Coca-Cola Raises Earnings Forecast Despite Weak North American Demand

Coca-Cola raised its full-year 2026 earnings forecast on Tuesday, October 27, after exceeding Wall Street expectations for third-quarter revenue and adjusted earnings. The beverage company increased its profit growth target for the third consecutive quarter, supported by stronger global sales volumes despite sluggish demand in North America.

According to the company's latest outlook, comparable earnings per share are expected to grow at least 11% in 2026, up from the previous forecast of 9% to 10%. Coca-Cola also raised its organic revenue growth projection to at least 5%, slightly above its earlier expectation of approximately 5%.

Coca-Cola reported adjusted earnings of 91 cents per share, beating the 88 cents expected by analysts surveyed by LSEG. Revenue reached $13.4 billion, exceeding the $12.92 billion consensus estimate. The company's shares gained approximately 1% in premarket trading.

Net income attributable to Coca-Cola shareholders climbed to $4.01 billion, or 93 cents per share, in the third quarter, compared with $3.7 billion, or 86 cents per share, in the same period a year earlier. Excluding transaction gains and other items, earnings reached 91 cents per share.

Net sales increased 7% to $13.4 billion, while organic revenue also grew 7%. Coca-Cola's organic revenue measure excludes the effects of acquisitions, divestitures and foreign currency movements.

The company's unit case volume rose 5% worldwide, driven primarily by demand outside North America. In its home market, volume remained unchanged, reflecting the uneven performance of its regional businesses.

Coca-Cola executives have previously described North American consumers as facing financial pressure from inflation and economic uncertainty. The company has also indicated that customers continue purchasing its beverages, including premium dairy products under Fairlife and its flagship soft drinks.

Globally, Coca-Cola's sparkling soft drinks division recorded a 5% increase in volume during the quarter. Growth was supported by demand for Coca-Cola, Coca-Cola Zero Sugar and Diet Coke, according to the company's quarterly results.

The water, sports, coffee and tea division also posted 5% volume growth. Higher demand for water products, including the premium Smartwater brand, contributed to the increase. However, coffee and tea volumes remained flat, while sports drinks recorded a decline.

Coca-Cola's juice, value-added dairy and plant-based beverages division reported unchanged overall volume. Growth in individual brands, including Fairlife and Minute Maid, was not enough to lift volume across the entire category.