The Coca-Cola Company (NYSE:KO) shares gained on Tuesday morning after the beverage giant beat first-quarter earnings estimates and raised its full-year profit outlook, helped by stronger sales growth across regions and resilient demand for its core soft drink brands.
The company reported first-quarter adjusted earnings per share of $0.86, ahead of analysts’ estimates of $0.81, while revenue rose 12% year-over-year to $12.5 billion, topping expectations of $12.14 billion.
Organic revenue grew 10% in the quarter, supported by a 3% rise in unit case volume and a 2% increase in price/mix. Analysts at Bank of America had expected organic sales growth of 5.8%.
Shares of Coca-Cola were up 5.3% in morning trading.
Unit case volume growth also outpaced expectations, rising 3% compared with Bank of America’s forecast for a slight decline. Asia Pacific was a key driver, with volume up 5%, led by strong demand in China and India, the bank said.
North America posted 12% organic revenue growth and a 4% increase in unit case volume, while Europe, the Middle East and Africa delivered 11% organic revenue growth with volumes up 2%.
Trademark Coca-Cola volume rose 2%, while Coca-Cola Zero Sugar volumes jumped 13%. Water, sports, coffee and tea volumes increased 5%, with tea volumes up 8%.
Comparable operating margin came in at 34.5%, broadly in line with expectations, while operating income rose 19% year-over-year.
Following the stronger-than-expected quarter, Coca-Cola raised its full-year comparable earnings per share growth forecast to 8% to 9%, up from its prior range of 7% to 8%.
It also lifted its currency-neutral EPS growth outlook to 6% to 7%, from 5% to 6% previously.
The company maintained its forecast for organic revenue growth of 4% to 5% and free cash flow of about $12.2 billion.
Bank of America reiterated its “buy” rating and $88 price target on the stock, calling Coca-Cola one of its top U.S. consumer staples picks for 2026.
The brokerage said Coca-Cola’s pricing power, global scale and resilient organic sales growth justified its premium valuation relative to non-alcoholic beverage peers.