KO · Q2 2026 Earnings

Bullish

Coca-Cola Company (The)

Reported July 28, 2026

30-second summary

30-second take: Coca-Cola printed Q2 revenue of $13.38B (+7% YoY), beating consensus of $13.17B by 1.6%, and non-GAAP EPS of $0.97 beat the $0.93 estimate by 4.3%. Organic revenue grew +6%, decomposed as +4% concentrate sales + +2% price/mix; unit case volume grew +5%, with concentrate sales 1 point behind volume on shipment timing. Management raised FY2026 comparable EPS growth to 9–10% (from 8–9%), currency-neutral EPS growth ex-M&A to 7–8% (from 6–7%), organic revenue growth to ~5% (from 4–5%), and FY FCF to ~$12.4B (from ~$12.2B). Latin America turned into the standout at +16% reported, and Asia Pacific's currency-neutral OI was even in Q2 after a weak first quarter.

Headline numbers

EPS

Q2 FY2026

$0.97

+4.3% vs est.

Revenue

Q2 FY2026

$13.38B

+7.0% YoY

+1.6% vs est.

Gross margin

Q2 FY2026

62.9%

Operating margin

Q2 FY2026

34.9%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$13.38B	$12.54B	+6.7%	$12.47B	+7.3%
EPS	$0.97	$0.87	+11.5%	$0.86	+12.8%
Gross margin	62.9%	62.4%	+50bps	63.0%	-10bps
Operating margin	34.9%	34.1%	+80bps	35.0%	-10bps

Guidance

Full-year EPS and organic revenue guidance raised following stronger-than-expected Q2 beat; currency and M&A headwinds quantified for Q3.

Guidance is issued for both next quarter and the full year. Both may appear below.

New guidance

Metric	Period	Guide	YoY
Comparable net revenues (non-GAAP)	Q3 FY2026	Approx. 1% currency tailwind; Approx. 1% headwind from acquisitions and divestitures	—
Comparable EPS (non-GAAP)	Q3 FY2026	Approx. 3% currency tailwind; Minimal headwind from acquisitions and divestitures	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Organic revenue growth	FY 2026	4% to 5%	Approx. 5%	+0.5pts at midpoint (4.5% → 5%)	Raised
Comparable currency neutral EPS excluding acquisitions and divestitures growth	FY 2026	6% to 7%	7% to 8% growth	+0.5pts at both ends (midpoint 6.5% → 7.5%)	Raised
Comparable EPS growth	FY 2026	8% to 9%	9% to 10% growth	+1pt on both ends (midpoint 8.5% → 9.5%)	Raised
Free cash flow	FY 2026	approximately $12.2 billion	Approx. $12.4 billion, consisting of approx. $14.6 billion of cash from operations and approx. $2.2 billion of capital expenditures	+$0.2B	Raised

Reaffirmed unchanged this quarter: Underlying effective tax rate (19.9%)

Segment performance

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Bottling Investments	$1.527B	$1.411B	+8.2%

Platform metrics

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Unit Case Volume Growth	5%	-1%	—
Organic Revenue Growth (Non-GAAP)	6%	5%	—
Price/Mix Growth	2%	6%	—
Coca-Cola Zero Sugar Volume Growth	16%	—	—
Powerade Volume Growth	8%	—	—

Profitability

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Comparable Operating Margin (Non-GAAP)	35.6%	34.7%	—
Comparable Currency Neutral Operating Income Growth (Non-GAAP)	6%	15%	—
Year-to-Date Free Cash Flow (Non-GAAP)	$6.9B	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
North America	$5.408B	$5.029B	+7.5%
Latin America	$1.839B	$1.587B	+15.9%
Europe, Middle East & Africa	$3.24B	$3.176B	+2.0%
Asia Pacific	$1.581B	$1.572B	+0.6%

Management tone

Tone analysis this quarter is press-release only; transcript commentary was not available. The observations below draw on qualitative statements in the release.

