Coca-Cola raises 2026 guidance as third-quarter revenue beats expectations

Earnings per share came in at $0.91, in line with expectations, and the company now expects free cash flow of at least $13.0B.

Coca-Cola raised its full-year 2026 guidance after reporting third-quarter revenue of $13.38B, above the $13.31B expected. Earnings per share were $0.91, in line with expectations.

Henrique Braun, chief executive of Coca-Cola, said the quarter showed the system's "sustained momentum". He said this gives the company confidence in its updated full-year guidance.

The company now expects organic revenue growth of at least 5 per cent for the year, up from approximately 5 per cent. It expects comparable earnings per share (EPS) growth of at least 11 per cent, up from 9 to 10 per cent. On a currency-neutral basis, excluding acquisitions and divestitures, comparable EPS growth is now guided to at least 9 per cent, up from 7 to 8 per cent. Free cash flow is guided to at least $13.0B, up from approximately $12.4B. The underlying effective tax rate is lowered to 19.7 per cent, from 19.9 per cent.

The raise comes alongside a run of portfolio moves that suggest Coca-Cola is tightening its focus on core beverage distribution rather than diversifying. A switch of KFC's fountain drinks from PepsiCo, due in January, was reported on October 15. A reported effort to unwind the Costa Coffee acquisition was reported on October 8. Raising free cash flow guidance while restructuring its marketing agency roster points to a company moving resources on several fronts at once, rather than reacting to a single event. The lower tax rate adds a modest, non-operating lift to the EPS growth target. That is separate from the organic revenue growth behind the headline raise.