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Coca-Cola raises guidance, buoyed by World Cup sales lift
Beverage giant continues to gain traction among shoppers with a widening portfolio of beverages
Key Takeaways:
- Coca-Cola raised its 2026 outlook after strong quarterly results, forecasting 5% organic sales growth and up to 8% earnings-per-share growth.
- Demand was supported by higher pricing, premium product choices and FIFA World Cup-related marketing, while North American organic sales rose 7%.
- The company said most Fairlife production has resumed after a cyberattack and expects no material impact as CEO Henrique Braun leads the business.
Coca-Cola Co. raised its full-year outlook, bolstered by demand last quarter while it served as a major sponsor of the FIFA World Cup.
Atlanta-based Coca-Cola now sees organic sales growth of 5%, compared with a previous forecast of 4% to 5%. It also raised its forecast for earnings-per-share growth to as much as 8%, up 1 percentage point.
The more optimistic view shows that Coca-Cola continues to gain traction among shoppers with a widening portfolio of beverages, including sugar-free soda, sports drinks and water, at a time when the industry has seen consumers turn away from traditional full-calorie soft drinks. It also helps ease the company’s transition to CEO Henrique Braun, who took over the role from James Quincey earlier this year.
Shares of Coca-Cola rose 2.2% at 9:34 a.m. in New York on July 28. The stock had gained 20% this year through the July 27 close, compared with a roughly 8% increase in the S&P 500 Index.
Despite signs of weakened consumer budgets and the company’s reliance on price increases to juice sales, the drinks maker’s dominant market share underpins management’s confidence hitting its updated targets, Bloomberg Intelligence Kenneth Shea wrote in a note. Still, achieving its goals “may require new CEO Braun to step up the pace of product innovation and marketing,” Shea wrote.
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Braun
Last quarter, Coca-Cola sales were boosted 2% by pricing and customers choosing more expensive options, on top of the 6% jump last year.
The company also topped earnings and sales expectations for last quarter, which included about half the five-week World Cup tournament.
In North America, where the World Cup was hosted, organic sales jumped 7%, more than even the most optimistic analyst estimate compiled by Bloomberg. North America accounted for about 40% of total sales last quarter, the most of any region.
The company’s media blitz to accompany the soccer showcase generated 9 billion views for its brands on social media, supported by more than 2,500 content creators, according to the statement.
Buoyed by better a sales performance, comparable earnings per share jumped 11%, compared with a 4% increase last year. It was the second straight quarter of double-digit profit growth, a feat the company hasn’t accomplished since 2021.
Earlier this month, Coca-Cola suspended U.S. operations of its Fairlife milk after a cyberattack. On July 27, the company said a majority of the division’s production had resumed. The company said it expected no material impact during a call with analysts.
Several Coca-Cola distributors rank on the Transport Topics Top 100 list of the largest private carriers in North America.
