Coca-Cola (KO) Q1 2026 earnings summary

Executive summary

• Net revenues increased 12% year-over-year to $12.5 billion, with organic revenues up 10% and global unit case volume up 3%.

• EPS grew 18% to $0.91, with comparable EPS (non-GAAP) also up 18% to $0.86, and net income attributable to shareowners rose 18% to $3.92 billion.

• Operating margin improved to 35.0% from 32.9% in the prior year, with comparable margin at 34.5%.

• Value share gained in total nonalcoholic ready-to-drink beverages globally for the 20th consecutive quarter.

• Focused on consumer-centric strategies, digital capabilities, and innovation to drive balanced long-term growth.

Financial highlights

• Gross profit increased 13% to $7.85 billion, with gross margin at 63.0%.

• Free cash flow reached $1.8 billion, and cash flow from operations was $2.0 billion.

• Operating income rose 19% to $4.36 billion, with net cash provided by operating activities at $2.02 billion.

• Effective tax rate was 14.0%, down from 17.8% in Q1 2025, aided by discrete tax benefits.

• Dividends paid totaled $2.28 billion, with share repurchases of $477 million.

Outlook and guidance

• Full-year 2026 organic revenue (non-GAAP) growth expected at 4% to 5%.

• Comparable EPS (non-GAAP) growth projected at 8% to 9% versus $3.00 in 2025, with a 3% currency tailwind and 1% headwind from acquisitions/divestitures.

• Free cash flow (non-GAAP) for 2026 expected at approximately $12.2 billion.

• Underlying effective tax rate (non-GAAP) estimated at 19.9%.

• Divestitures, including the pending sale of Coca-Cola Beverages Africa, expected to be a 4-point headwind to net revenues and 1-point to EPS.