10-Q · July 29, 2026
Coca-Cola delivered a strong Q2: revenue increased 7% to $13.380 billion, operating income rose 9% to $4.672 billion, and operating margin expanded 80 basis points to 34.9%. Volume growth was healthy at 5% worldwide,…
Earnings analysis · 10-Q
KO earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Coca-Cola reported $13.38 billion of revenue and $0.91 diluted EPS, beating consensus estimates of $12.93 billion and $0.88. The filing provides limited quarterly operating detail in the supplied excerpt, but confirms…
Read full summary
Coca-Cola reported $13.38 billion of revenue and $0.91 diluted EPS, beating consensus estimates of $12.93 billion and $0.88. The filing provides limited quarterly operating detail in the supplied excerpt, but confirms effective controls, continued share repurchases, and $57 million of tax-deposit interest income. The principal downside remains the IRS transfer-pricing dispute, including a $6.0 billion paid deposit and potential additional tax and interest liabilities of approximately $14 billion for 2010–2025.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.91
What stood out
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Revenue and EPS beat consensus
Reported revenue was $13.38 billion and diluted EPS was $0.91 for the quarter, exceeding consensus estimates of $12.93 billion and $0.88, respectively.
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Tax deposit generated interest income
The company recorded $57 million of net interest income related to its $6.0 billion IRS tax litigation deposit during the three months ended October 2, 2026.
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Tax position remains supported
Management’s conclusion that its tax positions are more likely than not to be sustained on appeal remained unchanged as of October 2, 2026, despite the tax reserve increasing to $538 million.
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Baltimore case dismissed at trial level
The Baltimore environmental case improved procedurally: on July 22, 2026, the court dismissed the remaining public nuisance claim, although the plaintiff filed an appeal on August 18, 2026.
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Share repurchases continued
The company repurchased 2,732,228 shares under its announced plan during the quarter, with 56,952,886 shares remaining available for repurchase at October 2, 2026.
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Internal controls remained effective
Management concluded that disclosure controls and procedures were effective as of October 2, 2026, and reported no material changes in internal control over financial reporting during the quarter.
What to watch
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IRS tax litigation exposure
The IRS dispute remains material: the Tax Court assessment was $2.7 billion, the total liability including interest was $6.0 billion, and the company had paid a $6.0 billion tax litigation deposit. The company also reported an accrued interest receivable of $589 million as of October 2, 2026.
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Potential additional tax liabilities
If the IRS position is ultimately upheld, the company estimates potential aggregate incremental tax and interest liability of approximately $14 billion for tax years 2010 through 2025 as of December 31, 2025. The estimated increase was approximately $1.4 billion for the first nine months of 2026.
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Tax methodology could pressure ETR
The company estimates that continued application of the Tax Court methodology in 2026 would increase its effective tax rate by approximately 3.8%, assuming similar facts and circumstances and reflecting the One Big Beautiful Bill Act.
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Environmental litigation appeal
The Baltimore environmental litigation is not fully resolved: the plaintiff appealed the dismissal of all claims on August 18, 2026, after the remaining public nuisance claim was dismissed on July 22, 2026.
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Executive trading plan
The company’s potential CEO trading arrangement covers the exercise and sale of up to 136,968 shares through August 28, 2028, subject to conditions; this may create incremental market overhang.
Management's outlook
The provided 10-Q excerpt does not include quantitative operating guidance. Prior full-year guidance was disclosed in the October 27, 2026 earnings release rather than this filing.
Earlier filings 4
10-Q · April 30, 2026
Coca-Cola's Q1 2026 results showed strong financial performance, with revenue rising 5.0% year-over-year to $12.47 billion. Improved operating margins were evident, resulting in earnings per share (EPS) of $0.86,…
10-K · February 20, 2026
The 2025 10-K emphasizes Coca‑Cola’s portfolio and global distribution moat — the Company sold 33.8 billion unit cases in 2025 (33.7 billion in 2024) and its brands deliver 2.2 billion servings per day. Management…
10-Q · October 24, 2024
The Coca‑Cola Company reported Q3 net operating revenues of $11,854,000,000 (vs. $11,953,000,000 in Q3 2023), a slight year-over-year decline of $99 million, while operating income fell to $2,510,000,000 from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.