Coca-Cola third-quarter revenue rises 7% to $13.4 billion as volume grows 5%

The Coca-Cola Company (KO) said in a regulatory filing on Tuesday that third-quarter net revenue rose 7% to $13.4 billion, and it raised its full-year 2026 guidance. The quarter ended Oct. 2.

Organic revenue, which strips out acquisitions, divestitures and currency, also grew 7%. Operating income rose 12%, and comparable currency neutral operating income, a non-GAAP measure, rose 8%.

Here's how the company did:

• Net operating revenues: $13,380 million vs. $12,455 million a year earlier
• Operating income: $4,465 million vs. $3,982 million a year earlier
• Net income attributable to shareowners: $4,009 million vs. $3,696 million a year earlier
• Diluted earnings per share: 93 cents vs. 86 cents a year earlier
• Comparable EPS (non-GAAP): 91 cents vs. 82 cents a year earlier

Diluted earnings per share grew 8%, and comparable EPS, which excludes items the company treats as affecting comparability, grew 11%. Both measures included a 2-point currency tailwind, the company said.

Unit case volume grew 5%, led by India, China, Mexico and Brazil. Concentrate sales rose 7%, and price/mix added 1%.

Concentrate sales ran 2 points ahead of unit case volume because of the timing of concentrate shipments.

Acquisitions and divestitures reduced consolidated net revenue growth by 1 point, including the sale of the company's finished product operations in Nigeria in the fourth quarter of 2025.

Operating margin was 33.4%, versus 32.0% a year earlier. Comparable operating margin was 32.9%, versus 31.9%.

Selling, general and administrative expenses rose 10% to $3,975 million. The company said higher operating expenses and an increase in marketing investments partly offset its organic revenue growth.

The company recorded $192 million of settlement charges and special termination benefits tied to a non-U.S. pension plan in the quarter. It excluded those charges from its comparable results.

For the first nine months, net operating revenues rose 9% to $39,232 million, operating income rose 13% to $13,496 million, and diluted earnings per share rose 14% to $2.86 per share.

Year-to-date cash flow from operations was $12.5 billion, and free cash flow, a non-GAAP measure, was $11.4 billion. The company also said it gained value share in total nonalcoholic ready-to-drink beverages.

“Our results this quarter demonstrate our system’s sustained momentum, giving us confidence in our updated full year guidance,” CEO Henrique Braun said. “By staying close to consumers and executing with agility across our global system, we are delivering quality growth while continuing to invest in the capabilities, brands and people that will fuel our future.”

The company now expects organic revenue growth of at least 5%, compared with its prior outlook of approximately 5%. It expects comparable EPS growth of at least 11%, up from 9% to 10%.

Comparable currency neutral EPS excluding acquisitions and divestitures is now expected to grow at least 9%, compared with 7% to 8% previously.

Free cash flow is now expected to be at least $13.0 billion, up from approximately $12.4 billion. That reflects operating cash flow of at least $15.2 billion, against approximately $14.6 billion before, and capital expenditures of approximately $2.2 billion, unchanged.

The underlying effective tax rate is now 19.7%, versus 19.9% previously.

The current outlook assumes the pending sale of the company's bottling operations in Africa closes in the fourth quarter of 2026. The prior outlook assumed a close toward the end of the third quarter or in the fourth quarter. Closing is subject to regulatory approvals.

For the fourth quarter, the company expects comparable net revenue to carry a currency tailwind of about 1% and a headwind of about 4% from acquisitions and divestitures. Comparable EPS is expected to include a currency tailwind of about 4% and a headwind of about 3% from acquisitions and divestitures.

The company will provide full-year 2027 guidance when it reports fourth-quarter earnings. For 2027, it flagged a slight currency headwind and an approximately 8% headwind to comparable net revenue from acquisitions and divestitures.

EMEA, the company's Europe, Middle East and Africa segment, had net revenue of $3,104 million, up 4%, and operating income of $1,171 million, up 7%. Unit case volume rose 5%. The company said the segment lost value share, as gains in Nigeria and Morocco were more than offset by losses in France and the United Kingdom.

Latin America revenue rose 25% to $1,958 million, and operating income rose 29% to $1,152 million. Unit case volume grew 6%, and price/mix grew 7%.

North America revenue rose 3% to $5,386 million, and operating income rose 5% to $1,766 million. Unit case volume was even, as growth in Trademark Coca-Cola offset a decline in water, sports, coffee and tea.

Asia Pacific revenue rose 4% to $1,563 million, and operating income rose 8% to $563 million. Unit case volume grew 6%, while price/mix fell 2%.

Bottling Investments revenue rose 13% to $1,523 million. Operating income rose to $205 million from $57 million a year earlier, and unit case volume grew 8%, led by India and South Africa.