Coca-Cola shares surge 7% as earnings beat lifts outlook

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Coca-Cola lifted its 2026 organic revenue growth forecast to about 5% from 4%–5% and raised its comparable earnings-per-share growth outlook to 9%–10% from 8%–9%.

The second-quarter net revenue rose 7% to $13.37 billion, ahead of analysts’ estimate of $13.16 billion, while organic revenue grew 6% according to LSEG data. Growth was supported by strong demand for zero-sugar drinks, price increases and smaller, more affordable pack sizes aimed at cost-conscious shoppers. Ready-to-drink teas and fairlife products also lifted sales.

Coca-Cola's FIFA World Cup boost

Coca-Cola, FIFA’s long-standing official beverage sponsor, said its World Cup 2026 campaign contributed to volume growth of 5% for Trademark Coca-Cola and 8% for Powerade during the quarter ended July 3.

The performance came despite a broader pullback in discretionary spending, particularly among lower-income US consumers. Demand for Coca-Cola’s zero-sugar sodas remained resilient, while smaller pack sizes helped keep products affordable for budget-conscious buyers.

On costs, Coca-Cola said in April that it was working with bottling partners to limit the impact of the conflict involving Iran after locking in lower prices for some inputs before the disruption began. With the conflict continuing, several companies, including PepsiCo, have warned of higher input-cost inflation during the second half. Murphy said Coca-Cola would provide more details about its 2027 cost outlook in October.

Coca-Cola shares have gained about 20% this year, outperforming PepsiCo, which has also been hurt by weak US snack demand in recent quarters.

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