Coca-Cola (KO) raised its full-year earnings growth outlook on Tuesday as the beverages giant reported stronger-than-expected fiscal second-quarter results.
The company now anticipates comparable earnings to rise by 9% to 10% for 2026, up from its prior projections for 8% to 9% growth. The consensus on FactSet is for non-GAAP EPS of $3.27, compared with $3 reported in 2025.
Coca-Cola forecasts organic revenue to increase by roughly 5% for the ongoing year, at the high end of its previous guidance for a 4% to 5% rise.
The stock rose 6.3% in Tuesday trade, and is up 28% so far this year.
"While the external environment remains uncertain, our strong first-half performance and business flexibility give us confidence in our updated outlook for the year," Chief Financial Officer John Murphy said during an earnings call, according to a FactSet transcript.
Earlier in July, rival PepsiCo (PEP) reported fiscal second-quarter results above Wall Street's estimates, but it opted to reiterate its full-year outlook amid soft consumer spending in the US.
For the three months through July 3, Coca-Cola's adjusted EPS jumped 11% year over year to $0.97, topping the Street's view for $0.93. Comparable revenue rose to $13.37 billion from $12.62 billion in the 2025 quarter, exceeding the average analyst estimate of $13.17 billion.
"The quarter benefited from several factors, including favorable weather in certain markets, strong global activation around the FIFA World Cup, and cycling an easier prior year comparison," Murphy told analysts.
Last week, RBC Capital Markets expected Coca-Cola to report "strong" quarterly results amid robust North America trends.
The maker of Sprite and Fanta recorded a 2% increase in consolidated price and mix for the second quarter, driven by pricing actions in the marketplace, it said.
Concentrate sales, which reflect the quantity of concentrates, syrups, beverage bases, source waters and powders and minerals sold by the company, increased 4% from a year earlier. Consolidated unit case volume moved 5% higher, led by India, China, the US and Brazil.
"We see an uneven consumer environment," Chief Executive Henrique Braun said on the call. "The economy is strong in many places, yet many consumers face inflationary pressures, geopolitical uncertainty and economic challenges."
Coca-Cola expects concentrate shipments to lag unit case volume by one percentage point in the third quarter, Murphy said on the call.
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