# Coca-Cola (KO) Q2 2026 earnings

Results filed 2026-07-28 for the quarter ended 2026-07-03. Source page: https://earnings.opennash.com/companies/ko/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/21344/000162828026049922/0001628280-26-049922-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net revenues | $13.4 billion | up 7% from a year ago | GAAP |
| Net income attributable to shareowners | $4,425 | up 16% from a year ago | GAAP |
| Diluted EPS | $1.03 | up 16% from a year ago | GAAP |
| Comparable EPS | $0.97 | up 11% from a year ago | non-GAAP |
| Gross margin | 62.9% | versus 62.4% in the prior year | GAAP |
| Operating income | $4,672 | up 9% from a year ago | GAAP |
| Operating margin | 34.9% | versus 34.1% in the prior year | GAAP |
| Comparable operating margin | 35.6% | versus 34.7% in the prior year | non-GAAP |
| Cash flow from operations (year-to-date) | $7.5 billion |  | GAAP |
| Free cash flow (year-to-date) | $6.9 billion |  | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Unit case volume | 5% | growth, led by India, China, the United States and Brazil |
| North America net operating revenues | $5,408 | up 7% |
| EMEA net operating revenues | $3,240 | up 2% |
| Latin America net operating revenues | $1,839 | up 16% |
| Asia Pacific net operating revenues | $1,581 | up 1% |
| Bottling Investments net operating revenues | $1,527 | up 8% |
| Trademark Coca-Cola volume | 5% | growth |
| Coca-Cola Zero Sugar volume | 16% | growth |

## 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

1. **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.
2. **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.
3. **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.
4. **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.
5. **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%.

## 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.