Coca-Cola tops 2Q estimates for revenue and profit

ATLANTA – Coca-Cola Co. today reported second-quarter earnings and revenue that topped Wall Street’s estimates, citing strong demand for its beverages.

The company raised its guidance for the full year ending December 31. Coca-Cola is now projecting revenue to increase about 5%, on the high end of its earlier range of 4% to 5%. The company now expects comparable earnings-per-share growth of 9% to 10%, up from the earlier 8% to 9% projection.

Coca-Cola said second-quarter revenue rose 7% to $13.3 billion, leading to net income of 4.4 billion, an increase of 6% when acquisitions, divestitures and currency fluctuations are excluded.

Zero- and low-calorie colas were a source of Coca-Cola’s strength in the period. Sales volumes for Coca-Cola Zero Sugar and Diet Coke rose 16% and 7%, respectively.

“The economy is strong in many places, yet many consumers face inflationary pressures, geopolitical uncertainty and economic challenges. They are evaluating how they shop, what they value and what they want to put in their basket,” CEO Henrique Braun said on an earnings call.

Belt-tightening by Americans was cited as a reason for the weakness in sales of its snacks and beverages in the U.S. On a volume basis, however, North American sales were up 3% in the quarter.

Coca-Cola has not lowered its prices in the U.S. this year, but some retailers, including Walmart, have cut prices to help customers under pressure from persistent inflation. Earlier this month, Walmart rolled back prices on 24-packs of Coca-Cola, dropping them by 33%, from $14.97 to $9.97.

Coca-Cola said its status as the official soft drink of the 2026 FIFA World Cup paid dividends. Its marketing campaign tied to the tournament lifted sales volumes by 5%. Powerade sales volumes were up 8%, the company said.

Global unit case volume grew 5% in the quarter, led by India, China, the United States and Brazil. Every one of its reporting segments saw volume growth in the quarter. Asia-Pacific was the fastest-growing region by volume, up 8%.

Coca-Cola’s sports, coffee and tea segment was a strong contributor in the quarter, with sales volume growth of 6%. Coffee was the segment’s outlier, with a volume decline in the period.

Sparkling soft drinks increased 4% on a volume basis. Coca-Cola’s juice, value-added dairy and plant-based beverage division posted volume growth of 2%.