GET DAILY SIGNALSVita Coco (COCO) Reports Strong Q3 2026 Results and Raises Full-Year Guidance
Key Takeaways
- Net sales rose 34% year over year to $243.8 million in the third quarter of 2026, with organic growth of roughly 18%.
- Diluted earnings per share (EPS) reached $0.58, up from $0.40 in the same period a year earlier.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed to about $53.2 million from $32.4 million.
- The July 2026 acquisition of Copra, a super-premium Thai coconut water producer, contributed approximately $29 million in Americas sales.
- Management raised full-year 2026 guidance again, now targeting net sales of $790 million to $805 million and adjusted EBITDA of $154 million to $161 million.
- The company ended the quarter debt-free with about $152 million in cash and cash equivalents.
Earnings Context and Why It Matters
Vita Coco (COCO) stands as the leading coconut water brand in the United States, and its quarterly results offer a useful window into consumer demand for functional hydration beverages. Ahead of the report, the focus was on whether strong retail trends would convert into shipments, how the Copra acquisition would integrate, and whether higher ocean freight costs might pressure margins. The third quarter comes at an important time as the company balances category growth against rising input costs and plans for international expansion. With guidance lifted once more, the results provide a clearer picture of demand durability and the ability to maintain profitability.
Reported Results
For the three months ended September 30, 2026, Vita Coco (COCO) posted net sales of $243.8 million, up 34% from $182.3 million a year earlier. Organic net sales grew about 18%, Vita Coco Coconut Water net sales rose 15%, and private label net sales jumped 152% thanks to the Copra contribution. Americas segment net sales increased 31% to $199 million.
Gross profit came in at roughly $92.7 million for a gross margin of 38.0%, compared with 37.7% in the prior-year period. SG&A expenses rose to about $47.2 million, partly due to acquisition-related costs and amortization. Net income reached $35.0 million versus $24.0 million, and diluted EPS was $0.58 compared with $0.40. Adjusted EBITDA increased to approximately $53.2 million from $32.4 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Through the first nine months of 2026, net sales grew about 33% to $639.7 million, diluted EPS rose to $1.89 from $1.10, and adjusted EBITDA reached roughly $159 million.
Management raised its fiscal 2026 outlook, now expecting net sales of $790 million to $805 million, gross margin near 40%, and adjusted EBITDA of $154 million to $161 million, reflecting momentum in the core business and early Copra performance.
Market Reaction and Investor Sentiment
Investor attention after the release centered on the size of the guidance increase and the margin outlook. The solid organic growth and private label recovery signaled resilient category demand, while Copra added an extra layer of growth. Management noted that elevated ocean freight costs and other inflationary pressures will affect fourth-quarter gross margins, which may moderate near-term optimism. The balance between revenue acceleration and cost pressures will influence how investors view the sustainability of momentum going forward.
Forward Outlook and Key Factors to Monitor
Looking ahead, the focus will be on how Vita Coco (COCO) handles rising input costs. Plans call for pricing adjustments in early 2027 to address what management sees as structural cost increases, while the current ocean freight spike is viewed as likely temporary. The speed of freight rate normalization will be a key variable for margins.
Copra integration remains an important storyline. The company aims to preserve and expand Copra’s premium Nam Hom coconut water operations, with capacity additions expected to ease utilization pressures. The longer-term target is to return to the preferred 85% capacity utilization model by 2028, depending on growth trends.
International expansion in the UK, Germany, and broader Europe continues to develop, and promotional and marketing activity around the hydration message could affect volume growth and the branded portfolio’s position versus private label options. From what I see, monitoring these elements closely will help assess the durability of recent performance.
Using Tickeron’s AI Tools in My Research
I often turn to Tickeron’s AI Screener when evaluating consumer staples names like this one. It lets me apply technical patterns, fundamentals, and performance filters to quickly surface comparable opportunities and confirm how the latest results stack up across the sector. The platform has become a regular part of my workflow for identifying ideas and tracking trends without spending hours on manual 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.
Momentum Indicator for COCO turns positive, indicating new upward trend
COCO saw its Momentum Indicator move above the 0 level on October 12, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned positive. In 72 of the 81 cases, the stock moved higher in the following days. The odds of a move higher are at 89%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for COCO just turned positive on October 09, 2026. Looking at past instances where COCO's MACD turned positive, the stock continued to rise in 43 of 51 cases over the following month. The odds of a continued upward trend are 84%.
COCO moved above its 50-day moving average on October 19, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for COCO crossed bullishly above the 50-day moving average on October 21, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 14 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 86%.
Following a +7.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where COCO advanced for three days, in 254 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
COCO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day RSI Indicator for COCO moved out of overbought territory on October 22, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In 35 of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at 78%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for COCO moved below the 200-day moving average on September 30, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COCO 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 69%.
The Aroon Indicator for COCO entered a downward trend on September 21, 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.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 32 (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 Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. COCO’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 64 (best 1 - 100 worst), pointing to average 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 Valuation Rating of 84 (best 1 - 100 worst) indicates that the company is slightly 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 (8.516) is normal, around the industry mean (-4.842). P/E Ratio (30.729) is within average values for comparable stocks, (25.520). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.732). Dividend Yield (0.000) settles around the average of (0.038) among similar stocks. P/S Ratio (4.808) is also within normal values, averaging (2.785).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. COCO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock worse than average.
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