The company's solid quarterly performance makes Coca-Cola-heavy ETFs worth a closer look.
Coca-Cola (KO - Free Report) came up with second-quarter 2026 earnings on July 28, before market open. The top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year.
KO shares jumped 5% on Tuesday as strong quarterly results highlighted sustained business momentum, driven by pricing gains across markets. This quarter’s results highlighted the strength of KO’s resilient, all-weather strategy.
Coca-Cola has enjoyed a strong 2026, with its shares gaining about 27.5% year to date. The beverage giant has maintained solid momentum, rising 9.2% over the past five trading sessions, 7.6% over the past month and 30.4% over the past year.
Earnings Snapshot
Coca-Cola reported comparable earnings per share of 97 cents for the second quarter, which rose 11% from the year-ago period and beat the Zacks Consensus Estimate of 92 cents by 5.43%. Favorable currency translations aided comparable EPS by two percentage points. Comparable currency-neutral EPS rose 9% year over year.
The company reported revenues of $13.38 billion, which grew 7% year over year and beat the Zacks Consensus Estimate of $13.06 billion by 2.44%. Also, KO’s organic revenues increased 6%.
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 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%.
Outlook for 2026
Coca-Cola expects 2026 organic revenue growth of 5% compared with its prior forecast of 4-5% for 2026. 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.
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.
KO’s capital expenditure is still likely to be $2.2 billion.
From the Pitch to Profits
The FIFA World Cup proved fruitful not only for the Spanish national team but also for the beverage giant. Coca-Cola benefited from stronger demand for its drinks, driven by the tournament's hydration breaks.
According to Reuters, as a top FIFA sponsor, Coca-Cola saw a boost in energy drink sales during the tournament, contributing to strong quarterly results and an increase in its annual guidance. Per the article, World Cup-driven consumption added to the momentum of Coca-Cola's trademark beverages and zero sugar sodas, both of which demonstrated strong demand despite a broader pullback in discretionary spending among lower-income U.S. consumers.
The Cost of Conflict
As quoted on the abovementioned article, according to the company’s CFO, John Murphy, KO experienced a higher-than-expected increase in aluminum and PET costs this year.
The conflict in the Middle East has disrupted energy supplies and driven up fuel prices, contributing to higher aluminum and PET costs. Coca-Cola secured some lower input costs before the conflict began and is working with bottling partners to limit the impact.
However, input costs could remain under pressure if the conflict persists and energy prices stay elevated. Murphy stated that the company lost market share in India during the quarter, where aluminum can shortages weighed on performance.
Coca-Cola’s Stock Outlook
Coca-Cola currently has an average brokerage recommendation (ABR) of 1.46 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 26 brokerage firms. Of the 26 recommendations deriving the current ABR, Strong Buy and Buy, respectively, account for 73.08% and 7.69% of all recommendations, indicating that the majority of the analysts remain bullish.
Based on short-term price targets offered by 24 analysts, the average price target for Coca-Cola comes to $89.21, ranging from a low of $80.00 to a high of $100.00. As of market close on July 29, the shares of the beverage giant closed at $89.08, gaining around 0.9%.
ETFs to Explore
Here, we have highlighted ETFs with meaningful exposure to Coca-Cola.
Corgi Coffee & Energy Drinks ETF (BREW - Free Report) has an exposure of 19.40% to KO.
iShares U.S. Consumer Staples ETF (IYK - Free Report) has an exposure of 12.84% to KO.
Global X PureCap MSCI Consumer Staples ETF (GXPS - Free Report) has an exposure of 11.33% to KO.
First Trust Nasdaq Food & Beverage ETF (FTXG - Free Report) has an exposure of 8.71% to KO.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) has an exposure of 8.03% to KO.
Vanguard Consumer Staples ETF (VDC - Free Report) has an exposure of 8.01% to KO.
View the Zacks #1 Rank List
Image: Bigstock
Coca-Cola's Momentum Builds After Strong Q2 Earnings: ETFs to Consider
Key Takeaways
Coca-Cola (KO - Free Report) came up with second-quarter 2026 earnings on July 28, before market open. The top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year.
KO shares jumped 5% on Tuesday as strong quarterly results highlighted sustained business momentum, driven by pricing gains across markets. This quarter’s results highlighted the strength of KO’s resilient, all-weather strategy.
Coca-Cola has enjoyed a strong 2026, with its shares gaining about 27.5% year to date. The beverage giant has maintained solid momentum, rising 9.2% over the past five trading sessions, 7.6% over the past month and 30.4% over the past year.
Earnings Snapshot
Coca-Cola reported comparable earnings per share of 97 cents for the second quarter, which rose 11% from the year-ago period and beat the Zacks Consensus Estimate of 92 cents by 5.43%. Favorable currency translations aided comparable EPS by two percentage points. Comparable currency-neutral EPS rose 9% year over year.
The company reported revenues of $13.38 billion, which grew 7% year over year and beat the Zacks Consensus Estimate of $13.06 billion by 2.44%. Also, KO’s organic revenues increased 6%.
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 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%.
Outlook for 2026
Coca-Cola expects 2026 organic revenue growth of 5% compared with its prior forecast of 4-5% for 2026. 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.
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.
KO’s capital expenditure is still likely to be $2.2 billion.
From the Pitch to Profits
The FIFA World Cup proved fruitful not only for the Spanish national team but also for the beverage giant. Coca-Cola benefited from stronger demand for its drinks, driven by the tournament's hydration breaks.
According to Reuters, as a top FIFA sponsor, Coca-Cola saw a boost in energy drink sales during the tournament, contributing to strong quarterly results and an increase in its annual guidance. Per the article, World Cup-driven consumption added to the momentum of Coca-Cola's trademark beverages and zero sugar sodas, both of which demonstrated strong demand despite a broader pullback in discretionary spending among lower-income U.S. consumers.
The Cost of Conflict
As quoted on the abovementioned article, according to the company’s CFO, John Murphy, KO experienced a higher-than-expected increase in aluminum and PET costs this year.
The conflict in the Middle East has disrupted energy supplies and driven up fuel prices, contributing to higher aluminum and PET costs. Coca-Cola secured some lower input costs before the conflict began and is working with bottling partners to limit the impact.
However, input costs could remain under pressure if the conflict persists and energy prices stay elevated. Murphy stated that the company lost market share in India during the quarter, where aluminum can shortages weighed on performance.
Coca-Cola’s Stock Outlook
Coca-Cola currently has an average brokerage recommendation (ABR) of 1.46 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 26 brokerage firms. Of the 26 recommendations deriving the current ABR, Strong Buy and Buy, respectively, account for 73.08% and 7.69% of all recommendations, indicating that the majority of the analysts remain bullish.
Based on short-term price targets offered by 24 analysts, the average price target for Coca-Cola comes to $89.21, ranging from a low of $80.00 to a high of $100.00. As of market close on July 29, the shares of the beverage giant closed at $89.08, gaining around 0.9%.
ETFs to Explore
Here, we have highlighted ETFs with meaningful exposure to Coca-Cola.
Corgi Coffee & Energy Drinks ETF (BREW - Free Report) has an exposure of 19.40% to KO.
iShares U.S. Consumer Staples ETF (IYK - Free Report) has an exposure of 12.84% to KO.
Global X PureCap MSCI Consumer Staples ETF (GXPS - Free Report) has an exposure of 11.33% to KO.
First Trust Nasdaq Food & Beverage ETF (FTXG - Free Report) has an exposure of 8.71% to KO.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) has an exposure of 8.03% to KO.
Vanguard Consumer Staples ETF (VDC - Free Report) has an exposure of 8.01% to KO.