GET DAILY SIGNALSCoca-Cola (KO) Delivers Solid Q3 Beat with +7% Revenue Growth and Upgraded 2026 Outlook
Key Takeaways
- Coca-Cola reported third-quarter net revenue of $13.38 billion, up 7% year over year, and comparable earnings per share (EPS) of $0.91, an 11% increase.
- Both revenue and comparable EPS came in ahead of Wall Street expectations, which had called for roughly $12.92 billion in sales and $0.88 in EPS.
- Global unit case volume grew 5%, led by Coca-Cola Zero Sugar, while North America volume was flat as growth in Trademark Coca-Cola offset declines in water, sports, coffee, and tea.
- Management raised its full-year 2026 outlook, including a comparable EPS growth target of at least 11% and a free cash flow target of at least $13 billion.
- Operating margin expanded to 33.4% from 32.0% a year earlier, reflecting the company's pricing power and efficiency gains despite higher input costs.
- Get more information about KO's Major News, Today's Price Move, Price Targets, and Forecasts on additional pages.
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Putting the Results in Context
Coca-Cola's third-quarter report arrives at an interesting time for the beverage sector. Rival PepsiCo had recently trimmed its full-year earnings forecast amid softer U.S. demand, so these numbers provide a useful benchmark for how a leading consumer staples name is navigating volume and pricing dynamics in a mixed economic environment. KO entered the quarter with solid momentum after beating profit estimates in several prior periods and lifting guidance twice already this year. The question was whether that pattern would hold, especially with tougher year-over-year comparisons ahead and renewed attention on North American trends. The results give a clear picture of consumer resilience, pricing effectiveness, and the ability to translate volume gains into margin improvement. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The Quarter's Reported Figures
Coca-Cola posted third-quarter net revenue of $13.38 billion, a 7% rise from $12.46 billion a year earlier and above the consensus forecast of roughly $12.92 billion. Comparable EPS (non-GAAP) climbed 11% to $0.91, topping the $0.88 expected by Wall Street. Reported (GAAP) net income rose to $4.01 billion, or $0.93 per share, from $3.70 billion, or $0.86 per share, in the prior-year quarter.
Organic revenue, excluding currency and structural effects, advanced 7%, driven by a 7% increase in concentrate sales and a 1% improvement in price/mix. Global unit case volume expanded 5%, with notable contributions from India, China, Mexico, and Brazil, while Coca-Cola Zero Sugar volume surged 16%. Operating income grew 12% to $4.47 billion, and the operating margin widened to 33.4% from 32.0%. North America volume held flat, with Trademark Coca-Cola growth offset by softness in water, sports, coffee, and tea categories.
Market Reaction and Sentiment
Shares of KO have risen roughly 32% year to date in 2026, ahead of the broader market and setting a higher bar for the report. After the release, the stock showed a mixed initial reaction, trading modestly lower in premarket despite the beats on both lines and the improved full-year outlook. This measured response suggests much of the positive momentum had already been factored in, with investors balancing the flat North American volume and ongoing cost pressures against stronger international performance. Options markets had priced in a move of around 3% surrounding the event, indicating a cautious stance. The raised guidance and margin expansion were received positively, though softness in the largest market limited immediate enthusiasm.
Forward Outlook and Items to Monitor
Management lifted its full-year 2026 guidance on several fronts. The company now projects organic revenue growth of at least 5% and comparable EPS growth of at least 11%, compared with the previous range of 9% to 10%. It also raised its free cash flow target to at least $13 billion from about $12.4 billion and its cash-from-operations outlook to at least $15.2 billion.
Going forward, attention will likely focus on whether North American volume can return to positive territory, as the region posted flat results amid declines in several categories. Input-cost trends and currency movements remain relevant, given management's comments on higher aluminum and fuel expenses affecting the bottling network. Another development is the recently announced deal to supply beverages to KFC restaurants in the U.S., with rollout expected to begin in early 2027. While positioned more as a brand opportunity than a major revenue contributor, it could aid share gains over time. Management also highlighted tougher year-over-year comparisons and fewer selling days in the fourth quarter, which may influence the pace of growth through year-end.
Using Tickeron’s AI Screener for Portfolio Insights
In my own process, I often turn to Tickeron’s AI Screener when evaluating names like KO alongside peers. The tool lets me apply filters for fundamentals, technical patterns, and sector trends to quickly surface comparable ideas or confirm where a stock stands relative to the broader group. It has become a practical part of reviewing earnings beats and guidance updates without needing to manually comb through dozens of screens.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
KO's RSI Oscillator recovers from overbought zone
The 10-day RSI Indicator for KO moved out of overbought territory on October 23, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 instances where the indicator moved out of the overbought zone. In 12 of the 41 cases the stock moved lower in the days that followed. This puts the odds of a move down at 29%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 28%.
KO broke above its upper Bollinger Band on October 16, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for KO entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 09, 2026. You may want to consider a long position or call options on KO as a result. In 34 of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 44%.
The Moving Average Convergence Divergence (MACD) for KO just turned positive on October 09, 2026. Looking at past instances where KO's MACD turned positive, the stock continued to rise in 26 of 48 cases over the following month. The odds of a continued upward trend are 54%.
KO moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for KO crossed bullishly above the 50-day moving average on October 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 60%.
Following a +2.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where KO advanced for three days, in 143 of 336 cases, the price rose further within the following month. The odds of a continued upward trend are 43%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 3 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 18 (best 1 - 100 worst), indicating outstanding price growth. KO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 21 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 24 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.033) is normal, around the industry mean (-4.622). P/E Ratio (27.838) is within average values for comparable stocks, (24.844). Projected Growth (PEG Ratio) (3.960) is also within normal values, averaging (3.732). Dividend Yield (0.023) settles around the average of (0.040) among similar stocks. KO's P/S Ratio (7.559) is slightly higher than the industry average of (2.785).
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General Information
a manufacturer of non-alcoholic beverages
Industry BeveragesNonAlcoholic
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