Summary
The Coca-Cola Company reported robust financial results for the first quarter of 2026, demonstrating strong top-line growth and improved profitability. Net operating revenues increased by 12% year-over-year, reaching $12.47 billion, driven by an 8% increase in concentrate sales volume and a 2% favorable price/mix. The company also benefited from a 3% positive impact from foreign currency fluctuations. This top-line expansion translated to a significant increase in profitability, with operating income rising by 19% to $4.36 billion and consolidated net income growing to $3.97 billion from $3.34 billion in the prior year period. The company's strategic focus on volume growth and effective pricing strategies continues to yield positive results. Despite ongoing investments in marketing and some commodity cost pressures, Coca-Cola maintained a healthy gross profit margin of 63.0% and expanded its consolidated operating margin to 35.0% from 32.9%. The company's diversified global operations and strong brand portfolio are key drivers of this performance, with significant growth observed across multiple operating segments, particularly in North America and Asia Pacific. While the company faces ongoing litigation with the IRS regarding historical tax matters, it has paid the assessed amount and is appealing the decision. The potential financial impact, though significant, is being actively managed, and the company maintains a strong liquidity position. Overall, the first quarter of 2026 presents a picture of a financially healthy company with sustained operational momentum and effective execution of its growth strategies.
Financial Highlights
52 data points| Revenue | $12.47B |
| Cost of Revenue | $4.62B |
| Gross Profit | $7.85B |
| SG&A Expenses | $3.47B |
| Operating Income | $4.36B |
| Interest Expense | $375.00M |
| Net Income | $3.92B |
| EPS (Basic) | $0.91 |
| EPS (Diluted) | $0.91 |
| Shares Outstanding (Basic) | 4.30B |
| Shares Outstanding (Diluted) | 4.31B |
Key Highlights
- 1Net operating revenues increased 12% to $12.47 billion, driven by 8% concentrate sales volume growth and 2% favorable price/mix.
- 2Operating income grew 19% to $4.36 billion, reflecting strong revenue growth and margin expansion.
- 3Consolidated net income rose to $3.92 billion ($0.91 per diluted share) from $3.33 billion ($0.77 per diluted share) in the prior year's comparable period.
- 4Gross profit margin improved to 63.0% from 62.6%, supported by pricing initiatives and favorable currency impacts.
- 5North America and Asia Pacific segments showed strong operating income growth, up 12% and 6% respectively.
- 6The company paid $6.0 billion in back taxes and interest related to an IRS tax dispute but continues to appeal the decision, with an estimated potential future liability of up to $14 billion for subsequent years.
- 7Cash provided by operating activities was $2.02 billion, a significant improvement from a use of $5.20 billion in the prior year period.