Coca-Cola raises 2026 profit forecast on strong international soda demand

NEW YORK: Coca-Cola on Tuesday raised its annual profit forecast, citing demand for soft drinks in markets such as India and Brazil. Higher sales of pricier drinks such as fairlife milk helped offset rising input costs in North America.

The company now expects comparable currency-neutral earnings per share to grow at least 9 per cent in 2026. Its earlier forecast was growth of 7 per cent to 8 per cent.

It also targets annual organic revenue growth of at least 5 per cent. It had previously expected roughly 5 per cent.

Global unit case volumes rose about 5 per cent in the third quarter, the company said. Growth in India, China, Mexico and Brazil drove the rise. North American volumes were flat, although its trademark sodas grew there.

Revenue for the quarter ended 2 October reached $13.38 billion, according to LSEG data. Analysts had estimated $12.92 billion. Adjusted earnings were 91 cents per share, against an estimate of 88 cents.

Third-quarter revenue rose 7.4 per cent. This helped lift the operating margin to 33.4 per cent.

Coca-Cola has sought to win over more selective consumers in the United States with smaller, cheaper packs. It has also introduced pricier offerings, including Coca-Cola Cherry Float and new Topo Chico and fairlife varieties.

Like other consumer goods firms, the company faces higher packaging costs as the US war in Iran pushes up commodity prices. In July, it said aluminium and PET costs had risen more than expected this year.

Its results contrast with those of rival PepsiCo, which has struggled with weak snack demand in the United States.

Jefferies analyst Kaumil Gajrawala said: “The gap between Coke and peers is widening. As the market debates price increases, those delivering volume growth should outperform.”

RBC Capital Markets analyst Nik Modi said some investors may have wanted a larger raise in targets. He said that prudence was understandable given the macroeconomic environment.

Coca-Cola shares were largely unchanged in premarket trading, according to Reuters. The stock has risen about 33 per cent in 2026. It is on track for a third straight year of gains, despite weaker consumer spending and market volatility linked to the Iran war.