Coca-Cola Company (NYSE:KO) traded steadily on Wednesday as investors assessed its latest business updates and global performance outlook.
- KO is performing well relative to peers. See the full story here
The food and beverage giant reported third-quarter adjusted earnings per share of 82 cents, beating the analyst consensus estimate of 78 cents.
Coca‑Cola Zero Sugar grew 14%, driven by growth across all geographic operating segments. Diet Coke/Coca‑Cola Light grew 2%, primarily driven by growth in North America and Asia Pacific.
Also Read: Why Coca-Cola Just Sold Most Of Its Africa Bottling Empire
Analyst Take
Bank of America Securities analyst Peter T. Galbo reiterated the Buy rating on Coca-Cola, raising the price forecast from $78 to $80.
Galbo calls Coca-Cola “best in class” with a clear strategy.
He says the portfolio balances investment markets with profit engines.
According to the analyst, Coca-Cola ended the third quarter with a strong September. July and August were slow, but two-year volume trends improved each month.
He stated that organic sales increased 6% year-over-year, with unit cases up 1%. Price and mix added 6 points, comprising 4 points of pricing and 2 points of mix.
He said consumer trends in developed markets vary by income level and channel. The analyst added that emerging markets, including Mexico and Southeast Asia, face macro pressures and slower recoveries.
Galbo said Coca-Cola’s resilience is expected to continue, with mid-single-digit organic growth anticipated through 2026.
He remarked that large-cap peers may struggle to match that pace.
Coca-Cola’s Early 2026 Setup
Galbo sees forex as a slight tailwind, under one point, for sales and EPS. Price and mix should keep normalizing as volumes gradually firm. Together, these trends support an organic growth rate of 4% to 6%.
The calendar quirks also loom: six extra selling days in the first quarter and six fewer in the fourth. The analyst expects that timing to sway quarterly cadence and margins.
The refranchising in Africa is expected to be completed by the end of the year, which will help improve the profit margins structurally by 2027.
The analyst also stated that the IRS dispute outlook improved, helped by a favorable 3M ruling.
On the flipside, the analyst flags risks that could weigh on the outlook. Emerging-market volatility remains a meaningful swing factor.
Currency translation and commodity costs could also pressure performance.
KO Price Action: Coca-Cola shares were down 0.27% at $71.02 at the time of publication on Wednesday, according to Benzinga Pro data.
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