TLDR
- Coca-Cola (KO) stock traded at $92.36 in early trading, down 0.37% from the prior close of $92.70.
- Q3 adjusted EPS was $0.91 against a $0.88 forecast, and revenue was $13.4 billion against $12.93 billion expected.
- Organic revenue rose 7% and unit case volume grew 5%.
- Coca-Cola raised its full-year EPS growth outlook to at least 11%, its third guidance increase in a row.
- North America volume was flat, and management flagged destocking and higher logistics costs for Q4.
Coca-Cola (KO) stock traded at $92.36 in early trading Tuesday, down 0.37% from the previous close of $92.70. The move came after the company beat third-quarter estimates.
The stock sits near the top of its 52-week range, with a high of $95.37 and a low of $67.27. It is up about 35% so far this year.
Adjusted earnings came in at $0.91 a share, ahead of the $0.88 forecast. Revenue hit $13.4 billion, beating the $12.93 billion analysts expected.
Growth Across Regions
Organic revenue rose 7%, and unit case volume grew 5%. Underlying pricing actions added 4 points to the total.
Price mix contributed 1%. Comparable gross margin rose about 170 basis points, while comparable operating margin gained about 110 basis points.
North America posted revenue growth and value share gains, but volume was flat. Management pointed to the timing of July 4 and some finished-goods challenges.
Latin America picked up speed, and Asia Pacific delivered volume, revenue and profit growth. Europe grew volume but lost some value share in key western markets.
Africa and the Middle East posted strong results despite geopolitical disruptions. Coke has now gained global value share for 22 straight quarters.
Guidance and Cash Flow
Coca-Cola raised its full-year outlook for the third quarter in a row. It now expects EPS to grow at least 11%, up from a prior range of 9% to 10%.
The company still expects at least 5% organic revenue growth in 2026. It also sees free cash flow of at least $13 billion for the year.
Free cash flow reached $11.4 billion year to date. Net debt leverage is 1.3 times EBITDA, below the company’s target range.
CEO Henrique Braun said, “We are acting with speed and discipline, enabling us to deliver strong results in an uneven environment.” He added that affordability and zero sugar are both helping win consumers.
CFO John Murphy said the company’s actions “position us to enter 2027 ready to execute.” The beat was solid, if not flashy.
Management flagged a few Q4 items, including six fewer selling days, slight destocking and ongoing logistics cost pressure. The planned refranchising of Coca-Cola Beverages Africa could also weigh on results.
Operating margin reached 33.4%, up from 32% a year earlier. Management also said demand in the U.S. remains weak as consumers deal with high living costs.
The stock pays a 2.29% dividend yield, and Coca-Cola has raised its payout for 56 straight years. By late morning Tuesday, KO was trading at $92.20, down 0.54% on the day.
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