The Coca-Cola Company

Second-quarter organic revenue grew 6% and unit case volume grew 5%; price/mix grew 2%; comparable gross margin increased approximately 120 basis points; comparable operating margin increased approximately 90 basis points; and comparable EPS was $0.97, up 11%, including a 2-point benefit from currency tailwinds. Free cash flow was approximately $6.9 billion, and net debt leverage was 1.4x EBITDA. For 2026, management now expects organic revenue growth of approximately 5%, comparable currency-neutral EPS growth excluding acquisitions and divestitures of 7% to 8%, and all-in comparable EPS growth of 9% to 10% versus $3 in 2025. They also expect divestitures to be a 2% to 3% headwind to comparable net revenues and about a 1% headwind to comparable EPS, with about a 1-point currency tailwind to net revenues and a 3-point tailwind to EPS for the full year.

Henrique Braun said the company had a strong first half and broad-based momentum across regions, with growth driven by a more consumer-centric approach, revenue growth management, and execution around major activations like the FIFA World Cup. He emphasized that Coca-Cola is adapting to an uneven global consumer environment by balancing affordability and premiumization, while staying close to consumers and using digital and localized marketing more effectively. His tone was confident and upbeat, repeatedly pointing to the system’s strength and saying the company is well positioned to deliver on raised 2026 guidance.

John Murphy highlighted the financial quality of the quarter: 6% organic revenue growth, 5% volume growth, 120 basis points of gross margin expansion, 90 basis points of operating margin expansion, and $0.97 comparable EPS, up 11%. He said free cash flow was about $6.9 billion and leverage was 1.4x EBITDA, giving the company flexibility to reinvest and return capital. On guidance, he said the company now expects roughly 5% organic revenue growth, 7% to 8% comparable currency-neutral EPS growth excluding M&A, and 9% to 10% comparable EPS growth overall, with currency and divestitures both now explicitly built into the outlook.

Analysts focused on the sustainability of growth given easy comparisons, the consumer environment, fairlife supply and Webster ramp-up, APAC investment and pricing mix, the IRS tax case, FIFA World Cup benefits, Marriott wins, and margin durability. Management said the second-half outlook remains supported by momentum, though it will face tougher comparisons and six fewer days in the fourth quarter. On fairlife, they said retail availability was largely unaffected, production has resumed across most facilities, and Webster capacity is still expected to ramp through the rest of the year with no material second-half impact expected from the incident.