Coca Cola sells more than in 17 years and the share reaches a record high

The Coca Cola Company achieved volume growth of five percent in the second quarter of 2026. At the core brand the increase was also five percent. Excluding the recovery after the pandemic that is the strongest reading in 17 years.

The share rose more than seven percent in morning trading to a record high.

Revenue grew seven percent to 13.38 billion dollars, where 13.16 billion had been expected. Organically, meaning adjusted for acquisitions, disposals and currency effects, growth was six percent.

Adjusted earnings came in at 97 cents per share and therefore above expectations. Reported net profit rose to 4.43 billion dollars or 1.03 dollars per share, after 3.81 billion and 89 cents a year earlier.

The short version

• Volume growth in the second quarter of 2026 was five percent, the strongest reading in 17 years excluding the recovery after the pandemic.
• Revenue grew seven percent to 13.38 billion dollars, and the share rose more than seven percent in morning trading to a record high.
• Guidance for organic revenue growth in 2026 was raised to around five percent.

The football World Cup as a driver

As the most important occasion the group names the football World Cup. Chief executive Henrique Braun said the tournament offered a great opportunity to show the company brands. During the drinks breaks the sports drink of the group was present.

Its volume rose eight percent worldwide.

In the campaign the company reports record levels of presence and 25 million first party records collected about consumers.

Every single reporting segment recorded volume growth. In North America it was three percent. The largest contribution came from India.

Alongside the tournament the company names favourable weather and an easier comparison period as reasons.

Guidance raised twice

Coca Cola now expects organic revenue growth of around five percent for 2026, after four to five percent previously. That corresponds to the upper end of the original range of four to six percent.

For adjusted earnings per share growth of nine to ten percent is expected, after eight to nine percent previously. The base is three dollars from 2025. On a currency neutral basis seven to eight percent are assumed.

Free cash flow is to be 12.4 billion dollars in 2026, on operating cash flow of 14.6 billion dollars and investment of 2.2 billion dollars.

In the first half free cash flow already reached 6.9 billion dollars. Net debt corresponds to 1.4 times earnings before interest, tax, depreciation and amortisation.

Margins widen

The operating margin rose from 34.1 to 34.9 percent, and on a comparable basis from 34.7 to 35.6 percent. The comparable gross margin gained 120 basis points to 60.5 percent.

Operating profit grew nine percent to 4.7 billion dollars.

Broken down, the organic growth of six percent comes from four percentage points of higher concentrate sales and two percentage points from price and product mix. Concentrate sales lagged volume growth by one point, which the group attributes to the timing of shipments.

The comparison with PepsiCo

The placing within the sector is notable. Rival PepsiCo had reported for the same quarter that consumer budgets have tightened and that sales in the United States came in weaker as a result.

Braun also described the consumer environment as dynamic and pointed out that low income households are under pressure in many markets.

That Coca Cola raises both volume and earnings in that environment explains the share price reaction. The group gained value share across the whole market for non alcoholic drinks as well as value and volume share in North America, Latin America and in Europe, the Middle East and Africa.

What argues against the momentum

Three points the company names itself as a drag.

In the Asia Pacific region comparable operating profit fell, because investment went into winning new consumers. Geopolitical conflicts continue to disrupt operations in Eurasia and the Middle East.

The planned sale of the Africa business weighs on comparable net revenue by two to three percentage points.

On top of that come a calendar effect with six fewer selling days in the fourth quarter and a running tax dispute with the American revenue authority, in which oral argument took place in June.

Frequently asked questions

What drove the volume growth

As the most important occasion the group names the football World Cup. Volume of the sports drink of the group rose eight percent worldwide. In the campaign record levels of presence were reached and 25 million first party records were collected about consumers.

How has the guidance changed

Coca Cola now expects organic revenue growth of around five percent for 2026, after four to five percent previously. For adjusted earnings per share growth of nine to ten percent is expected, after eight to nine percent previously.

What argues against the momentum

Three points. In the Asia Pacific region comparable operating profit fell because investment went into winning new consumers. Geopolitical conflicts disrupt operations in Eurasia and the Middle East. And the planned sale of the Africa business weighs by two to three percentage points.

This analysis is for information only and is not investment advice.