The Coca-Cola Company (KO) Q2 2026 earnings summary

Executive summary

• Achieved strong first half and Q2 2026 results, with 7% net revenue growth to $13.4 billion, 6% organic revenue growth, and 5% global unit case volume growth, supported by broad-based momentum and double-digit earnings growth.

• Operating income increased 9% year-over-year, and EPS rose 16% to $1.03; comparable EPS (non-GAAP) grew 11% to $0.97.

• Gross and operating margins expanded, driven by organic revenue growth, lower operating expenses, and margin tailwinds from divestitures, despite higher input costs and increased marketing investments.

• FIFA World Cup campaign drove record engagement, contributing to the strongest Trademark Coca-Cola volume growth in 17 years and 8% Powerade growth.

• Continued focus on consumer-centricity, digital transformation, and innovation, including new product launches and innovation hubs.

Financial highlights

• Q2 2026 gross profit was $8.4 billion, up 8% year-over-year, with a gross margin of 62.9%; operating margin improved to 34.9% (GAAP) and 35.6% (comparable non-GAAP).

• Comparable EPS of $0.97, up 11% year-over-year, with a 2-point benefit from currency; basic and diluted EPS for Q2 2026 was $1.03, up 16%.

• Free cash flow reached $6.9 billion year-to-date, with cash and cash equivalents at $12.9 billion at quarter-end.

• Net debt leverage at 1.4x EBITDA, below the target range; long-term debt decreased to $37.0 billion.

• Year-to-date dividends paid totaled $4.6 billion; capital expenditures were $684 million.

Outlook and guidance

• Raised full-year 2026 guidance: organic revenue growth expected at ~5%, with a 1% currency tailwind and a 2–3% headwind from acquisitions/divestitures.

• Comparable currency-neutral EPS growth (excluding M&A) now expected at 7%-8%; full-year comparable EPS growth expected at 9%-10%.

• Free cash flow (non-GAAP) for 2026 projected at approximately $12.4 billion.

• Divestitures, notably CCBA and Nigeria, to be a 2%-3% headwind to net revenues and ~1% to EPS.

• Fourth quarter will have six fewer days due to calendar shift.