Coca-Cola (KO) Q2 2026 earnings

Coca-Cola on Tuesday reported quarterly earnings and revenue that topped Wall Street’s estimates, fueled by higher demand for its drinks, thanks in part to the World Cup.

“We had, during the World Cup, really a great opportunity for us to shine our brands,” CEO Henrique Braun said on CNBC’s “Squawk on the Street” on Tuesday. “During the hydration breaks, Powerade was there.”

The company also hiked its full-year forecast. Coke is now projecting comparable earnings per share growth of 9% to 10%, up from its prior forecast of 8% to 9%. It also expects organic revenue to increase about 5%, on the high end of its earlier range of 4% to 5%.

Shares of Coke rose more than 7% in morning trading, hitting a record high.

Here’s what the company reported compared with what Wall Street analysts surveyed by LSEG were expecting:

• Adjusted earnings per share: 97 cents, vs. expected 93 cents
• Revenue: $13.38 billion, vs. $13.16 billion expected

Coke reported second-quarter net income of $4.43 billion, or $1.03 per share, up from $3.81 billion, or 89 cents per share, a year earlier.

Excluding asset impairments, restructuring costs and other items, the company earned 97 cents per share.

Net sales rose 7% to $13.38 billion. Coke’s organic revenue, which excludes acquisitions, divestitures and currency fluctuations, jumped 6% in the quarter.

The company’s global unit case volume increased 5%, and every one of its reporting segments saw volume growth. The metric strips out pricing to reflect demand more accurately.

The consumer environment is “dynamic,” CEO Henrique Braun said in a statement. The comment followed rival PepsiCo saying that shoppers’ budgets tightened in the second quarter, leading to weaker sales in the U.S. for its snacks and drinks.

Global oil prices have swung dramatically due to the U.S. war with Iran, leading many consumers to temper their spending. In Coke’s home market, the national average gas price hit a four-year high of $4.56 per gallon in late May.

“The economy is strong in many places, yet many consumers face inflationary pressures, geopolitical uncertainty and economic challenges,” Braun said on the company’s earnings conference call. “They are evaluating how they shop, what they value and what they want to put in their basket.”

But Coke’s results do not show consumers cutting back. Even in North America, volume grew 3% in the quarter.

The company credited its global World Cup campaign with driving higher demand. Two drinks in particular, its namesake soda and Powerade, saw higher volumes that the company attributed, in part, to the tournament’s marketing. Coke volume increased 5% — the drink’s biggest quarterly jump in 17 years, excluding the pandemic — and Powerade volume climbed 8% in the quarter.

Coke’s water, sports, coffee and tea segment was the top performer this quarter, with volume growth of 6%. Out of those four categories, all but coffee saw their volume increase during the quarter.

Coke is staging a turnaround of its Costa Coffee…