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Coca-Cola reported better-than-expected quarterly profits and revenue, but the drinks giant said demand for its drinks was still weak.
Here’s what the company reported compared to what Wall Street analysts polled by LSEG expected:
- Earnings per share: 82 cents adjusted versus 78 cents expected
- Income: $12.41 billion adjusted versus $12.39 billion expected
Coke reported third-quarter net income attributable to shareholders of $3.7 billion, or 86 cents per share, compared with $2.85 billion, or 66 cents per share, a year earlier.
Excluding restructuring charges and other items, Coke earned 82 cents per share.
Net sales rose 5% to $12.46 billion. Coke’s organic revenue, excluding acquisitions, divestitures and currencies, increased 6%.
Shares rose nearly 3% in premarket trading.
The company’s unit case volume increased 1%, a reversal from last quarter’s decline. The measure excludes the impact of prices and foreign currencies to reflect demand.
But volume in Latin America and North America, two key markets, remained stable for the quarter. Coke executives have previously said that low-income consumers in the United States are buying fewer of its products, even though the company tries to target them with affordable options.
Globally, Coke recorded the highest volume growth in its water, sports, coffee and tea segments. Its bottled waters and sports drinks both saw volume growth of 3%, while coffee and tea saw volume growth of 2%. The company’s sparkling soft drinks volume remained flat for the quarter, while its juice, value-added dairy and plant-based beverages segment reported a 3% decline.
The company reiterated its guidance for the full year. Coke expects comparable earnings per share to increase 3% and organic revenue to increase 5% to 6%.
Looking ahead to 2026, Coke expects a slight tailwind to both its revenue and comparable earnings due to currency fluctuations. The company will provide full guidance for the coming year in its fourth-quarter earnings report.
