Coca-Cola tops earnings estimates, hikes full-year outlook as demand for drinks climbs
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- Coca-Cola posted Q2 adjusted EPS of 97 cents (vs 93 cents expected) and revenue of $13.38 billion (vs $13.16 billion expected), sending shares up more than 3% premarket
- Coca-Cola raised its full-year comparable EPS growth forecast to 9–10% (from 8–9%) and lifted organic revenue growth to roughly 5% (from a prior 4–5% range)
- Coca-Cola's net income climbed to $4.43 billion ($1.03/share) from $3.81 billion a year earlier, with net sales up 7% and organic revenue up 6%
- Coca-Cola's global unit case volume grew 5%, with every reporting segment expanding — including 3% growth in North America — even as the US national average gas price hit a four-year high of $4.56/gallon in late May
- The World Cup campaign powered outsized gains: Coca-Cola Zero Sugar volume jumped 16%, Diet Coke 7%, namesake soda 5%, and Powerade 8%
- CEO Henrique Braun called the consumer environment "dynamic," a notably different read from rival PepsiCo, which reported weakened US snack and drink sales tied to tighter shopper budgets
Why it matters: Coca-Cola posted volume growth in every segment — including a 3% North America gain — while PepsiCo reported weakening US demand, suggesting Coke's pricing power and World Cup marketing execution are insulating it from the consumer-spending squeeze that elevated gas prices have put on rivals.
