Shares of The Coca-Cola Company (NYSE:KO) surged nearly 4% in premarket trading on Tuesday, July 28, 2026, reaching approximately $87.20, after the beverage giant reported second-quarter earnings that surpassed analyst estimates and raised its full-year outlook. The gains reflect investor enthusiasm for a rare combination of accelerating volume growth and margin expansion.
The company posted adjusted earnings per share of $0.97, beating consensus by four cents, on net revenue of roughly $13.4 billion, which exceeded the $13.16 billion forecast. Organic revenue rose 6% year-over-year, a one-percentage-point improvement from the prior quarter, driven by a 5% increase in global unit case volume—a sharp turnaround from a 1% decline in the same period last year.
Key to the quarter’s success was a shift in growth strategy. Coca-Cola achieved higher sales volumes while reducing reliance on price increases. Price/mix growth slowed to 2% from 6% a year ago, as the company focused on affordability and volume expansion. This strategy allowed the comparable operating margin to widen by 90 basis points to 35.6%, demonstrating that volume-led growth can still drive profitability.
“We are attentive to the changing needs of our consumers and customers,” said Chief Executive Henrique Braun. “Our system increased its value share as we continued to invest for the long term.” The company’s flagship brands performed strongly: Coca-Cola Zero Sugar volume climbed 16%, Trademark Coca-Cola rose 5%, and Diet Coke increased 7%.
The FIFA World Cup provided a significant tailwind. Coca-Cola’s marketing campaign helped boost Trademark Coke volume by 5% and Powerade by 8%. CFO John Murphy noted that hydration breaks during the tournament created additional advertising opportunities and lifted Powerade demand. “We are not unhappy with those pauses,” he told Reuters.
Regionally, North America delivered stable results with volume up 3%, price/mix up 4%, and comparable operating income at constant currency rising 12%. Asia Pacific saw volume jump 8%, but price/mix declined 9% due to affordability initiatives and an unfavorable product mix, leading to a decrease in value share as weakness in India outweighed gains elsewhere.
For the full year, Coca-Cola now expects comparable EPS growth of 9% to 10%, up from the prior range of 8% to 9%. Organic revenue growth is projected at roughly 5%, and free cash flow guidance was raised to approximately $12.4 billion. The outlook includes a projected three-percentage-point benefit from currency and a one-point drag from acquisitions and divestitures. At constant currency, excluding transactions, EPS growth is expected at 7% to 8%.
Looking ahead, risks remain. Aluminum and PET resin costs have risen beyond initial expectations. Additionally, the company’s Fairlife unit has largely restored production after a ransomware attack, with no material financial impact anticipated. However, maintaining volume momentum after the World Cup and facing tougher currency comparisons in 2027 will be key challenges.
Compared with rival PepsiCo (NASDAQ:PEP), which maintained its forecast for 2%–4% organic revenue growth and 4%–6% core constant-currency EPS growth, Coca-Cola’s short-term momentum appears stronger. This quarter marked a notable improvement in the quality of growth, shifting from price-driven to volume-driven expansion.
