Coca-Cola (NYSE:KO) delivered third-quarter results that came in slightly ahead of Wall Street expectations, buoyed by steady demand and pricing power, even as the company described the broader operating landscape as “challenging.”
The beverage maker has been contending with softening volumes in key markets, including the U.S. and Latin America, as cost-conscious consumers cut back on higher-priced sodas. Additionally, a push for healthier beverages led by U.S. Health Secretary Robert F. Kennedy Jr. has prompted Coca-Cola to commit to launching a Coke product made with natural cane sugar in the U.S. instead of corn syrup — a shift analysts say could increase costs.
Despite these headwinds, overall demand has remained resilient in the U.S. and select international markets. Price increases on products like Topo Chico sparkling water and Fairlife milk supported performance, while unit case volumes grew 1%, surpassing expectations. A dip in nutrition, juice, dairy, and plant-based drink volumes was balanced by gains in water, sports, coffee, and tea beverages. Sparkling soft drink volumes were stable year-over-year.
Net revenue rose 5% to $12.45 billion, just ahead of the $12.48 billion estimate from Bloomberg consensus. Comparable earnings per share came in at $0.82, topping analyst expectations of $0.78 for the quarter ended September 26.
Coca-Cola reaffirmed its full-year outlook, maintaining guidance for comparable earnings per share growth of roughly 3% and organic revenue expansion of 5% to 6%.
The strong results followed similar momentum from rival PepsiCo (NASDAQ:PEP) earlier this month, as both beverage giants benefit from solid international demand and ongoing shifts in consumer preferences toward healthier options.
Coca-Cola shares climbed more than 2% in premarket trading on Tuesday following the earnings release.