$KO · COCA COLA CO
Coca-Cola filed its 10-Q for the quarter ended October 2, 2026, reporting Q3 net operating revenues of $13.38B (+7.4% YoY), operating income of $4.465B (+12% YoY), and diluted EPS of $0.93 versus $0.86 a year ago. Concentrate sales volume grew 7%, and consolidated operating margin expanded to 33.4% from 32.0%. Nine-month operating cash flow rebounded dramatically to $12.47B from $3.65B in the prior-year period.
- Q3 net operating revenues rose 7.4% YoY to $13.38B, driven by 7% concentrate sales volume growth and favorable price/mix.
- Operating income jumped 12% YoY to $4.465B; consolidated operating margin expanded 140 bps to 33.4%.
- Diluted EPS of $0.93 beat the prior-year quarter's $0.86 by 8.1%.
- Nine-month operating cash flow surged to $12.47B from $3.65B a year ago, reflecting a $7.54B swing in working capital.
- The effective tax rate rose to 16.1% in Q3 from 12.0% a year ago, compressing net income growth relative to pre-tax.
KO shares are up 0.65% in the regular session to $91.77, a muted reaction consistent with a $395B mega-cap delivering in-line broad-based strength. The +0.09% move since filing suggests the results were largely priced in.
Coca-Cola's 7% volume growth plus 140 bps of margin expansion in a $395B mega-cap consumer staple signals durable pricing power and operating leverage at scale.
Coca-Cola's 7% concentrate volume growth and 140 bps of operating margin expansion reinforce the pricing-power narrative across global consumer staples. The 3% FX tailwind from a weaker USD versus the Mexican peso and Brazilian real mirrors trends seen across multinational peers with heavy LatAm exposure.
The ongoing IRS tax dispute remains a material overhang — the company warns that assumptions used to calculate the estimated aggregate incremental tax and interest liability "could significantly change." Foreign currency translation swung to a $668M headwind in Q3 from a $437M tailwind a year ago, signaling rising FX volatility.