The Coca-Cola Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenues grew 7% year-over-year to $13.4 billion for the quarter; organic revenues (non-GAAP) also grew 7%.
• Operating income grew 12% year-over-year; comparable operating margin (non-GAAP) was 32.9% versus 31.9% in the prior year.
• Earnings per share (EPS) grew 8% to $0.93; comparable EPS (non-GAAP) grew 11% to $0.91.
• Year-to-date cash flow from operations was $12.5 billion and free cash flow (non-GAAP) was $11.4 billion.
• Consolidated unit case volume grew 5% for the quarter.
• For the nine months ended October 2, 2026, net operating revenues were $39.2 billion (up 9%), operating income was $13.5 billion (up 13%), and diluted EPS was $2.86 (up 14%).

Guidance and Future Outlook:

• Full Year 2026 guidance raised: Organic revenues (non-GAAP) expected to grow at least 5% (prior: approx. 5%); Comparable EPS (non-GAAP) expected to grow at least 11% (prior: 9% to 10%); Free cash flow (non-GAAP) expected to be at least $13.0 billion (prior: approx. $12.4 billion).
• Underlying effective tax rate (non-GAAP) for 2026 is projected at 19.7% (prior: 19.9%).
• Comparable currency neutral EPS excluding acquisitions and divestitures (non-GAAP) for 2026 is projected to grow at least 9% (prior: 7% to 8%).
• Fourth Quarter 2026 considerations include approx. 1% currency tailwind and approx. 4% headwind from acquisitions and divestitures for comparable net revenues.
• Full Year 2027 considerations include a slight currency headwind and approx. 8% headwind from acquisitions and divestitures for comparable net revenues.

Business Segments and Product Lines:

• Latin America: Unit case volume grew 6%; operating income grew 29% (comparable currency neutral up 14%); gained value share in total nonalcoholic ready-to-drink (NARTD) beverages, led by Brazil and Mexico.
• North America: Unit case volume was even; operating income grew 5%; gained value share in total NARTD beverages, led by juice, value-added dairy, plant-based beverages, and Trademark Coca-Cola.
• Asia Pacific: Unit case volume grew 6%; operating income grew 8% (comparable currency neutral up 14%); gained value share in total NARTD beverages, led by Japan and Vietnam.
• Europe, Middle East & Africa (EMEA): Unit case volume grew 5%; operating income grew 7%; lost value share in total NARTD beverages, as gains in Nigeria and Morocco were offset by losses in France and the United Kingdom.
• Bottling Investments: Unit case volume grew 8%; operating income grew 261% (comparable currency neutral up 252%).
• Product Performance: Sparkling soft drinks grew 5%; Coca-Cola Zero Sugar grew 16%; Diet Coke/Coca-Cola Light grew 6%; Water grew 8%; Sports drinks declined 3%. Juice, value-added dairy, and plant-based beverages were even.

Market and Competitive Landscape:

• The company gained value share in total NARTD beverages on a consolidated basis.
• Specific share gains occurred in Nigeria, Mexico, Brazil, North America (juice/dairy/plant-based), Japan, and Vietnam.
• Specific share losses occurred in France, the United Kingdom, and Asia Pacific (sports drinks).
• Coca-Cola and Sprite activations at 60 festivals in over 20 European markets reached over 12 million attendees and 500 million livestream viewers.

Risks and Challenges:

• Currency fluctuations impacted results; consolidated results included a 2-point currency tailwind for EPS and a 1-point tailwind for net revenues in the quarter.
• Acquisitions and divestitures created headwinds; 2026 guidance assumes a pending sale of bottling operations in Africa closing in Q4 2026.
• Operating expenses increased, and marketing investments rose, partially offsetting revenue and margin growth.
• Unfavorable mix partially offset pricing actions in North America, Asia Pacific, and EMEA.
• Ongoing tax litigation with the U.S. Internal Revenue Service is excluded from the underlying effective tax rate guidance.

Management Commentary and Tone:

• CEO Henrique Braun stated results demonstrate "sustained momentum" and confidence in updated full-year guidance.
• Management emphasized executing with agility across the global system and investing in capabilities, brands, and people.
• The tone highlighted the combination of global scale with deep local roots to drive growth.

Other Key Points:

• The company celebrated milestone anniversaries in the United States (140 years), Mexico (100 years), and Nigeria (75 years).
• The U.S. system supports nearly 1 million jobs and contributes approximately $85 billion in annual economic activity.
• In October 2025, the company sold its finished product operations in Nigeria.
• In May 2025, the company refranchised bottling operations in certain territories in India.
• Coca-Cola introduced a 500ml "Supercan" in Greece and partnered with British rapper Central Cee for an English Premier League campaign.
• Assets held for sale increased to $6.275 billion as of October 2, 2026, from $5.342 billion as of December 31, 2025.
• Long-term debt decreased to $36.623 billion as of October 2, 2026, from $42.119 billion as of December 31, 2025.