Coca-Cola Consolidated (COKE) Q1 2026 earnings summary

Executive summary

• Net sales rose 16.9% year-over-year to $1.85 billion in Q1 2026, driven by strong volume growth and pricing actions, with six additional days in the quarter compared to Q1 2025; adjusted net sales up 8.5% excluding extra days.

• Sparkling beverage volume increased 12.2% (5.3% adjusted) and still beverage volume rose 17.5% (10.2% adjusted), with both categories posting double-digit growth.

• Operating income grew 25.1% to $237.5 million; adjusted operating income up 2.2%.

• Net income was $111.6 million, up 7.7% year-over-year; adjusted net income was $119.5 million, down 12.3% due to non-cash fair value adjustments and extra days.

• Operating margin improved to 12.9% from 12.0% year-over-year; adjusted operating margin declined to 11.4% from 12.1%.

Financial highlights

• Gross profit increased 15.9% to $727.1 million; adjusted gross profit up 6.6%.

• Gross margin declined 30 basis points to 39.4%; adjusted gross margin down 70 basis points to 39.1% due to higher aluminum costs.

• Selling, delivery, and administrative expenses rose 12.0%, with $25 million attributed to extra days; adjusted SD&A up 8.6%.

• Interest expense grew to $32.1 million from $6.9 million, reflecting higher debt balances.

• Cash flow from operations was $205.3 million, up from $198.2 million year-over-year.

Outlook and guidance

• Capital expenditures for 2026 are expected to be approximately $300 million.

• Annual sub-bottling payments for distribution territories are projected at $75–80 million for 2026, and $50–65 million annually for the next five years.

• Management expects continued focus on commercial execution, revenue management, supply chain optimization, and digital selling platforms, and remains optimistic for 2026 amid macroeconomic volatility.