Coca-Cola opened 2026 with results exceeding Wall Street expectations, under the leadership of new CEO Henrique Braun. The stock reacts with an increase of around 3% in the pre-market circuit, crowning a very positive start to 2026, which has seen prices grow by 9.5% since the beginning of the year.
Net revenues grew 12% to $12.5 billion, exceeding the consensus of $12.24 billion, while organic revenues (non-GAAP) increased 10%, driven by an 8% increase in concentrate sales and a 2% growth in price/mix. Volumes per unit case increased 3% globally, with the company gaining market share in ready-to-drink soft drinks.
Margins increasing
Operating margin expanded to 35.0% from 32.9% in the prior year, while comparable operating margin (non-GAAP) increased to 34.5% from 33.8%, driven by organic revenue growth and lower operating costs, partially offset by higher raw material costs and increased marketing investments. EPS grew 18% to $0.91, with comparable EPS (non-GAAP) at $0.86 (+18%) higher than the $0.81 expected by analysts. Operating cash flow stood at 2.0 billion and free cash flow at 1.8 billion.
The foundations of growth
Driving the growth were zero-sugar drinks and small-sized packages, which are finding favor with consumers in a context of more careful spending also due to the effect of energy increases linked to the war in the Middle East. CEO Henrique Braun commented:
“We’ve had a great start to the year. Our results this quarter reflect our unwavering focus on staying close to the consumer, operating locally and managing complexity. However, we can do so much more in a dynamic environment. Our team is motivated by the opportunity to build on the company’s strong foundation.”
The 2026 outlook revised upwards
On full-year 2026 guidance, Coca-Cola confirmed organic revenue growth (non-GAAP) of 4-5%, while raising its comparable EPS growth forecast (non-GAAP) to 8-9% from 7-8% previously indicated, with a favorable currency effect estimated at approximately 3% at current rates. Currency-free EPS growth excluding acquisitions and divestitures is expected at 6-7%. Free cash flow is estimated at approximately $12.2 billion, with operating cash flow at $14.4 billion and capex at $2.2 billion. The group has updated its estimates also taking into account the expected sale of Coca-Cola Beverages Africa in the second half of 2026, which will lead to a negative effect of approximately 4% on comparable revenues and 1% on EPS.
