Coca-Cola Reports Third Quarter 2026 Results and Raises Full Year Guidance
COCA COLA CO (KO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Coca-Cola Reports Third Quarter 2026 Results and Raises Full Year Guidance Global Unit Case Volume Grew 5% Net Revenues Grew 7%; Organic Revenues (Non-GAAP) Grew 7% Operating Income Grew 12%; Comparable Currency Neutral Operating Income (Non-GAAP) Grew 8% Operating M
How this was made
The 30-second read
Why it matters
The raised guidance reflects stronger-than-expected demand and margin performance, likely prompting a short‑term rally.
Market read
The earnings beat and raised guidance provide fresh, material information for traders, making the article highly relevant.
What to watch
Currency tailwinds contributed to margin expansion; a reversal could temper the rally.
Coca-Cola Reports Third Quarter 2026 Results and Raises Full Year Guidance
Third-quarter reported net revenues grew 7%, unit case volume grew 5%, operating income grew 12% and diluted EPS grew 8%. Comparable EPS grew 11%, operating margin expanded, year-to-date free cash flow was $11,408 million, and the company raised its full-year 2026 organic revenue, comparable EPS and free-cash-flow outlooks.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended October 2, 2026 net operating revenues (In millions)GAAP | $13.38B | – | 7% |
| Three months ended October 2, 2026 organic revenuesnon-GAAP | 7% growth | – | 7% |
| Three months ended October 2, 2026 cost of goods sold (In millions)GAAP | $4.93B | – | 3% |
| Three months ended October 2, 2026 gross profit (In millions)GAAP | $8.45B | – | 10% |
| Three months ended October 2, 2026 gross marginGAAP | 63.2 % | – | – |
| Three months ended October 2, 2026 comparable gross marginnon-GAAP | 62.7 % | – | – |
| Three months ended October 2, 2026 selling, general and administrative expenses (In millions)GAAP | $3.98B | – | 10% |
| Three months ended October 2, 2026 other operating charges (In millions)GAAP | $10M | – | (83)% |
| Three months ended October 2, 2026 operating income (In millions)GAAP | $4.46B | – | 12% |
| Three months ended October 2, 2026 comparable operating income (In millions)non-GAAP | $4.40B | – | 11% |
| Three months ended October 2, 2026 operating marginGAAP | 33.4% | – | 140 basis points |
| Three months ended October 2, 2026 comparable operating marginnon-GAAP | 32.9% | – | 106 basis points |
| Three months ended October 2, 2026 net income attributable to shareowners of The Coca-Cola Company (In millions)GAAP | $4.01B | – | 8% |
| Three months ended October 2, 2026 consolidated net income (In millions)GAAP | $4.06B | – | 10% |
| Three months ended October 2, 2026 diluted net income per shareGAAP | $ 0.93 | – | 8% |
| Three months ended October 2, 2026 comparable diluted net income per sharenon-GAAP | $ 0.91 | – | 11% |
| Three months ended October 2, 2026 effective tax rateGAAP | 16.1 % | – | – |
| Three months ended October 2, 2026 comparable effective tax ratenon-GAAP | 19.3 % | – | – |
| Three months ended October 2, 2026 unit case volumeother | 5% growth | – | 5% |
| Three months ended October 2, 2026 concentrate salesother | 7% | – | 7% |
| Three months ended October 2, 2026 price/mixother | 1% | – | 1% |
| Nine months ended October 2, 2026 net operating revenues (In millions)GAAP | $39.23B | – | 9% |
| Nine months ended October 2, 2026 gross profit (In millions)GAAP | $24.72B | – | 10% |
| Nine months ended October 2, 2026 operating income (In millions)GAAP | $13.50B | – | 13% |
| Nine months ended October 2, 2026 net income attributable to shareowners of The Coca-Cola Company (In millions)GAAP | $12.36B | – | 14% |
| Nine months ended October 2, 2026 diluted net income per shareGAAP | $ 2.86 | – | 14% |
| Nine months ended October 2, 2026 comparable diluted net income per sharenon-GAAP | $ 2.74 | – | 13% |
| Nine months ended October 2, 2026 net cash provided by operating activities (In millions)GAAP | $12.47B | – | – |
| Nine months ended October 2, 2026 purchases of property, plant and equipment (In millions)GAAP | −1.06B | – | – |
| Nine months ended October 2, 2026 free cash flow (In millions)non-GAAP | $11.41B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| EMEAUnit case volume grew 5%, primarily driven by growth in Trademark Coca-Cola, water, sports, coffee and tea, and sparkling flavors. | $3.10B | – | 4% |
