The Coca-Cola Company's investment thesis centers on its demonstrated pricing power and operational leverage, evidenced by gross margin expansion to 62.9% and operating margin of 34.9% in Q2 2026, which have driven EPS growth of 17% year-over-year. The company...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 6.7% in Q2 2026, with gross margin expanding to 62.9% and operating margin surging to 34.9%, reflecting strong pricing power and operating leverage despite volume stagnation.
Coca-Cola reported 10% organic sales growth in Q1 2026, with a target of 4-5% organic revenue growth for the full year.
Coca-Cola's strong global brand and expansion in emerging markets like India and Africa are expected to drive future volume recovery.
With a low beta of 0.36 and 63 consecutive years of dividend increases, Coca-Cola is appealing to stability-seeking investors.
Continued price increases may reduce sales volume as consumers trade down or cut back on consumption.
The rise of weight-loss drugs and sugar content regulations could negatively impact beverage consumption.
Coca-Cola faces risks from inflation, trade-down behaviors, and currency headwinds, particularly noted in regions like Asia Pacific.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 28, 2026 | $0.97+5.4% vs $0.92 | $13.4B+1.5% vs $13.2B |
Q2 2026 Apr 28, 2026 | $0.86+5.9% vs $0.81 | $12.5B+1.9% vs $12.2B |
Q1 2026 Feb 10, 2026 | $0.58+2.7% vs $0.56 | $11.8B-2.1% vs $12.0B |
Q4 2025 Oct 21, 2025 | $0.82+5.3% vs $0.78 | $12.5B+0.4% vs $12.4B |
The State Street Consumer Staples Select Sector SPDR ETF (XLP) has climbed 6.6% so far in 2026, according to State Street data as of September 21. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) has fallen more than 7% over the same stretch, a 13.
Warren Buffett has held Coca-Cola since 1988, and after a 35% run over the past year, most investors assume the opportunity has passed. Our model disagrees, and the reason comes down to one number buried inside the latest earnings report.
Coca-Cola isn't planning to spend an additional $10 billion through 2030. It's primarily reiterating its existing systemwide spending plans.
With the third quarter closing out, income investors have a narrow window to lock in three cash-generative blue chips before Q3 earnings reset expectations. The shared hook: recession-resilient franchises, multi-decade dividend histories, and reaffirmed or raised 2026 guidance.
Benchmark KO against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for The Coca-Cola Company (KO)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $88.61 | $381.24B | 29.15 | 1.87% | 27.34% | 43.22% | 2.3% | |
| $131.19 | $179.21B | 21.87 | 2.25% | 10.82% | 49.99% | — | |
| $44.27 | $86.59B | 45.64 | 10.7% | 23.08% | 24.96% | — | |
| $29.39 | $7.51B | 117.54 | 85.54% | 3.62% | 4.36% | — | |
| $31.12 | $2.91B | 15.88 | -1.73% | 14.81% | 32.6% | — | |
| $31.51 | $42.87B | 20.59 | 8.16% | 7.1% | 5.22% | — |
The Coca-Cola Company (KO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
The Coca-Cola Company (KO) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 28, 2026·SEC
Jul 16, 2026·SEC
Jun 25, 2026·SEC
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The Coca-Cola Company (KO) stock FAQ — growth, dividends, profitability & financials explained
The Coca-Cola Company (KO) reported $50.13B in revenue for fiscal year 2025. This represents a 168% increase from $18.67B in 1996.
The Coca-Cola Company (KO) grew revenue by 1.9% over the past year. Growth has been modest.
Yes, The Coca-Cola Company (KO) is profitable, generating $14.32B in net income for fiscal year 2025 (27.3% net margin).
Yes, The Coca-Cola Company (KO) pays a dividend with a yield of 2.30%. This makes it attractive for income-focused investors.
The Coca-Cola Company (KO) has a return on equity (ROE) of 43.2%. This is excellent, indicating efficient use of shareholder capital.
The Coca-Cola Company (KO) generated $14.30B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
