Shares of The Vita Coco Company (NASDAQ: COCO) surged approximately 27% in Wednesday afternoon trading, following the release of better-than-expected first-quarter earnings and an upward revision to its full-year 2026 guidance. The stock was trading at $65.49, reaching an intraday high of $66.59, as investors reacted to the strong performance.
The coconut water producer reported net sales of $180 million for the first quarter, a 37% increase from the prior year, comfortably surpassing analyst expectations. Vita Coco Coconut Water sales alone surged 42%, highlighting sustained consumer demand for the brand. Diluted earnings per share came in at $0.50, up from $0.31 in the same period last year, versus the consensus estimate of $0.34 per share.
Looking ahead, Vita Coco raised its 2026 net sales forecast to a range of $720 million to $735 million, up from the previous guidance of $680 million to $700 million. The company also lifted its adjusted EBITDA outlook to $132 million to $138 million, compared to the earlier range of $122 million to $128 million. Adjusted EBITDA excludes interest, taxes, depreciation, and amortization.
Co-founder and Executive Chairman Michael Kirban expressed pride in the company's start to 2026, citing "global momentum" for the brand and the broader coconut water category. CEO Martin Roper attributed the strong quarter to "very strong branded retail growth" and well-timed promotional activities.
The company's gross margin improved to 39.9%, up from 36.7% in the prior year, driven by pricing power and lower ocean freight costs, which offset higher expenses for finished goods, domestic logistics, and tariffs. Net income attributable to Vita Coco was $30.5 million.
International net sales experienced robust growth, rising 72.5%, while the Americas region posted a 31.6% gain. Case equivalents, a metric based on 12 bottles of 330ml each, increased by 32% for Vita Coco Coconut Water.
Following the earnings release, Evercore ISI analyst Robert Ottenstein raised his price target on Vita Coco to $75 from $70, maintaining an Outperform rating. The firm highlighted that both sales and adjusted EBITDA exceeded Street forecasts.
Despite the positive results, the company faces significant risks. Vita Coco disclosed that two customers accounted for 46% of its net sales in the quarter, while three suppliers represented 49% of purchases. Additionally, tariff refund claims filed in April remain unresolved, with no recoveries reflected in the financial statements. The company ended March with $201.9 million in cash and no borrowings on its $60 million credit line, and it repurchased $11.5 million of its own shares during the quarter.
Competition in the non-alcoholic beverage space remains intense, with rivals including Coca-Cola, PepsiCo, Nestlé, and smaller players like Goya and Harmless Harvest in the coconut water segment. Vita Coco holds over 40% of the U.S. coconut water market as of late 2025.
The key question now is whether consumer demand will sustain once initial promotions fade and summer sales intensify. For now, Vita Coco is trading not as a niche coconut water play, but as a faster-growing beverage stock that has carved out a unique growth trajectory.