| Latin AmericaUnit case volume grew 6%, driven by growth across all global beverage categories; price/mix grew 7%. | $1.96B | – | 25% |
| North AmericaUnit case volume was even, as growth in Trademark Coca-Cola was offset by a decline in water, sports, coffee and tea. | $5.39B | – | 3% |
| Asia PacificUnit case volume grew 6%, driven by growth across all global beverage categories; price/mix declined 2%. | $1.56B | – | 4% |
| Bottling InvestmentsUnit case volume grew 8%, primarily driven by growth in India and South Africa. | $1.52B | – | 13% |
| CorporateNo operating driver was provided. | $ 38 | – | 8% |
| EliminationsNo operating driver was provided. | −$192M | – | 24% |
Full Year 2026 Guidance outlook
- RevenueOrganic revenues (non-GAAP): At least 5% growth
- Tax rateUnderlying effective tax rate (non-GAAP): 19.7%
- NoteComparable net revenues (non-GAAP): Approx. 1% currency tailwind; Approx. 2% headwind from acquisitions and divestitures
- NoteComparable currency neutral EPS excluding acquisitions and divestitures (non-GAAP): At least 9% growth
- NoteComparable EPS (non-GAAP): At least 11% growth, which includes: Approx. 3% currency tailwind; Approx. 1% headwind from acquisitions and divestitures
- NoteFree cash flow (non-GAAP): At least $13.0 billion, consisting of: At least $15.2 billion of cash from operations; Approx. $2.2 billion of capital expenditures
- NoteFourth Quarter 2026 comparable net revenues (non-GAAP): Approx. 1% currency tailwind; Approx. 4% headwind from acquisitions and divestitures
- NoteFourth Quarter 2026 comparable EPS (non-GAAP): Approx. 4% currency tailwind; Approx. 3% headwind from acquisitions and divestitures
- NoteFull Year 2027 comparable net revenues (non-GAAP): Slight currency headwind; Approx. 8% headwind from acquisitions and divestitures
- NoteFull Year 2027 comparable EPS (non-GAAP): Slight currency headwind; Approx. 2% headwind from acquisitions and divestitures
Capital returns
- Purchases of stock for treasury for the nine months ended October 2, 2026: $ (900) million
- Dividends for the nine months ended October 2, 2026: $ (6,842) million
What drove it
- Consolidated unit case volume grew 5%, led by India, China, Mexico and Brazil.
- Sparkling soft drinks grew 5%; Trademark Coca-Cola grew 5% and Coca-Cola Zero Sugar grew 16%.
- Water, sports, coffee and tea grew 5%; water grew 8%.
- Price/mix grew 1%, primarily driven by pricing actions in the marketplace, partially offset by unfavorable mix.
- Concentrate sales were 2 points ahead of unit case volume due to the timing of concentrate shipments.
- Comparable currency neutral operating income grew 8%, primarily driven by organic revenue growth.
- The company gained value share in total NARTD beverages.
Concerns
- Comparable operating margin expansion was partially offset by an increase in marketing investments and higher operating expenses.
- North America unit case volume was even.
- Asia Pacific price/mix declined 2%, as pricing actions in the marketplace were more than offset by unfavorable mix.
- Sports drinks declined 3%; coffee was even and tea was even.
- EMEA lost value share in total NARTD beverages, as gains in Nigeria and Morocco were more than offset by losses in France and the United Kingdom.
- The full-year underlying effective tax rate guidance does not include the impact of ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail.
- Fourth quarter 2026 financial results will be impacted by six fewer days as compared to fourth quarter 2025.
What to watch
- Whether full-year organic revenues achieve at least 5% growth.
- Whether comparable currency neutral EPS excluding acquisitions and divestitures achieves at least 9% growth.
- Fourth-quarter impacts from an approximate 1% currency tailwind and an approximate 4% headwind from acquisitions and divestitures on comparable net revenues.
- Fourth-quarter impacts from an approximate 4% currency tailwind and an approximate 3% headwind from acquisitions and divestitures on comparable EPS.
- Closing of the pending sale of bottling operations in Africa, which is subject to regulatory approvals.
- North America volume trends, Asia Pacific price/mix, and EMEA NARTD value share.
