The Coca-Cola Company reported second-quarter 2026 net revenue of $13.4 billion, representing a 7% increase from the prior-year period, as global beverage volume expanded and the company raised its full-year financial guidance. Organic revenue, which excludes currency movements and structural changes, increased 6%.
Global unit case volume grew 5%, led by India, China, the United States and Brazil. Concentrate sales increased 4%, while price and product mix contributed another 2% to organic revenue growth. Concentrate sales trailed unit case volume by one percentage point because of the timing of shipments to bottling partners.
Operating income increased 9%, and Coca-Cola’s reported operating margin expanded to 34.9% from 34.1% in the second quarter of 2025. Comparable operating margin reached 35.6%, compared with 34.7% a year earlier.
The improvement in comparable operating margin reflected organic revenue growth, lower operating expenses and favorable currency movements. These benefits were partially offset by higher input costs and increased marketing investments, some of which reflected the timing of promotional spending.
Reported earnings per share increased 16% to $1.03. Comparable earnings per share rose 11% to $0.97, including a two-percentage-point benefit from foreign currency movements. Reported earnings included a four-point currency benefit.
Coca-Cola generated $7.5 billion in cash from operations during the first half of 2026, while year-to-date free cash flow reached $6.9 billion. The company also gained value share across the global market for nonalcoholic ready-to-drink beverages.
Sparkling soft drink volume increased 4% during the quarter. Trademark Coca-Cola volume grew 5% across all geographic operating segments, while Coca-Cola Zero Sugar volume increased 16%. Volume for Diet Coke and Coca-Cola Light rose 7%, and sparkling flavor brands grew 4%.
Volume in juice, value-added dairy and plant-based beverages increased 2%. The combined water, sports, coffee, and tea category grew 6%, including 6% growth in water, 5% in sports drinks, and 6% in tea. Coffee volume declined by 2%, primarily due to weakness in the Asia-Pacific region.
Coca-Cola said product innovation contributed to its overall 5% volume growth. The company is establishing innovation hubs within its operating units to identify successful regional products and introduce them into additional markets more quickly.
Examples include Coca-Cola Zero Zero, which offers zero sugar, calories and caffeine, and is expanding across Asia-Pacific and Latin America following its introduction in Europe. Coca-Cola also adapted Sprite+Tea for China with a more lemon-focused flavor and introduced BODYARMOR FIT, a sparkling sports drink containing electrolytes and caffeine.
The company’s FIFA World Cup 2026 campaign was activated across more than 180 markets and more than 20 million retail outlets. Coca-Cola said digital and social promotions generated more than 60 billion impressions and nine billion views, supported by over 2,500 content creators.
The campaign also used connected packaging to engage more than 80 million consumers and collect over 25 million first-party data records. Coca-Cola attributed a portion of the 5% volume increase for Trademark Coca-Cola and the 8% growth for Powerade to the campaign.
In North America, revenue increased 7%, with unit case volume rising 3% and price and product mix contributing 4%. Comparable currency-neutral operating income increased 12%, supported by organic growth and lower operating expenses, partially offset by input cost inflation and marketing investments.
Latin American revenue rose 16%, benefiting from an 11% currency tailwind, 3% volume growth and a 3% price and mix contribution. Reported operating income increased 23%, while comparable currency-neutral operating income grew 4%.
Asia-Pacific unit case volume increased 8%, led by sparkling flavors and Trademark Coca-Cola. However, regional revenue rose only 1% as price and product mix declined 9%, primarily because of unfavorable mix and affordability initiatives intended to reach more consumers.
Europe, the Middle East and Africa reported 4% volume growth and a 2% increase in revenue. Operating income declined 1%, while comparable currency-neutral operating income fell 5% because of higher marketing and operating expenses.
Coca-Cola raised its 2026 organic revenue growth outlook to approximately 5%, compared with its previous forecast of 4% to 5%. The company now expects comparable currency-neutral earnings per share, excluding acquisitions and divestitures, to increase between 7% and 8%, up from the prior range of 6% to 7%.
Comparable earnings per share are now expected to grow between 9% and 10%, including an approximately three-point currency tailwind and a roughly one-point headwind from acquisitions and divestitures. The company’s previous comparable EPS growth outlook was 8% to 9%.
Coca-Cola also increased its projected 2026 free cash flow to approximately $12.4 billion from $12.2 billion. The updated forecast consists of approximately $14.6 billion in operating cash flow and $2.2 billion in capital expenditures.
The outlook assumes Coca-Cola’s pending sale of its African bottling operations closes near the end of the third quarter or during the fourth quarter of 2026, subject to regulatory approvals.
KEY QUOTE:
“We delivered another strong quarter by staying close to the changing needs of our consumers and customers.”
Henrique Braun, CEO of The Coca-Cola Company
