Coca-Cola stock jumps 3% after earnings beat estimates

Shares of The Coca-Cola Company rose over 3% in premarket trading on Tuesday after the beverage giant reported stronger-than-expected first-quarter results and raised its full-year profit forecast, supported by steady demand for its higher-priced drinks.

The company also maintained its organic revenue growth outlook for 2026, signalling confidence in its pricing strategy and product mix despite ongoing economic pressures.

Revenue growth driven by increase in concentrate sales

Coca-Cola reported first-quarter revenue of $12.47 billion, growing by 12%, ahead of analyst expectations of $12.24 billion, according to data compiled by LSEG.

The revenue growth was driven by an 8% increase in concentrate sales and 2% growth in price/mix, the company said.

Net earnings per share rose 18% to $0.91, while comparable earnings per share grew 18% to $0.86.

The performance was aided in part by currency tailwinds.

Global unit case volume, a key measure of demand, increased 3% during the quarter, indicating continued consumption growth even as consumers face higher living costs.

“We’ve had a strong start to the year,” said Henrique Braun, CEO of The Coca-Cola Company.

Outlook lifted amid competitive landscape

Coca-Cola raised its full-year earnings outlook, now expecting comparable earnings per share to grow between 8% and 9%, up from its previous forecast of 7% to 8%.

The company reaffirmed its organic revenue growth target of 4% to 5%.

The results come shortly after rival PepsiCo also reported strong quarterly performance, driven by resilient demand for diet beverages and pricing adjustments across its snack portfolio.

Coca-Cola’s ability to sustain demand for premium products, even in a mixed economic environment, highlights the company’s pricing power and brand strength.

Premium and healthier products gain traction

The company’s growth was supported by strong performance in premium and health-focused categories, including zero-sugar beverages, bottled water and teas.

Coca-Cola Zero Sugar saw global volume rise 13%, while water and tea categories grew 5% and 8%, respectively.

The sparkling soft drinks segment posted a 2% increase in volume, driven largely by gains in zero-sugar offerings.

Coca-Cola has been investing in brands such as Fairlife and expanding its portfolio of low- and no-sugar drinks to align with changing consumer preferences.

The company has also introduced smaller pack sizes to appeal to cost-conscious consumers, even as it continues to benefit from stronger spending among higher-income households.

Regional performance remains mixed

Regionally, North America led growth with a 4% increase in unit case volume, supported by demand across core soda and non-carbonated categories.

Asia Pacific recorded a 5% rise in volume across all beverage segments, although operating income declined due to higher input costs and increased marketing investments.

Europe, the Middle East and Africa reported 2% growth in volume, while Latin America saw a modest 1% increase.

However, the juice, value-added dairy and plant-based segment lagged, with volume declining 1% during the quarter.

Gains from brands such as Fairlife and Santa Clara were offset by the impact of divestitures, including the sale of operations in Nigeria.