#Coca-Cola Reports 18% EPS Growth and Raises Full-Year Outlook
The Coca-Cola Company (NYSE: KO) reported first quarter 2026 results on April 28, 2026, with diluted earnings per share rising 18% to $0.91 and comparable EPS (non-GAAP) also growing 18% to $0.86, compared to $0.77 in the prior-year period.
The Atlanta-based beverage company competes directly with PepsiCo in global sparkling soft drinks and non-alcoholic ready-to-drink beverages, a category where Coca-Cola said it gained value share during the quarter. The company sells products in more than 200 countries and territories through a network of bottling partners.
#Net Revenues Rise 12% as Volume Grows Across Most Regions
Net revenues for the quarter ended April 3, 2026 reached $12.5 billion, up 12% from $11.1 billion in the first quarter of 2025. Organic revenues (non-GAAP), which strip out currency effects and the impact of acquisitions and divestitures, grew 10%, driven by an 8% increase in concentrate sales and 2% growth in price/mix.
Global unit case volume grew 3%, led by China, the United States and India. Coca-Cola Zero Sugar posted volume growth of 13% across all geographic operating segments, while Trademark Coca-Cola grew 2%.
North America was the standout region, with unit case volume up 4% and comparable currency neutral operating income (non-GAAP) growing 17%. Asia Pacific reported unit case volume growth of 5% but saw comparable currency neutral operating income (non-GAAP) decline 17%, primarily driven by higher input costs and affordability-focused pricing initiatives.
#Operating Margin Expands as Comparable EPS Guidance Updated
Operating income rose 19% to $4.36 billion. Operating margin widened to 35.0% from 32.9% in the prior-year period, aided by currency tailwinds and items impacting comparability. Comparable operating margin (non-GAAP) expanded 70 basis points to 34.5%.
Cash flow from operations totaled $2.0 billion for the quarter. Free cash flow (non-GAAP) was $1.8 billion.
"Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity," said Henrique Braun, CEO of The Coca-Cola Company, in the earnings release. "Our team is motivated by the opportunity to build on the company's great foundation."
#Coca-Cola Updates Full-Year 2026 Guidance
Coca-Cola updated its full-year 2026 guidance, projecting comparable EPS (non-GAAP) growth of 8% to 9% versus $3.00 in 2025. The company maintained its organic revenue (non-GAAP) growth target of 4% to 5%.
The company said comparable net revenues (non-GAAP) are expected to include a 1% to 2% currency tailwind for the full year, offset by an approximate 4% headwind from acquisitions and divestitures. That headwind assumes the pending sale of Coca-Cola Beverages Africa closes in the second half of 2026, subject to regulatory approvals.
For comparable currency neutral EPS excluding acquisitions and divestitures (non-GAAP), the company projects growth of 6% to 7%. Projected free cash flow (non-GAAP) for the full year remains approximately $12.2 billion.
The company's guidance excludes the potential impact of ongoing tax litigation with the U.S. Internal Revenue Service. The underlying effective tax rate (non-GAAP) is estimated at 19.9% for 2026.
Management projected continued organic revenue growth for the full year, though the company acknowledged risks including unfavorable foreign currency exchange rates, geopolitical uncertainty, higher input costs, the outcome of IRS tax litigation, and execution dependencies tied to the Coca-Cola Beverages Africa (CCBA) divestiture. Forward-looking statements are subject to material risks and are not guarantees of future performance.