The stock climbed about 4% ahead of the U.S. market opening, changing hands near $87.20.
Adjusted earnings came in at $0.97 per share, with revenue totaling approximately $13.4 billion.
Coca-Cola increased its outlook for adjusted EPS growth in 2026 to a range of 9%-10%.
Shares of The Coca-Cola Company NYSE:KO rose nearly 4% in premarket trading on Tuesday, after the company surpassed quarterly expectations and increased its forecast for 2026. The stock was last seen trading around $87.20 ahead of the market open.
A healthier sales mix supported the improved result. Coca-Cola boosted case volume with reduced dependence on price hikes.
Coca-Cola reported a 5% increase in global unit case volume, its standard measure for beverage sales, after a 1% decrease a year ago. Price/mix, reflecting pricing actions and product mix, eased to 2% growth compared with 6% previously.
Metric
Q2 2026
Q2 2025
Year-on-year shift
Organic revenue increase
6%
5%
up 1 percentage point
Unit case volume
5%
-1%
rise of 6 percentage points
Price/mix
2%
6%
down 4 percentage points
Comparable operating margin
35.6%
34.7%
increase of 90 basis points
Comparable EPS growth
11%
4%
rise of 7 percentage points
Data from The Coca-Cola Company. Non-GAAP metrics include organic revenue and comparable results.
The key indicator for investors is the six-point shift in volume. Pricing gains decelerated, yet demand expanded, and the adjusted operating margin continued to rise.
Net revenue increased by 7% to approximately $13.4 billion, compared with analysts’ estimates of around $13.16 billion. Adjusted earnings per share came in at $0.97, surpassing consensus by four cents.
Chief Executive Henrique Braun stated that Coca-Cola remained attentive to “the changing needs of our consumers and customers.” Braun added that the system increased its value share as it supported long-term investment. The Coca-Cola Company
Brand volume figures supported the statement. Coca-Cola Zero Sugar climbed 16%, Trademark Coca-Cola advanced 5%, and Diet Coke was up 7%.
World Cup engagement gave an additional lift. Coca-Cola credited its campaign for helping drive a 5% rise for Trademark Coke and an 8% increase for Powerade.
CFO John Murphy told Reuters the company was “not unhappy” with hydration breaks during the tournament. These pauses provided additional advertising slots and benefited Powerade demand. Reuters
North America posted stable performance. Volume climbed 3%, price/mix was up 4%, and comparable operating income at constant currency gained 12%.
Asia Pacific performance lagged, with volumes rising 8% but price/mix declining 9% due to affordability strategies and less favorable mix. Coca-Cola’s value share in the region decreased as a drop in India outweighed growth in other markets.
Comparable operating margin increased by 90 basis points to 35.6%. Free cash flow for the year to date totaled $6.9 billion.
The company is projecting roughly 5% organic revenue growth for the year. It has increased its comparable EPS growth outlook to 9%-10%, up from 8%-9%. The forecast for free cash flow has been raised to around $12.4 billion.
Some of the boost to earnings comes from outside factors. The outlook factors in a projected three-percentage-point benefit from currency and a one-point drag from acquisitions and divestitures. Earnings per share growth at constant currency, excluding the impact of transactions, is expected at 7%-8%.
Peer outlook is reduced. PepsiCo NASDAQ:PEP maintains its forecast for organic revenue growth at 2%-4% and core constant-currency EPS growth at 4%-6%. Although the metrics are not identical, the advantage remains with Coca-Cola for short-term momentum.
Risks persist. Aluminum and PET prices have increased beyond what management had anticipated. Fairlife has restored most of its U.S. production following a ransomware attack, and Coca-Cola does not currently foresee any significant financial impact.
This quarter marked an improvement in the quality of Coca-Cola’s growth. The upcoming challenge will be maintaining volumes as the impact of World Cup activity diminishes. Additionally, currency support increases the benchmark for comparing results in 2027.
What is causing KO shares to climb ahead of Tuesday’s opening bell?
KO was last seen trading at about $87.36 by 8:38 a.m. ET, marking a 3.9% increase ahead of Tuesday’s open. The stock had ended Monday’s regular session at $84.07, up 2.2% for the day. Investing.com The move came as investors responded to better-than-expected second-quarter earnings and an improved forecast for 2026. The Coca-Cola Company Premarket action also sent shares beyond the previous 52-week high of $85.68.
