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Coca-Cola
(NYSE:KO)
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Rating:76Outperform
Price Target:
$95.00
▲(15.50% Upside)
Action:Reiterated
Date:07/28/26
KO scores well on financial performance, driven by premium margins and strong cash generation, and is reinforced by a positive earnings call with raised/confirmed outlook. The score is tempered by premium valuation and event-driven operational risk from the fairlife ransomware disruption, while technicals suggest an ongoing uptrend but lack momentum-indicator confirmation.
Positive Factors
High Profitability & Margins
Coca‑Cola’s persistently high gross, operating and net margins reflect durable brand pricing power and low capital intensity from the concentrate model. These margins support sustained earnings resilience across cycles and fund dividends, brand investment, and strategic initiatives over the medium term.
Negative Factors
Elevated Financial Leverage
Although leverage has improved, a materially leveraged balance sheet increases sensitivity to rising rates or weaker cash flow. The company’s strong ROE is partially leverage‑driven, so refinancing or macro stress could constrain capital returns or force slower buyback/dividend pacing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Coca‑Cola’s persistently high gross, operating and net margins reflect durable brand pricing power and low capital intensity from the concentrate model. These margins support sustained earnings resilience across cycles and fund dividends, brand investment, and strategic initiatives over the medium term.
Read all positive factors
Coca-Cola Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units, highlighting which product lines or services are driving sales and where there might be opportunities or challenges.
Analyzes income from different business units, highlighting which product lines or services are driving sales and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyCoca-Cola (KO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$361.71B
Dividend Yield2.36%
Average Volume (3M)18.35M
Price to Earnings (P/E)26.5
Beta (1Y)0.13
Revenue Growth6.74%
EPS Growth27.16%
CountryUS
Employees65,900
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)3.33
Shares Outstanding4,302,482,400
10 Day Avg. Volume16,034,979
30 Day Avg. Volume18,349,004
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)9.35
Price to Sales (P/S)6.27
P/FCF Ratio56.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$95.88Price Target Upside16.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)3.29
Revenue Forecast (FY)$49.43B
Coca-Cola Business Overview & Revenue Model
Company Description
The Coca-Cola Company (KO) is a global beverage company that develops, markets, and sells nonalcoholic beverages, including sparkling soft drinks (e.g., Coca-Cola), flavored sparkling beverages, waters, sports drinks, juices, dairy and plant-based...
How the Company Makes Money
Coca-Cola primarily makes money by selling beverage concentrates and syrups to authorized bottlers and other partners who then manufacture, package, distribute, and sell finished beverages to retailers and foodservice customers. Under this model, ...
Coca-Cola Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: strong organic revenue (6%) and unit case volume (5%) growth, margin expansion, double-digit EPS growth for the quarter, robust free cash flow and a healthy balance sheet that enabled an upgraded/confirmed full-year outlook. Significant commercial wins and global activations (notably the FIFA World Cup), brand momentum (including >20% growth for relaunches like Mr. Pibb and strong fairlife recovery) and sizable first-party data capture reinforce the company’s growth posture. Offsetting these positives are persistent macro and regional headwinds (cautious China, difficult Mexico), investment-related profit pressure in Asia Pacific and EMEA, divestiture-related revenue/EPS headwinds, concentrate shipment timing effects, and an unresolved tax litigation risk. Overall, the highlights outweigh the lowlights, but management acknowledged several execution and macro risks to monitor through the back half of the year.Positive Updates
Strong Top-Line and Volume Growth
Organic revenue grew 6% in the quarter and unit case volume increased 5% (2-year volume growth of 2%), with concentrate sales only 1 point behind unit case sales. Price/mix grew 2% (driven by ~3 points of pricing actions, partially offset by ~1 point of unfavorable mix).
Negative Updates
Uneven Consumer Environment and Cost Pressures
Management described an uneven consumer backdrop: persistent inflationary pressures and constrained lower-income consumers in many markets. They continue to monitor commodity volatility and said the calendar shift (Q4 has 6 fewer days) and cycling tougher comps will affect H2 comparability.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line and Volume Growth
Organic revenue grew 6% in the quarter and unit case volume increased 5% (2-year volume growth of 2%), with concentrate sales only 1 point behind unit case sales. Price/mix grew 2% (driven by ~3 points of pricing actions, partially offset by ~1 point of unfavorable mix).
