Coca-Cola beats estimates on World Cup momentum, raises full-year outlook
The beverage giant reported a 7% rise in net revenue to $13.4 billion and an 11% increase in comparable earnings per share, surpassing Wall Street forecasts as in-stadium campaigns bolstered volume.
Coca-Cola delivered a robust second-quarter performance, reporting net revenue of $13.4 billion, a 7% increase year-on-year, and comparable earnings per share of 97 cents, an 11% rise that exceeded Wall Street estimates by five cents. The results were underpinned by a 5% growth in global unit case volume, with Zero Sugar volumes surging 16% and Powerade volumes jumping 8%. Management attributed part of this acceleration to in-stadium marketing during the World Cup, which concluded on 19 July, noting that the campaign generated tens of millions of new first-party customer data records.
In response to the strong quarter, the company raised its full-year organic revenue growth outlook to approximately 5%, up from a prior range of 4% to 5%, and lifted comparable EPS growth guidance to 9% to 10%, from 8% to 9%. This marks the second upward revision in a year for the dividend-focused consumer staple, a shift that has prompted Wall Street analysts to increase price targets, with the average 12-month target now sitting at $94.70 across 24 analysts holding a consensus Buy rating.
Despite the positive momentum, operational headwinds persisted in specific markets. Coca-Cola lost value share in India's ready-to-drink beverage market as aluminum can shortages limited the availability of mid-tier packaging just as demand recovered. Additionally, rising input costs for aluminium and PET plastic are pressuring margins company-wide, with inflation on these materials exceeding the company's 2026 budgets.
The board also approved its 64th consecutive annual dividend increase, lifting the quarterly payment by 4% to 53 cents per share. CFO John Murphy stated the company was "not unhappy" with how hydration breaks benefited Powerade placement during the tournament, though analysts caution that the real test will be whether the tournament-driven demand translates into sustained consumer behaviour once the marketing spike fades.
Coca-Cola shares closed at $87.05 on Friday, 7 August, up 0.23% for the day and roughly 26% for the year, trading within $4 of its 52-week high of $90.92. The stock has consistently outperformed rivals like PepsiCo, but investors will be watching the third-quarter report this fall to determine if the growth trajectory can be maintained without the tailwinds of the World Cup.
