Coca-Cola Consolidated (COKE) Q2 2026 earnings summary

Executive summary

• Net sales rose 10.6% year-over-year to $2.05 billion in Q2 2026, driven by 7.6% volume growth, annual pricing actions, and strong demand from major events like America250 and the FIFA World Cup.

• Gross profit increased 4.8% to $778.4 million, but gross margin declined 210 basis points to 37.9% due to elevated aluminum costs from geopolitical conflicts and tariffs; adjusted gross profit rose 6.4%.

• Operating income was $271.3 million, nearly flat year-over-year, while net income fell 15.2% to $158.8 million, impacted by higher interest expense and non-cash fair value adjustments; adjusted net income fell 3.8%.

• For the first half of 2026, net sales grew 13.5% to $3.90 billion, with net income down 7.1% to $270.4 million; results included six extra days compared to the prior year.

Financial highlights

• Q2 2026 net sales: $2.05 billion (+10.6% YoY); gross profit: $778.4 million (+4.8% YoY); operating income: $271.3 million (-0.3% YoY); net income: $158.8 million (-15.2% YoY).

• First half 2026 net sales: $3.90 billion (+13.5% YoY); gross profit: $1.51 billion (+9.9% YoY); operating income: $508.9 million (+10.2% YoY); net income: $270.4 million (-7.1% YoY).

• Gross margin in Q2 2026: 37.9% (down 210 bps YoY); operating margin: 13.2% (down 150 bps YoY); adjusted gross margin: 38.4%; adjusted operating margin: 13.9%.

• Interest expense rose sharply to $30.5 million in Q2 2026 (+$24.5 million YoY) due to higher debt and lower cash balances.

• Cash flow from operations for the first half: $421 million (+$14.4 million YoY); capital expenditures: $147 million.

Outlook and guidance

• Fiscal 2026 capital expenditures expected to be approximately $300 million.

• Annual sub-bottling payments for 2026 estimated at $70–80 million; $50–70 million annually for the next five years.

• Management expects moderated operating expense growth in the second half as incremental investments in front-line wages from the prior year are cycled.

• Focus remains on commercial execution, revenue management, supply chain optimization, and digital selling platforms.