Coca-Cola lifts profit forecast as global soda demand holds firm

COCA-COLA on Tuesday (Oct 27) raised its annual profit forecast, betting on resilient demand for its zero-sugar sodas and pricier beverages such as fairlife milk to help offset higher input costs, particularly in North America.

The company’s strong volume growth this year across its trademark sodas and other beverage brands contrast with rival PepsiCo’s struggles with weak snack demand in the United States.

Coca-Cola has sought to win over increasingly selective consumers with smaller, cheaper packs in the United States alongside pricier offerings such as Coca-Cola Cherry Float and new Topo Chico and fairlife varieties.

Growth in India, China, Mexico and Brazil helped global unit case volumes rise about 5 per cent in the three months ended Oct 2, the company said. North American volumes were flat.

Coca-Cola now expects comparable currency-neutral earnings per share to grow at least 9 per cent in 2026, up from its previous forecast of 7 per cent to 8 per cent.

The company, however, is grappling with higher packaging costs as the US war in Iran pushes up commodity prices. Coca-Cola said in July that aluminum and PET costs had risen more than expected this year.

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Third-quarter revenue rose 7.4 per cent to US$13.38 billion, beating analysts’ estimate of US$12.92 billion, according to data compiled by LSEG. Adjusted earnings of 91 cents per share also topped estimates of 88 cents.

Coca-Cola’s shares pared gains and were marginally lower in premarket trading. The stock has jumped about 33 per cent in 2026 and is on track for a third straight year of gains despite broader weakness in consumer spending and market volatility stemming from the war in Iran. REUTERS