Coca-Cola Raises Full-Year Outlook After Q3 Revenue Tops Estimates on Zero-Sugar Demand

Coca-Cola (KO) raised its full-year revenue and profit guidance on Tuesday after third-quarter results beat analyst estimates, driven by strong overseas soda demand and a surge in zero-sugar product sales. Revenue for the quarter ended October 2 rose 7.4% year over year to $13.38 billion, above the $12.92 billion analysts expected. Adjusted earnings per share came in at $0.91, beating the $0.88 estimate. Organic growth reached 7%, also ahead of consensus. The company lifted its 2026 organic revenue growth forecast to at least 5% from about 5%, and now expects adjusted EPS growth of at least 11%, up from 9% to 10%. It marked the second guidance increase since July. Global unit case volume grew 5%, led by demand in India, China, Mexico and Brazil. Sparkling drinks volume rose 5%, with Zero Sugar Coca-Cola up 16% and Diet Coke up 6%. North American volume was flat, missing estimates of 2.3% growth, as declines in water, sports drinks, coffee and tea offset brand gains. Adjusted operating margin widened to 32.9% from 31.9% a year earlier. The stock has risen nearly 33% this year through Monday's close, outpacing the S&P 500's roughly 12% gain.