Read all positive updates
Company Guidance
Management raised its 2026 outlook, saying it now expects to deliver at the high end of prior revenue guidance with organic revenue growth of approximately 5%, comparable currency‑neutral EPS growth excluding acquisitions/divestitures of 7–8%, and an all‑in comparable EPS increase of 9–10% versus $3 in 2025 (implying EPS ≈ $3.27–$3.30). They assume an underlying effective tax rate of 19.9%, expect a ~1‑point currency tailwind to comparable net revenues and ~3‑point tailwind to comparable EPS, and note divestitures (primarily the pending CCBA sale) will be a 2–3% headwind to comparable net revenues and ~1% headwind to comparable EPS; concentrate shipments are expected to lag unit case volume by ~1 point in Q3 and slightly trail for the full year, and Q4 has six fewer days. Management also cited manageable commodity exposure and emphasized strong cash/balance sheet flexibility after Q2 comparable EPS of $0.97 (up 11%), free cash flow of roughly $6.9 billion year‑to‑date, and net debt leverage of 1.4x EBITDA (below the 2.0–2.5x target).Coca-Cola Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
73
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.13B | 47.94B | 47.06B | 45.75B | 43.00B | 38.66B |
| Gross Profit | 31.02B | 29.54B | 28.74B | 27.23B | 25.00B | 23.30B |
| EBITDA | 19.57B | 18.70B | 15.82B | 15.61B | 13.83B | 15.47B |
| Net Income | 14.32B | 13.11B | 10.63B | 10.71B | 9.54B | 9.77B |
Balance Sheet | ||||||
| Total Assets | 107.92B | 104.82B | 100.55B | 97.70B | 92.76B | 94.35B |
| Cash, Cash Equivalents and Short-Term Investments | 16.37B | 13.87B | 14.57B | 13.66B | 11.63B | 12.63B |
| Total Debt | 43.54B | 45.49B | 45.73B | 43.43B | 40.60B | 44.23B |
| Total Liabilities | 69.61B | 70.54B | 74.18B | 70.22B | 66.94B | 69.49B |
| Stockholders Equity | 36.15B | 32.17B | 24.86B | 25.94B | 24.11B | 23.00B |
Cash Flow | ||||||
| Free Cash Flow | 14.30B | 5.30B | 4.74B | 9.75B | 9.53B | 11.26B |
| Operating Cash Flow | 16.34B | 7.41B | 6.80B | 11.60B | 11.02B | 12.63B |
| Investing Cash Flow | 2.65B | -67.00M | 2.52B | -3.35B | -763.00M | -2.77B |
| Financing Cash Flow | -16.07B | -8.14B | -6.91B | -8.31B | -10.25B | -6.79B |
Coca-Cola Technical Analysis
Positive
82.25
Price Trends
81.38
Positive
78.90
Positive
75.00
Positive
Market Momentum
0.32
Positive
51.05
Neutral
22.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KO, the sentiment is Positive. The current price of 82.25 is below the 20-day moving average (MA) of 83.08, above the 50-day MA of 81.38, and above the 200-day MA of 75.00, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 22.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KO.
Coca-Cola Risk Analysis
Coca-Cola disclosed 42 risk factors in its most recent earnings report. Coca-Cola reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Coca-Cola Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $93.23B | 46.99 | 25.46% | ― | 18.06% | 36.22% | |
76 Outperform | $361.71B | 26.51 | 43.62% | 2.53% | 6.74% | 27.16% | |
74 Outperform | $190.80B | 18.70 | 50.36% | 4.21% | 5.62% | 38.93% | |
68 Neutral | $40.98B | 23.02 | 7.25% | 3.10% | 9.19% | 21.61% | |
67 Neutral | $2.93B | 16.60 | 32.19% | ― | -1.73% | -1.71% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $12.40B | 24.94 | 122.90% | 0.54% | 8.81% | 14.00% |
* Consumer Defensive Sector Average
KO
Coca-Cola
89.08
22.22
33.24%
COKE
Coca-Cola Bottling Co Consolidated
192.39
78.46
68.87%
KDP
Keurig Dr Pepper
31.45
-1.27
-3.88%
MNST
Monster Beverage
97.23
36.19
59.29%
FIZZ
National Beverage
32.69
-9.54
-22.59%
PEP
PepsiCo
143.50
6.08
4.42%
Coca-Cola Corporate Events
Business Operations and Strategy
Coca-Cola’s fairlife unit hit by ransomware disruption
Negative
Jul 17, 2026
On July 16, 2026, Coca-Cola disclosed that its dairy subsidiary fairlife, LLC experienced unauthorized third-party access to part of its systems, including production-related infrastructure, in a ransomware incident. The company activated incident...
Business Operations and StrategyExecutive/Board Changes
Coca-Cola Announces Leadership Transition in North America Unit
Neutral
Jun 25, 2026
On June 25, 2026, The Coca-Cola Company announced that Jennifer Mann will leave her role as executive vice president and president of the North America Operating Unit, stepping down from these positions on July 31, 2026. Beginning August 1, 2026, ...
Executive/Board ChangesShareholder Meetings
Coca-Cola Shareowners Back Board, Reject ESG Proposals
Positive
May 1, 2026
At the 2026 Annual Meeting of Shareowners held on April 29, 2026, Coca-Cola investors re-elected all nominated directors, including CEO James Quincey, with strong majorities, and approved the advisory vote on executive compensation. Shareowners al...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.