-- Coca-Cola (KO) lifted its full-year earnings growth outlook on Tuesday as the beverages giant posted fiscal first-quarter results above market expectations amid pricing and volume gains.
The company now anticipates adjusted earnings to rise by 8% to 9% in 2026, compared with its previous projection for an increase of 7% to 8%. The current consensus on FactSet is for non-GAAP earnings of $3.22 per share, which would imply 7.3% growth from $3 reported for 2025.
The group continues to expect organic revenue to grow by 4% to 5% this year.
"Notwithstanding volatility in certain commodities like tea and coffee, we believe the overall impact on our cost basket is manageable at this time," Chief Financial Officer John Murphy said during an earnings call, according to a FactSet transcript. "However, uncertainty stemming from geopolitical tensions may cause this outlook to change."
Shares of the Fanta and Sprite maker were up 5.9% in Tuesday trade, taking year-to-date gains to 14%.
Earlier in April, rival PepsiCo (PEP) reiterated its full-year outlook and reported higher-than-expected fiscal first-quarter results.
Coca-Cola's adjusted EPS advanced to $0.86 for the quarter ended April 3 from $0.73 the year before, topping the Street's view for $0.81. Adjusted revenue climbed to $12.47 billion from $11.22 billion, ahead of the average analyst estimate on FactSet of $12.24 billion.
Pricing gains buoyed the top line and volume rose 3%, led by China, the US and India, the company said.
Concentrate sales, which reflect the quantity of concentrates, syrups, beverage bases, source waters and powders and minerals sold by the company, moved 8% higher on a yearly basis.
"The external environment differed greatly across our market," Chief Executive Henrique Braun said on the call. "While many consumers remain resilient, others are under pressure due to persistent inflation, greater macroeconomic uncertainty and volatility driven by the conflict in the Middle East."
Price: $79.54, Change: $+4.08, Percent Change: +5.41%