To what extent did second-quarter results surpass Wall Street forecasts?
Comparable EPS came in at $0.97, topping Wall Street's $0.93 estimate by four cents. Net revenue totaled $13.38 billion, surpassing consensus by about $210 million. Google Revenue climbed 7%, with organic revenue up 6% from the previous year. Reported EPS was up 16% to $1.03, partly due to currency effects. The Coca-Cola Company Both main metrics topped forecasts by a solid, though modest, margin.
What are the specific updates to Coca-Cola’s 2026 forecast?
Coca-Cola has raised its projection for organic revenue growth in 2026 to about 5%, up from its earlier guidance of 4% to 5%. The company also lifted its forecast for comparable EPS growth to 9%-10% for the year, from its previous estimate of 8%-9%. Currency movements are expected to contribute around three percentage points to comparable EPS growth. Free cash flow guidance was revised upward by $200 million to around $12.4 billion. These figures represent management’s projections and do not guarantee future returns for shareholders.
Did the growth result primarily from increased sales volume, or was it largely due to higher prices?
Worldwide unit-case volume increased 5%, with price and mix adding a further 2%. Concentrate sales climbed 4%, lagging volume growth as shipment timing differed. Volume in North America grew 3%, with price and mix up 4%. Asia-Pacific volume surged 8%, while price and mix dropped 9%. The quarter thus reflected genuine demand growth, not solely driven by pricing.
Which regions and brands drove performance in the quarter?
Coca-Cola Zero Sugar volume advanced 16% in all geographic operating areas. Trademark Coca-Cola posted a 5% increase, and Diet Coke along with Coca-Cola Light rose 7%. Asia-Pacific recorded the highest regional volume growth at 8% in the quarter. EMEA volumes were up 4%, while both North America and Latin America volumes added 3%. Powerade volume climbed 8%, in part due to World Cup-driven marketing.
Have margins been rising even as commodity expenses increase?
Comparable operating margin grew by 90 basis points to 35.6% during the quarter. The reported operating margin was up 80 basis points to 34.9% from a year earlier. Comparable operating income, excluding currency impacts, rose 6%, overcoming greater cost pressures. Increased input expenses and higher marketing investments limited some of the revenue gains. Management noted that aluminum and PET prices increased further than earlier anticipated.
What is the current status of cash flow and the dividend following this report?
Operating cash flow for the year to date stood at $7.5 billion through early July. Free cash flow for the same period amounted to $6.9 billion. The company now expects full-year free cash flow to be approximately $12.4 billion. The Coca-Cola Company The projected annual dividend is $2.12, reflecting quarterly payments of $0.53. In February, Coca-Cola announced its 64th consecutive yearly dividend increase. The Coca-Cola Company With shares at $87.36, this corresponds to a dividend yield of roughly 2.4%.
Following today's surge, is there sufficient upside remaining for the stock?
KO ended Monday’s session trading at about 26.4 times trailing earnings. The premarket figure of $87.36 corresponds to a multiple of nearly 27.5. Investing.com Google Finance put the 17-analyst average price target at $90.38, representing an upside of roughly 3.5% from the latest premarket level. The listed price target range was $84 to $98 per share. A number of targets may be updated following analysts’ review of the company’s latest earnings release.
What key risks should investors monitor this week?
Fairlife has largely restarted production following a ransomware attack that disrupted its systems. Management does not expect the incident to have a material impact on company results, though recovery efforts are ongoing and some operational uncertainty persists. The Coca-Cola Company Rising input costs, particularly for aluminum and PET, are an added challenge. Reuters In Asia-Pacific, price and mix dropped 9% with a reduction in regional value share. The outlook assumes the African bottling divestiture will be finalized in late 2026, pending regulatory approval.
Iwona Majkowska is a financial markets journalist at TS2.tech. She covers stocks, artificial intelligence and technology, with a focus on the stories moving U.S. and global markets. Before turning to financial journalism, she worked in equity research and financial analysis. She is a graduate of the Warsaw School of Economics. Follow Iwona Majkowska on Google News.
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