Coca-Cola boosts earnings outlook despite tepid North American demand

Coca-Cola has raised its annual earnings forecast again, supported by resilient global demand and strong sales of several beverage brands, even as cost-conscious North American consumers limit spending.

The beverage giant reported yesterday that its global drink sales volume rose 5% in the third quarter. It also raised its earnings forecast for the year.

Coca-Cola now expects comparable earnings per share to rise by at least 11% in 2026, up from its previous estimate of 9% to 10%. It also slightly improved its organic revenue outlook, reflecting confidence that it can maintain growth despite an uncertain consumer environment.

Revenue rose 7% to $13.4 billion, while net income increased to $4.01 billion from $3.7 billion a year earlier.

Rising demand in India, China, Mexico and Brazil supported growth, while North American consumption remained subdued despite growing sales of premium products.

Demand for Coke Zero Sugar and Diet Coke climbed 16% and 6%, respectively. Bottled water sales also increased, while sports drinks declined.

Weaker sales of water, coffee, juice and sports drinks counterbalanced growth in US sales of regular Coke and Fairlife milk.

Sales at restaurants, cinemas and other venues also remain under pressure.

Chief Executive Henrique Braun credited the company’s performance to disciplined execution in an uneven market. Chief Financial Officer John Murphy expects consumer spending patterns to remain largely unchanged in 2027.

Coca-Cola shares slipped less than 1% in morning trading as investors weighed the cautious consumer-demand outlook.

But it has outperformed PepsiCo this year, with its shares rising 30% while its rival’s have fallen 7%. The company also recently landed a beverage deal with KFC, replacing PepsiCo.