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

Executive summary

• Net revenues for Q2 2026 grew 7% year-over-year to $13.4 billion, with organic revenues up 6% and global unit case volume up 5%.

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

• Value share gains were achieved in total nonalcoholic ready-to-drink beverages, with strong performance in key markets and categories.

• FIFA World Cup campaign drove record engagement and contributed to the strongest trademark Coca-Cola volume growth in 17 years, with 5% volume growth for Trademark Coca-Cola and 8% for Powerade.

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

Financial highlights

• Gross profit for Q2 2026 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), both up from the prior year.

• Free cash flow reached $6.9 billion year-to-date, and cash flow from operations was $7.54 billion for the six months.

• Net income attributable to shareowners was $4.43 billion for Q2 2026, up 16% year-over-year.

• Net debt leverage at 1.4x EBITDA, below the target range.

Outlook and guidance

• Full-year 2026 organic revenue growth is projected at approximately 5%, with a 1% currency tailwind and a 2–3% headwind from acquisitions/divestitures.

• Comparable EPS (non-GAAP) is expected to grow 9–10%, including a 3% currency tailwind and a 1% headwind from acquisitions/divestitures.

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

• Full-year effective tax rate is projected at approximately 19.9%, excluding potential impact from ongoing IRS litigation.

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