Coca-Cola raises its full-year outlook and grows revenue 7% (NYSE: KO)

Posted by Latisha Jones on Oct 27th, 2026

What happened

The Coca-Cola Company (NYSE: KO) raised full-year 2026 guidance and reported third-quarter net revenues of $13.4 billion, up 7%. Operating income grew 12%, outpacing sales, and diluted earnings per share rose 8% to $0.93.

The Oct. 27 earnings release lifted the outlook for organic revenue, comparable EPS and free cash flow. CEO Henrique Braun said the quarter shows the system's sustained momentum and supports the updated guidance. Comparable EPS, which excludes items that affect comparability, grew 11% to $0.91.

Key numbers

Metric	Latest	Change	Source
Third-quarter net revenues	$13.4 billion	from $12.46 billion, +7%	SEC 8-K Exhibit 99.1
Third-quarter operating margin	33.4%	from 32.0%, +1.4 percentage points	Calculated from SEC 8-K
Third-quarter diluted EPS	$0.93	from $0.86, +8%	SEC 8-K Exhibit 99.1
Third-quarter comparable EPS (non-GAAP)	$0.91	+11%	SEC 8-K Exhibit 99.1
Year-to-date free cash flow (non-GAAP)	$11.4 billion		SEC 8-K Exhibit 99.1
Full-year 2026 free cash flow guidance (prior: approx. $12.4 billion)	At least $13.0 billion		SEC 8-K Exhibit 99.1

Where the growth came from

Unit case volume grew 5%, led by India, China, Mexico and Brazil. Concentrate sales, which the company ships to bottling partners and other customers, ran two points ahead of volume because of shipment timing.

Organic revenues grew 7%, driven by a 7% rise in concentrate sales and 1% price mix growth. By OptimistFi's calculation, net revenues rose $925 million from $12.46 billion in the third quarter of 2025. Price mix added little, so the quarter leaned on shipments rather than pricing.

Operating margin was 33.4% versus 32.0% a year earlier. Comparable operating margin was 32.9% versus 31.9%. The release credits organic revenue growth and currency tailwinds, partly offset by higher marketing investments and operating expenses. The 12% operating income growth includes items affecting comparability and currency tailwinds. Comparable currency neutral operating income grew 8%.

Results were uneven by region. Latin America operating income grew 29%, or 14% on a comparable currency neutral basis, with value share gains led by Brazil and Mexico. North America volume was flat and its operating income grew 5%. Bottling Investments operating income rose to $205 million from $57 million.

In Europe, Middle East and Africa, the company lost value share in nonalcoholic ready-to-drink beverages. Losses in France and the United Kingdom outweighed gains in Nigeria and Morocco. Asia Pacific price mix fell 2%, as pricing actions were more than offset by unfavorable mix. Across all markets, the company gained value share.

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What the raised guidance covers

Comparable EPS growth is now guided to at least 11%, up from 9% to 10%. That includes an approximately 3% currency tailwind and an approximately 1% headwind from acquisitions and divestitures. Without both, comparable currency neutral EPS is guided to at least 9% growth, up from 7% to 8%. Organic revenue growth moves to at least 5% from approximately 5%.

Cash guidance rose too. Free cash flow is now at least $13.0 billion, up from approximately $12.4 billion. It rests on at least $15.2 billion of cash from operations, up from approximately $14.6 billion, and approximately $2.2 billion of capital expenditures. The underlying effective tax rate is 19.7%, down from 19.9%. It excludes the effect of the IRS tax litigation if the company does not prevail.

Why it matters

OptimistFi has argued that Coca-Cola's brands and its concentrate and bottler model turn into pricing power and cash flow. That cash funds dividends, buybacks and steady EPS growth. The quarter supports the cash and EPS parts of that view. The pricing part looks thinner.

Year-to-date cash from operations was $12.5 billion, against $3.65 billion in the first nine months of 2025. Over that earlier period, changes in operating assets and liabilities used $8.04 billion, versus $498 million this year. Free cash flow of $11.4 billion covered dividends of $6.84 billion and stock purchases of $900 million over the same nine months.

The release itself lists caveats. Both EPS measures included a 2-point currency tailwind. It records a $47 million charge from remeasuring the contingent consideration liability tied to the fairlife acquisition. It also records net income tax benefits from interest on the company's IRS tax litigation deposit. Income taxes rose 56% to $777 million from $500 million. Income before taxes grew 16% and net income attributable to shareowners grew 8%.

What's next

Coca-Cola will provide full-year 2027 guidance when it reports fourth-quarter earnings. Its 2027 considerations already include an approximately 8% headwind to comparable net revenues and an approximately 2% headwind to comparable EPS from acquisitions and divestitures. They also include a slight currency headwind. Guidance that keeps those headwinds in line would support the case.

The current outlook assumes the pending sale of its Africa bottling operations closes in the fourth quarter of 2026, subject to regulatory approvals. The fourth quarter also has six fewer days than the fourth quarter of 2025. Acquisitions and divestitures bring an approximately 4% headwind to comparable net revenues and an approximately 3% headwind to comparable EPS.