Coca-Cola raised its annual revenue and profit forecasts on Tuesday.
The company reported stronger-than-expected second-quarter earnings.
Demand for its Zero Sugar beverages, Fairlife milk and premium products remained strong.
This came despite an uncertain consumer spending environment.
Shares of the beverage giant rose nearly 4% in premarket trading after the company posted quarterly results that exceeded Wall Street expectations and lifted its outlook for the rest of the year.
Comparable revenue increased about 6% year over year to $13.37 billion, ahead of analysts’ estimates of $13.16 billion compiled by LSEG.
Adjusted earnings came in at 97 cents per share, beating expectations of 93 cents, while reported revenue stood at $13.38 billion against forecasts of $13.16 billion.
Reflecting the stronger performance, Coca-Cola now expects comparable earnings per share to grow between 9% and 10% this year, compared with its earlier forecast of 8% to 9%.
The company also raised its 2026 organic revenue growth outlook to about 5%, up from its previous guidance of 4% to 5%.
Zero Sugar and World Cup campaign boost demand
Coca-Cola said its flagship beverages continued to benefit from strong consumer demand, with Zero Sugar products remaining one of the fastest-growing parts of its portfolio.
The company’s FIFA World Cup 2026 campaign also contributed to higher consumption, supporting 5% volume growth for Trademark Coca-Cola and 8% growth for Powerade during the quarter.
Coca-Cola Zero Sugar posted volume growth of 16%, driven by gains across all geographic operating segments.
The company said redesigned packaging for the product had resonated well with consumers in Europe and would now be expanded across Asia Pacific and Latin America.
Overall, sparkling soft drink volumes increased 4%, with Trademark Coca-Cola growing 5% and Diet Coke/Coca-Cola Light rising 7%, supported by demand in North America and Asia Pacific.
Sparkling flavour beverages also recorded 4% growth, primarily driven by Asia Pacific.
Innovation supports global volume growth
The company said innovation remained a key contributor to growth across international markets.
In China, Coca-Cola introduced a locally adapted version of Sprite+Tea with a lemon-forward flavour profile tailored to Chinese consumer preferences, helping support Sprite’s growth during the quarter.
The company is also expanding its portfolio of functional beverages, including BODYARMOR FIT, a sparkling sports drink containing zero sugar, electrolytes and caffeine designed to support metabolism.
Management said innovation across brands contributed to overall volume growth of 5% during the quarter by improving speed to market and expanding successful products across multiple regions.
Total unit case volume rose 5%, led by India, China, the United States and Brazil.
Beyond soft drinks, juice, value-added dairy and plant-based beverages recorded 2% growth, driven by Asia Pacific and North America.
Overall unit case volume increased 3%, supported mainly by Trademark Coca-Cola as well as dairy and plant-based beverages.
Fairlife recovers after ransomware attack
The company also provided an update on Fairlife after disclosing a ransomware attack targeting the billion-dollar dairy brand on July 17.
Production was temporarily suspended following the cyberattack, but Coca-Cola said on Monday that the majority of Fairlife operations had resumed.
Management added that the disruption is not expected to have a material impact on the company’s financial condition or overall operations.
Fairlife has become one of Coca-Cola’s fastest-growing businesses in recent years, driven by strong demand for high-protein milk products in the United States.
Premium demand continues to outpace rivals
Despite ongoing economic uncertainty, Coca-Cola said consumer demand has remained resilient, particularly among higher-income shoppers willing to spend more on premium beverages.
The performance contrasts with rival PepsiCo, which reported earlier this month that North American beverage volumes declined 4% during the second quarter.
Investors welcomed Coca-Cola’s stronger outlook, with the stock extending a rally that has already seen shares gain more than 21% this year, comfortably outperforming the broader S&P 500 index.
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