The Coca-Cola Company 8-K
PositiveEarningsGuidance raised
India, China, Mexico and Brazil led volume gains; FY2026 comparable EPS growth guidance rises to at least 11% Y/Y.
Filed 2026-10-27 06:58 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with raised FY2026 guidance. Coca-Cola reported 7% net revenue growth and 5% unit case volume growth, with volume gains led by India, China, Mexico and Brazil. It raised its full-year outlook for organic revenue, comparable EPS and free cash flow, among other measures.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $13.4B, +7% Y/Y | $39.2B, +9% Y/Y |
| Organic revenue (non-GAAP) | +7% Y/Y | +8% Y/Y |
| Gross margin | 63.2%, vs 61.5% | 63.0%, vs 62.1% |
| Operating income | $4.47B, +12% Y/Y | $13.5B, +13% Y/Y |
| Net income attributable to shareowners | $4.01B, +8% Y/Y | $12.4B, +14% Y/Y |
| Diluted EPS | $0.93, +8% Y/Y | $2.86, +14% Y/Y |
| Comparable EPS (non-GAAP) | $0.91, +11% Y/Y | $2.74, +13% Y/Y |
| Operating cash flow | — | $12.5B, +242% Y/Y |
| Free cash flow (non-GAAP) | — | $11.4B, +371% Y/Y |
| Unit case volume | +5% Y/Y | +4% Y/Y |
- Q3 volume growth included 5% growth in sparkling soft drinks, 16% growth in Coca-Cola Zero Sugar and 8% growth in water. Pricing actions lifted price/mix 1%, partly offset by unfavorable mix; concentrate sales ran 2 points ahead of unit case volume due to shipment timing.
- Comparable operating margin (non-GAAP) rose to 32.9% from 31.9%. Organic revenue growth and currency tailwinds supported results, partly offset by higher marketing investment and operating expenses. Coca-Cola gained value share in total nonalcoholic ready-to-drink beverages overall, but lost share in EMEA.
- 9M treasury-stock purchases were $900M vs $644M a year earlier; average shares outstanding were essentially unchanged at 4.302B vs 4.303B.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Organic revenues (non-GAAP) | FY2026 | At least 5% growth | Approx. 5% growth | Raised |
| Comparable net revenues (non-GAAP): currency impact; acquisitions and divestitures impact | FY2026 | ≈1% tailwind; ≈2% headwind | ≈1% tailwind; 2%-3% headwind | Raised |
| Underlying effective tax rate (non-GAAP) | FY2026 | 19.7% | 19.9% | Lowered |
| Comparable currency neutral EPS excluding acquisitions and divestitures (non-GAAP) | FY2026 | At least 9% growth | 7%-8% growth | Raised |
| Comparable EPS (non-GAAP) | FY2026 | At least 11% growth; includes ≈3% currency tailwind and ≈1% acquisitions and divestitures headwind | 9%-10% growth; includes ≈3% currency tailwind and ≈1% acquisitions and divestitures headwind | Raised |
| Free cash flow (non-GAAP) | FY2026 | At least $13.0B; includes at least $15.2B operating cash flow and ≈$2.2B capital expenditures | Approx. $12.4B; includes approx. $14.6B operating cash flow and ≈$2.2B capital expenditures | Raised |
| Comparable net revenues (non-GAAP): currency impact; acquisitions and divestitures impact | Q4 2026 | ≈1% tailwind; ≈4% headwind | — | — |
| Comparable EPS (non-GAAP): currency impact; acquisitions and divestitures impact | Q4 2026 | ≈4% tailwind; ≈3% headwind | — | — |
| Comparable net revenues (non-GAAP): currency impact; acquisitions and divestitures impact | FY2027 | Slight headwind; ≈8% headwind | — | — |
| Comparable EPS (non-GAAP): currency impact; acquisitions and divestitures impact | FY2027 | Slight headwind; ≈2% headwind | — | — |
The company expects to provide FY2027 guidance with its Q4 results.
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Organic revenues (non-GAAP) | FY2026 | ≈5% | At least 5% growth | reaffirmed |
| Underlying effective tax rate (non-GAAP) | FY2026 | 19.9% | 19.7% | lowered |
| Comparable currency neutral EPS excluding acquisitions and divestitures (non-GAAP) | FY2026 | 7%-8% | At least 9% growth | raised |
Investor Takeaways
- Track Q4 volume and pricing against the FY2026 outlook; sustained unit case growth would support the quarter’s volume-led growth story, while the company also expects six fewer calendar days to affect Q4 financial results versus the prior year.
- Watch for regulatory approval and completion of the pending sale of Coca-Cola’s bottling operations in Africa, which the FY2026 outlook assumes will close in Q4.
- The Q4 earnings release will provide formal FY2027 guidance; the company currently cites currency and acquisitions and divestitures as headwinds to comparable revenue and EPS growth.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-27 14:41:34Z