Coca-Cola (KO) · Consumer Brands
Coca-Cola Q2 2026 earnings: summary, key numbers & outlook
Results filed 28 Jul 2026 · Quarter ended 3 Jul 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Net revenues grew 7% to $13.4 billion, and organic revenues (non-GAAP) grew 6%; EPS grew 16% to $1.03, and comparable EPS (non-GAAP) grew 11% to $0.97.
Coca-Cola had a strong second quarter. Unit case volume grew 5% and net revenues grew 7% to $13.4 billion. Organic revenues (non-GAAP) grew 6%, driven by a 4% increase in concentrate sales and 2% growth in price/mix. Operating margin was 34.9%, up from 34.1% a year earlier. EPS grew 16% to $1.03, and comparable EPS (non-GAAP) grew 11% to $0.97. The company gained value share in nonalcoholic ready-to-drink beverages, helped by FIFA World Cup activations and new products.
Management raised its full-year outlook. It now expects organic revenue growth of approximately 5% and comparable EPS (non-GAAP) growth of 9% to 10%, up from 4% to 5% and 8% to 9% before. Free cash flow (non-GAAP) is expected to be approximately $12.4 billion. The main tensions are Asia Pacific, where price/mix fell 9% and the company lost value share in India, plus higher input costs, higher marketing spending, and the unresolved IRS tax litigation.
Key numbers
- Net revenues · GAAP
- $13.4 billion
- Net income attributable to shareowners · GAAP
- $4.4B
- Diluted EPS · GAAP
- $1.03
- Comparable EPS · non-GAAP
- $0.97
- Gross margin · GAAP
- 62.9%
- Operating income · GAAP
- $4.7B
- Operating margin · GAAP
- 34.9%
- Comparable operating margin · non-GAAP
- 35.6%
up 7% from a year ago
up 16% from a year ago
up 16% from a year ago
up 11% from a year ago
versus 62.4% in the prior year
up 9% from a year ago
versus 34.1% in the prior year
versus 34.7% in the prior year
| Segment or metric | Value | Change |
|---|---|---|
| Unit case volume | 5% | growth, led by India, China, the United States and Brazil |
| North America net operating revenues | $5.4B | up 7% |
| EMEA net operating revenues | $3.2B | up 2% |
| Latin America net operating revenues | $1.8B | up 16% |
| Asia Pacific net operating revenues | $1.6B | up 1% |
| Bottling Investments net operating revenues | $1.5B | up 8% |
| Trademark Coca-Cola volume | 5% | growth |
| Coca-Cola Zero Sugar volume | 16% | growth |
Where each number comes from
- Net revenues: “Net revenues grew 7% to $13.4 billion, and organic revenues (non-GAAP) grew 6%, driven by a 4% increase in concentrate sales and 2% growth in price/mix.”
- Net income attributable to shareowners: “Net Income Attributable to Shareowners of The Coca-Cola Company | $4,425 | $3,810 | 16”
- Diluted EPS: “EPS grew 16% to $1.03, and comparable EPS (non-GAAP) grew 11% to $0.97. EPS performance included the impact of a 4-point currency tailwind”
- Comparable EPS: “EPS grew 16% to $1.03, and comparable EPS (non-GAAP) grew 11% to $0.97. EPS performance included the impact of a 4-point currency tailwind”
- Gross margin: “Reported (GAAP) | $13,380 | $4,965 | $8,415 | 62.9% | $3,720 | $23 | $4,672 | 34.9%”
- Operating income: “Reported (GAAP) | $13,380 | $4,965 | $8,415 | 62.9% | $3,720 | $23 | $4,672 | 34.9%”
- Operating margin: “Operating margin was 34.9% versus 34.1% in the prior year, and comparable operating margin (non-GAAP) was 35.6% versus 34.7% in the prior year.”
- Comparable operating margin: “Operating margin was 34.9% versus 34.1% in the prior year, and comparable operating margin (non-GAAP) was 35.6% versus 34.7% in the prior year.”
- Unit case volume: “Unit case volume grew 5%, led by India, China, the United States and Brazil. Performance included the following:”
- North America net operating revenues: “Reported (GAAP) | $3,240 | $1,839 | $5,408 | $1,581 | $1,527 | $37 | $(252) | $13,380”
- EMEA net operating revenues: “Reported (GAAP) | $3,240 | $1,839 | $5,408 | $1,581 | $1,527 | $37 | $(252) | $13,380”
- Latin America net operating revenues: “Reported (GAAP) | $3,240 | $1,839 | $5,408 | $1,581 | $1,527 | $37 | $(252) | $13,380”
- Asia Pacific net operating revenues: “Reported (GAAP) | $3,240 | $1,839 | $5,408 | $1,581 | $1,527 | $37 | $(252) | $13,380”
- Bottling Investments net operating revenues: “Reported (GAAP) | $3,240 | $1,839 | $5,408 | $1,581 | $1,527 | $37 | $(252) | $13,380”
- Trademark Coca-Cola volume: “Trademark Coca-Cola grew 5%, driven by growth across all geographic operating segments.”
