Coca-Cola raises profit forecast after Q1 revenue jumps 12% to US$12.5B
Coca-Cola raises its 2026 profit forecast after strong Q1 results, driven by global demand growth, higher revenues, and improved margins across key beverage categories.
USA – The Coca-Cola Company has raised its full-year profit outlook after reporting stronger-than-expected first-quarter results, highlighting continued resilience in global demand despite ongoing economic pressures.
The beverage giant now expects adjusted earnings per share to grow between 8% and 9% in 2026, up from its previous forecast of 7% to 8%.
The upward revision follows a solid start to the year, with net revenues rising 12% to $12.5 billion during the quarter. Organic revenues, which exclude currency impacts and acquisitions, increased 10%, supported by an 8% rise in concentrate sales and a 2% improvement in price and product mix.
Earnings performance also strengthened, with reported earnings per share climbing 18% to 91 cents. Comparable earnings per share on a non-GAAP basis rose by the same margin to 86 cents.
Operating income increased 19%, while operating margin expanded to 35.0%, compared with 32.9% in the same period last year.
Henrique Braun, CEO of The Coca-Cola Company, said the company’s results reflect strong execution across markets.
“We’ve had a strong start to the year. Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity. Yet there’s so much more we can do as we navigate a dynamic environment. Our team is motivated by the opportunity to build on the company’s great foundation,” he said.
Volume growth remained positive across all four geographic segments, with total unit case volume rising 3%, outpacing the 2% growth in price.
North America recorded a 4% increase in unit case volume, driven by strong demand for flagship beverages and growth in water, sports drinks, coffee, and tea.
Asia Pacific led regional growth with a 5% increase in unit case volume, although operating income in the region declined due to higher input costs and increased marketing investments.
Europe, the Middle East, and Africa posted a 2% increase in volume, while Latin America recorded a 1% rise. Across product categories, water, sports drinks, coffee, and tea grew by 5%, while sparkling soft drinks increased by 2%. Juice, value-added dairy, and plant-based beverages declined by 1%.
The company continues to invest in evolving consumer preferences, expanding offerings in low- and zero-sugar beverages, bottled teas, and dairy alternatives such as Fairlife. It has also introduced smaller pack sizes to cater to cost-conscious consumers amid rising living expenses.
Despite higher input costs linked to energy price increases, the company’s diversified portfolio and global scale have supported its performance.
Earlier this month, rival PepsiCo topped quarterly expectations, helped by resilient demand for diet sodas as well as its move to cut prices on some key snack brands such as Lay’s. The company warned of a more volatile macroeconomic environment due to geopolitical strife.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
