The Coca-Cola Company 8-K
PositiveEarningsGuidance raised
Concentrate sales and price/mix drive growth; raised FY2026 guidance assumes the Africa bottling sale closes in late Q3 or Q4.
Filed 2026-07-28 06:58 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with raised FY2026 guidance. Net revenue grew 7% and unit case volume 5%; organic revenue (non-GAAP) grew 6%, driven by concentrate sales and price/mix growth. Coca-Cola raised its full-year revenue, comparable EPS and free cash flow outlooks, while the underlying effective tax rate outlook was unchanged.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Net revenue | $13.4B | $12.5B | 7% |
| Operating income | $4.67B | $4.28B | 9% |
| Net income attributable to shareowners | $4.43B | $3.81B | 16% |
| Diluted EPS | $1.03 | $0.88 | 16% |
| Comparable diluted EPS (non-GAAP) | $0.97 | $0.87 | 11% |
- Revenue growth reflected 4% higher concentrate sales and 2% price/mix growth. GAAP operating margin increased 77 bp to 34.9%; comparable operating margin (non-GAAP) rose 86 bp to 35.6%, supported by organic revenue growth, lower operating expenses and currency tailwinds, partly offset by higher input costs and marketing investment.
- YTD consolidated net income was $8.40B, up 18%; operating cash flow was $7.54B vs $(1.39)B, and free cash flow (non-GAAP) was $6.86B. Lower operating-asset and liability cash outflows contributed to the operating cash flow comparison.
- YTD treasury stock purchases were $663M vs $472M; average diluted shares were 4.313B vs 4.314B. Cash, cash equivalents and short-term investments totaled $13.5B; total debt carrying value was $43.5B, down from $45.5B at year-end 2025.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Organic revenue (non-GAAP) growth | FY2026 | ≈5% | 4%-5% | Raised |
| Comparable net revenue (non-GAAP): currency tailwind | FY2026 | ≈1% | 1%-2% | Lowered |
| Comparable net revenue (non-GAAP): acquisitions and divestitures headwind | FY2026 | 2%-3% | ≈4% | Reduced headwind |
| Underlying effective tax rate (non-GAAP) | FY2026 | 19.9% | 19.9% | Reaffirmed |
| Comparable currency-neutral EPS excluding acquisitions and divestitures (non-GAAP) growth | FY2026 | 7%-8% | 6%-7% | Raised |
| Comparable EPS (non-GAAP) growth, including ≈3% currency tailwind and ≈1% acquisitions and divestitures headwind | FY2026 | 9%-10% | 8%-9% | Raised |
| Free cash flow (non-GAAP) | FY2026 | ≈$12.4B, including ≈$14.6B operating cash flow and ≈$2.2B capital expenditures | ≈$12.2B, including ≈$14.4B operating cash flow and ≈$2.2B capital expenditures | Raised |
| Operating cash flow (GAAP) | FY2026 | ≈$14.6B | ≈$14.4B | Raised |
| Capital expenditures (GAAP) | FY2026 | ≈$2.2B | ≈$2.2B | Reaffirmed |
| Comparable net revenue (non-GAAP): currency tailwind | Q3 2026 | ≈1% | — | — |
| Comparable net revenue (non-GAAP): acquisitions and divestitures headwind | Q3 2026 | ≈1% | — | — |
| Comparable EPS (non-GAAP): currency tailwind | Q3 2026 | ≈3% | — | — |
| Comparable EPS (non-GAAP): acquisitions and divestitures headwind | Q3 2026 | Minimal | — | — |
Investor Takeaways
- Watch Q3 results against the stated currency and acquisitions-and-divestitures effects, and FY2026 performance against the raised growth and cash flow outlooks.
- The full-year outlook assumes the pending sale of Coca-Cola’s Africa bottling operations closes toward the end of Q3 or during Q4 2026, subject to regulatory approval.
- The 19.9% underlying tax-rate outlook excludes the impact of the ongoing IRS tax litigation if Coca-Cola does not prevail.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3