- Coca-Cola Zero Sugar volume: “Coca-Cola Zero Sugar grew 16%, driven by growth across all geographic operating segments.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $13.4B | +6.7% | +7.3% |
| Operating income | $4.7B | +9.2% | +7.2% |
| Net income | $4.4B | +16.1% | +12.8% |
| Diluted EPS | $1.03 | +17.0% | +13.2% |
| Free cash flow | $5.1B | +51.5% | +190.8% |
| Gross margin | 62.9% | +0.5 pts | −0.1 pts |
| Operating margin | 34.9% | +0.8 pts | −0.1 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Organic revenues (non-GAAP) growth | full year 2026 | Approx. 5% growth |
| Comparable EPS (non-GAAP) growth | full year 2026 | 9% to 10% growth |
| Comparable currency neutral EPS excluding acquisitions and divestitures (non-GAAP) growth | full year 2026 | 7% to 8% growth |
| Underlying effective tax rate (non-GAAP) | full year 2026 | 19.9% |
| Capital expenditures | full year 2026 | Approx. $2.2 billion |
| Free cash flow (non-GAAP) | full year 2026 | Approx. $12.4 billion |
| Currency impact on comparable net revenues (non-GAAP) | third quarter of 2026 | Approx. 1% currency tailwind |
| Currency impact on comparable EPS (non-GAAP) | third quarter of 2026 | Approx. 3% currency tailwind |
Key takeaways
Volume growth drove the quarter
Unit case volume grew 5% and organic revenues (non-GAAP) grew 6%, driven by a 4% increase in concentrate sales and 2% growth in price/mix.
Operating margin expanded despite higher input costs
Operating margin was 34.9% versus 34.1% in the prior year, and comparable operating margin (non-GAAP) was 35.6% versus 34.7%. Higher input costs and marketing investments partly offset the gains.
Full-year guidance was raised across key measures
Organic revenue growth is now approximately 5% versus 4% to 5%, and comparable EPS (non-GAAP) growth is 9% to 10% versus 8% to 9%. Free cash flow (non-GAAP) is approximately $12.4 billion versus $12.2 billion.
Asia Pacific is the weak spot
Price/mix declined 9% on unfavorable mix and affordability initiatives, and comparable currency neutral operating income (non-GAAP) was even. The company lost value share in total NARTD beverages, as gains in Japan and China were more than offset by a loss in India.
Innovation and the World Cup supported growth
Innovation contributed to the 5% volume growth, and the FIFA World Cup campaign contributed to a portion of both 5% volume growth for Trademark Coca-Cola and 8% for Powerade. Coca-Cola Zero Sugar grew 16%.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $11.5B * |
| Q1 2025 | $11.1B |
| Q2 2025 | $12.5B |
| Q3 2025 | $12.5B |
| Q4 2025 | $11.8B * |
| Q1 2026 | $12.5B |
| Q2 2026 | $13.4B |
| Q3 2026 | $13.4B |
Data
| Q1 2025 | $0.77 |
| Q2 2025 | $0.88 |
| Q3 2025 | $0.86 |
| Q1 2026 | $0.91 |
| Q2 2026 | $1.03 |
| Q3 2026 | $0.93 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 23.5% |
| Q1 2025 | 32.9% |
| Q2 2025 | 34.1% |
| Q3 2025 | 32.0% |
| Q4 2025 | 15.6% |
| Q1 2026 | 35.0% |
| Q2 2026 | 34.9% |
| Q3 2026 | 33.4% |
Data
| Q4 2024 | $3.1B |
| Q1 2025 | -$5.5B |
| Q2 2025 | $3.4B |
| Q3 2025 | $4.6B |
| Q4 2025 | $2.9B |
| Q1 2026 | $1.8B |
| Q2 2026 | $5.1B |
| Q3 2026 | $4.5B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
How did Coca-Cola do in the second quarter of 2026?
Net revenues grew 7% to $13.4 billion and organic revenues (non-GAAP) grew 6%. EPS grew 16% to $1.03, and comparable EPS (non-GAAP) grew 11% to $0.97.
Did Coca-Cola raise its 2026 guidance?
Yes. Organic revenue growth is now approximately 5% (previously 4% to 5%), and comparable EPS (non-GAAP) growth is 9% to 10% (previously 8% to 9%). Free cash flow (non-GAAP) is approximately $12.4 billion, up from approximately $12.2 billion.
What happened to Coca-Cola's margins?
Operating margin was 34.9% versus 34.1% in the prior year, and comparable operating margin (non-GAAP) was 35.6% versus 34.7%. Organic revenue growth, lower operating expenses and currency tailwinds helped, partly offset by higher input costs and marketing investments.
Which regions grew fastest and which lagged?
Latin America net revenues grew 16% and North America grew 7%, while EMEA grew 2% and Asia Pacific grew 1%. Asia Pacific price/mix fell 9%, and comparable currency neutral operating income (non-GAAP) declined 5% in EMEA.
What are the main risks Coca-Cola flags?
Management cites higher input costs and marketing investments, and the Asia Pacific share loss in India. The underlying effective tax rate of 19.9% excludes the impact of the ongoing IRS tax litigation if the company were not to prevail.
Documents
SEC filing