Coca-Cola raised its 2026 earnings and cash-flow outlook after reporting stronger third-quarter sales and global beverage demand. The company said net revenue increased 7% to $13.4 billion in the quarter ended October 2, while organic revenue, a non-GAAP measure excluding currency and structural effects, also rose 7%. Global unit case volume increased 5%. The results point to broad international strength, but the regional picture was uneven: North American volume was flat even as revenue and operating income grew there.

Revenue and earnings exceeded market estimates

Reported earnings per share rose 8% to $0.93, and comparable EPS increased 11% to $0.91. Reuters, citing LSEG data, said analysts had expected adjusted earnings of $0.88 and revenue of $12.92 billion. Coca-Cola reported an operating margin of 33.4%, up from 32.0% a year earlier, while comparable operating margin expanded to 32.9% from 31.9%. Management attributed the comparable-margin gain to organic revenue growth and favorable currency movements, partly offset by increased marketing investment and operating expenses.

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International markets drove volume growth

India, China, Mexico and Brazil led the 5% increase in global unit case volume. Sparkling soft-drink volume rose 5%, including 5% growth for Trademark Coca-Cola and 16% for Coca-Cola Zero Sugar. Water, sports drinks, coffee and tea grew 5% as a group, although sports drinks declined 3%. North American unit case volume was unchanged because growth in Coca-Cola branded drinks was offset by declines in water, sports, coffee and tea. The region still produced 3% organic revenue growth and 5% comparable currency-neutral operating-income growth, despite higher input costs and operating expenses.

Guidance moved higher

For 2026, Coca-Cola now expects organic revenue growth of at least 5%, compared with its earlier forecast of approximately 5%. It raised its forecast for comparable currency-neutral EPS growth excluding acquisitions and divestitures to at least 9% from 7% to 8%. Comparable EPS is now expected to grow at least 11%, up from 9% to 10%. The company also increased its free-cash-flow target to at least $13 billion from about $12.4 billion, supported by projected operating cash flow of at least $15.2 billion and approximately $2.2 billion of capital spending.

The outlook still carries important qualifications

Several forecast components are non-GAAP and depend on assumptions that can change. Coca-Cola expects currency to add roughly three percentage points to comparable EPS growth, while acquisitions and divestitures subtract about one point. The company also assumes its pending sale of African bottling operations closes during the fourth quarter, subject to regulatory approval. Reuters reported that packaging inputs such as aluminum and PET have become more expensive, adding pressure even as international demand remains resilient. Those costs, currency moves and the timing of portfolio changes could alter the full-year outcome.

What investors will watch next

The quarter shows that Coca-Cola can still expand globally while consumers face higher living costs, but flat North American volume limits the conclusion that demand is uniformly strong. The next tests will be whether international volume growth persists, whether North American categories recover and whether the company converts higher sales into its increased cash-flow target. Fourth-quarter results will also reveal how much the shorter reporting period, currency tailwinds and any African bottling transaction affect reported growth. The raised guidance is a management forecast, not a guarantee of final results.

Sources

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