Coca-Cola Raises 2026 Profit Outlook After 7% Revenue Rise
Coca-Cola lifted its full-year guidance after third-quarter net revenues grew 7% to $13.4 billion and unit case volume rose 5%.
The Coca-Cola Company raised its full-year guidance on October 27 after reporting third-quarter net revenues of $13.4 billion, up 7%. Global unit case volume grew 5%.
Organic revenues, a non-GAAP measure, also rose 7%. The company said concentrate sales grew 7% and price and mix added 1%. Concentrate sales ran two points ahead of unit case volume because of the timing of shipments.
Earnings per share grew 8% to $0.93. Comparable EPS rose 11% to $0.91, and both figures include a two-point currency tailwind. Operating income grew 12%. Operating margin was 33.4%, against 32.0% a year earlier.
"Our results this quarter demonstrate our system's sustained momentum, giving us confidence in our updated full year guidance," said Henrique Braun, the company's chief executive.
New guidance for 2026
Coca-Cola now expects organic revenue growth of at least 5%, up from about 5% before. Comparable EPS is forecast to grow at least 11%, compared with the earlier range of 9% to 10%.
The company also raised its free cash flow target to at least $13.0 billion from about $12.4 billion. That includes at least $15.2 billion of cash from operations and about $2.2 billion of capital expenditures. Free cash flow for the first nine months was $11.4 billion.
Full-year 2027 guidance will come with fourth-quarter results. For now, Coca-Cola said it expects a slight currency headwind next year and about an 8% headwind to comparable net revenues from acquisitions and divestitures.
Regions and brands
Volume was led by India, China, Mexico and Brazil. Trademark Coca-Cola grew 5% and Coca-Cola Zero Sugar grew 16%. Water rose 8%, while sports drinks fell 3%.
Latin America grew volume 6%, with price and mix up 7% and operating income up 29%. Volume in Europe, Middle East and Africa rose 5%, and Asia Pacific rose 6%. North America volume was flat, as growth in Trademark Coca-Cola was offset by a decline in water, sports, coffee and tea.
Overall, the company gained value share in nonalcoholic ready-to-drink beverages. In Europe, Middle East and Africa it lost share, as gains in Nigeria and Morocco were outweighed by losses in France and the United Kingdom.
Source: The Coca-Cola Company