Balance sheet and cash flow
- Cash and cash equivalents as of October 2, 2026: $ 13,454 million
- Short-term investments as of October 2, 2026: $ 231 million
- Total Cash, Cash Equivalents and Short-Term Investments as of October 2, 2026: $ 13,685 million
- Marketable securities as of October 2, 2026: $ 2,910 million
- Current maturities of long-term debt as of October 2, 2026: $ 4,923 million
- Long-term debt as of October 2, 2026: $ 36,623 million
- Net cash provided by operating activities for the nine months ended October 2, 2026: $ 12,471 million
- Net cash used in financing activities for the nine months ended October 2, 2026: $ (10,546) million
- Cash and cash equivalents at end of period: $ 13,454 million
Analysis
Coca-Cola reported broad third-quarter growth. Reported net operating revenues increased 7% to $ 13,380 million, organic revenues grew 7%, and unit case volume grew 5%. Concentrate sales increased 7%, two points ahead of volume because of concentrate shipment timing, while price/mix increased 1%. India, China, Mexico and Brazil led consolidated volume growth. Sparkling soft drinks grew 5%, including 5% growth for Trademark Coca-Cola and 16% growth for Coca-Cola Zero Sugar.
Profitability improved on both reported and comparable measures. Gross profit rose 10% to $ 8,450 million and reported operating income increased 12% to $ 4,465 million. Reported operating margin was 33.4%, compared with 32.0% in the prior year, while comparable operating margin was 32.9%, compared with 31.9%. Comparable currency neutral operating income grew 8%, with organic revenue growth and currency tailwinds offset in part by higher marketing investments and operating expenses. Diluted EPS rose 8% to $ 0.93, and comparable EPS rose 11% to $ 0.91; both measures included a 2-point currency tailwind.
Regional performance was led by Latin America, where revenue grew 25%, unit case volume grew 6%, price/mix grew 7%, and reported operating income increased 29%. North America revenue rose 3% and operating income rose 5%, but volume was even as Trademark Coca-Cola growth was offset by declines in water, sports, coffee and tea. Asia Pacific delivered 6% volume growth and 14% comparable currency neutral operating-income growth, despite a 2% decline in price/mix. EMEA volume grew 5%, although the company lost total NARTD value share in the region.
Cash generation strengthened in the nine-month period. Net cash provided by operating activities was $ 12,471 million and free cash flow was $ 11,408 million. The company used $ (900) million for treasury-stock purchases and paid $ (6,842) million in dividends. At October 2, 2026, cash and cash equivalents were $ 13,454 million, while long-term debt was $ 36,623 million and current maturities of long-term debt were $ 4,923 million.
Management raised full-year 2026 targets to at least 5% organic revenue growth, at least 9% comparable currency neutral EPS growth excluding acquisitions and divestitures, at least 11% comparable EPS growth, and at least $13.0 billion of free cash flow. The outlook includes an approximate 1% currency tailwind and an approximate 2% headwind from acquisitions and divestitures for full-year comparable net revenues. Fourth-quarter comparisons carry a larger approximate 4% acquisitions-and-divestitures headwind for comparable net revenues, as well as six fewer days than the prior-year quarter.
Management, verbatim
Our results this quarter demonstrate our system’s sustained momentum, giving us confidence in our updated full year guidance.
Henrique Braun, CEO of The Coca-Cola Company
By staying close to consumers and executing with agility across our global system, we are delivering quality growth while continuing to invest in the capabilities, brands and people that will fuel our future.
Henrique Braun, CEO of The Coca-Cola Company
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- No quarterly operating cash flow or quarterly free cash flow was reported.
- No dividend per share was reported.
- No full-year 2026 gross margin guidance was reported.
- No full-year 2026 operating expense guidance was reported.
- No sequential quarter comparisons were reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Coca‑Cola filed an 8‑K reporting its Q3 2026 financials and announced an updated full‑year outlook.
Ticker impact
Coca-Cola raised its full-year guidance after reporting Q3 2026 results with 7% revenue growth and 8% EPS increase.
likely upward pressure as investors price in higher future earnings.
The company posted solid top-line growth and improved margins, prompting management to raise guidance, which typically supports a bullish price reaction.
Market effects
Boosts confidence in the non‑alcoholic beverage sector, potentially lifting peers.
Positive for North American consumer staples indices.
Reinforces demand trends in emerging markets where Coca‑Cola saw volume growth.
Counterpoint
If the guidance raise is already priced in, the stock may face limited upside.
Key entities
- companyThe Coca‑Cola Company
Issuer of the earnings release and guidance update.
- executiveHenrique Braun
CEO who commented on the results and guidance.