Innovation framing has shifted to an operational answer: "The company is establishing innovation hubs across each of its operating units to translate consumer insights into locally relevant innovations." Innovation is being institutionalized as regional infrastructure — explicitly regional, not global. The signal is that the innovation agenda is moving from rhetoric to operating model.

The consumer-environment language remains "we continue to see a dynamic consumer landscape" — management is neither escalating nor de-escalating tone, and the FY guide raise implies execution against the affordability-plus-premiumization playbook is delivering.

The value-share language — "delivering revenue, profit and earnings growth while also investing for the long term" — pairs the guide raise with a continued reinvestment posture. Combined with the 100bps EPS raise, the message is that management now has enough algorithm cushion to fund forward investment without giving up on the year.

Notably absent from the qualitative statements is any restructuring quantification. This remains an unresolved disclosure item on the KO watch list.

Answers to last quarter's watch list

Q2 FY2026 organic revenue growth and whether the FY 4–5% guide gets raised — Q2 organic printed +6%, above the FY guide, and management moved the FY guide to ~5% (a point-estimate raise of ~50bps midpoint). This is a genuine but modest raise. Management is holding to the ~5% algorithm view rather than validating +6% organic as the new run-rate. Status: Resolved positively (organic beat + guide raised, though the raise is smaller than the Q2 print implies is possible)

Underlying price/mix decomposition and whether the pricing algorithm holds — Q2 headline price/mix printed +2%, matching Q1's headline. The consolidated +2% price/mix with +5% volume confirms the volume-led algorithm is sustaining. Status: Continue monitoring (headline holds; underlying pricing decomposition not disclosed in the release)

Latin America after the Mexico sugar tax — LatAm revenue accelerated to +16% with +3% price/mix, the clearest positive of the print. The Mexico sugar tax has been fully cycled at the top-line level, and value share was gained in Brazil and Mexico. Status: Resolved positively

2026 restructuring scope quantification — The press release contains no charge, headcount envelope, or productivity target. Status: Not resolved

APAC margin trajectory post-inventory item — Q2 APAC revenue was +1% with +8% volume and -9% price/mix, and currency-neutral comparable OI was even (0%) — an improvement from the six-month -8% trajectory. Volume is recovering; price/mix is now the drag. Status: Partially resolved (OI stabilized in Q2; affordability-driven price/mix remains the open question)

CCBA close timing and second-half margin impact — The press release notes the sale is now assumed to close "towards the end of the third quarter or during the fourth quarter of 2026" (prior assumption: second half of 2026). The associated M&A headwind on comparable net revenues improved to 2–3% from ~4%. Status: Partially resolved

What to watch into next quarter

Q3 organic revenue against the newly-raised ~5% FY guide — Q2 ran above algorithm without a range ceiling raise. A third quarter above 5% would increasingly imply management is guiding conservatively into year-end; a step down to ~5% validates the algorithm view.

EMEA whether the +2% Q2 print was timing (concentrate 3pts behind volume) or genuine deceleration — Currency-neutral OI down 5% is the more concerning tell. Watch whether Q3 concentrate shipments normalize and OI recovers.

APAC price/mix trajectory — Q2 -9% price/mix on affordability initiatives is a deep drag even with +8% volume and stabilized OI. Watch whether Q3 price/mix improves or if affordability becomes a structural feature of the APAC model.

Currency-neutral comparable OI growth trajectory — Q2 was +6% vs six-month +9%. Watch whether Q3 stabilizes in the high-single-digits or continues stepping down.

2026 restructuring scope quantification — The absence itself is becoming a data point.

Whether the FY EPS growth guide gets raised further on the Q3 print — A second 100bps raise would put the algorithm conversation back in play; a hold at 9–10% signals management sees the current guide as adequate.

Sources

Coca-Cola Q2 FY2026 Earnings Release, SEC filing — https://www.sec.gov/Archives/edgar/data/21344/000162828026049922/a2026q2earningsreleaseex-9.htm
Tapebrief Q1 FY2026 KO brief — prior-quarter guidance baseline and watch list

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