Key Highlights

  • Net revenues grew 7% to USD 13.4 billion, and organic revenues grew 7% on concentrate sales growth of 7%.
  • Unit case volume grew 5%, led by India, China, Mexico and Brazil, while price/mix added 1%.
  • Comparable operating margin was 32.9% against 31.9% a year earlier, and comparable EPS rose 11% to USD 0.91.
  • Full-year guidance now calls for organic revenue growth of at least 5% and comparable EPS growth of at least 11%.

Volume and Revenue Drive the Quarter

Coca-Cola (NYSE:KO) reported third quarter 2026 results on Tuesday and raised its full-year guidance. Net revenues grew 7% to USD 13.4 billion, and organic revenues grew 7%, driven by a 7% increase in concentrate sales and 1% growth in price/mix. Concentrate sales ran 2 points ahead of unit case volume because of the timing of concentrate shipments. Chief Executive Henrique Braun said the results show sustained momentum and give confidence in the updated guidance.

Unit case volume grew 5%. Sparkling soft drinks grew 5%, with Trademark Coca-Cola up 5% and Coca-Cola Zero Sugar up 16%. Water grew 8%, while juice, value-added dairy and plant-based beverages was even, as growth in fairlife, Maaza and Minute Maid was offset by the late 2025 sale of the company's finished product operations in Nigeria. Sports drinks declined 3%. The company gained value share in total nonalcoholic ready-to-drink beverages.

Margins, Earnings and Regions

Operating income grew 12%, and comparable currency neutral operating income grew 8%. Operating margin was 33.4% versus 32.0% a year earlier. Comparable operating margin was 32.9% versus 31.9%, supported by organic revenue growth and currency tailwinds and partly offset by higher marketing investment and operating expenses.

EPS grew 8% to USD 0.93, and comparable EPS grew 11% to USD 0.91, including a 2-point currency tailwind. By region, unit case volume grew 5% in Europe, Middle East and Africa, 6% in Latin America, 6% in Asia Pacific and 8% in Bottling Investments, and was flat in North America. Latin America organic revenues grew 16%, against 3% in North America.

Cash Flow and Updated Guidance

Year-to-date cash flow from operations was USD 12.5 billion and free cash flow was USD 11.4 billion. On the call, management put net debt leverage at 1.3 times EBITDA, below the company's target range of 2 to 2.5 times.

For 2026, management now guides to organic revenue growth of at least 5%, up from approximately 5%, and comparable EPS growth of at least 11%, up from 9% to 10%, including an approximate 3% currency tailwind. Comparable currency neutral EPS growth excluding acquisitions and divestitures is guided to at least 9%, up from 7% to 8%. The underlying effective tax rate is guided to 19.7%, and free cash flow to at least USD 13.0 billion. The updated figures assume the pending sale of the company's bottling operations in Africa closes in the fourth quarter of 2026. Management said it provides full-year 2027 guidance when it reports fourth quarter earnings.

Beverage Demand Markers to Follow

Tracking points include unit case volume against 5% growth, the gap between concentrate sales and volume, and price/mix against 1% growth. Further items are North America volume, which was flat, the effect of destocking and fewer days on the fourth quarter, and the closing of the Africa bottling sale.