$KO shares defy gravity after earnings, soaring to new all‑time highs

Most food and beverage companies have grown only one way over the past few years: by raising prices. Volumes are flat or falling, but prices march higher, so on paper it still looks decent.

Coca-Cola, however, reported Q2 2026 results this morning and broke that pattern. Global volumes rose 5%, revenue grew 7% to $13.4 billion, and the operating margin widened from 34.1% to 34.9%.

The numbers that drove the market’s reaction

Adjusted earnings per share reached $0.97 versus the $0.93 expected, and revenue came in at $13.38 billion against the $13.16 billion consensus. Net income jumped to $4.43 billion from $3.81 billion a year ago, or $1.03 per share on a GAAP basis. Organic revenue grew 6%, with 4 points coming from concentrate volume and 2 points from price/mix.

Volumes were led by India, China, the U.S., and Brazil. That means the company isn’t growing only in emerging markets where the drink is cheap, but also in North America, where volume rose 3% and price/mix added 4%. Judging by those numbers, the American consumer clearly isn’t cutting back on Coke.

World Cup mastery

This was the quarter where being an official FIFA partner paid off. The campaign ran in more than 180 markets, generating over 60 billion impressions and more than 9 billion views. Powerade grew 8% thanks to hydration breaks. On top of that, Coca-Cola reached over 80 million consumers via connected packaging and acquired 25 million new customers.

Where things aren’t going as well

Asia posted the fastest volume growth of any region, up 8%, but price fell 9%. The reason is that more units of cheaper packaging are being sold there, which doesn’t help margins. Moreover, in Europe, the Middle East & Africa, comparable currency‑neutral operating profit declined by 5%.

Guidance was raised, and twice at that

The company lifted its full‑year adjusted EPS growth outlook to 9–10% from the previous 8–9%, guided organic revenue to roughly 5%, and raised free cash flow to $12.4 billion from the prior $12.2 billion. That alone is positive for shareholders.

The stock

Shares are now rising almost 6% on the day and are trading at a new all‑time high. $KO was already trading around $84 ahead of the results, up roughly 22% year‑to‑date, with a trailing P/E near 26. So the company is trading at a relatively rich valuation versus the broader market.

On the other hand, we have a 64th consecutive year of dividend growth, currently $0.53 per quarter, or $2.12 annually.

The company is a cornerstone of my portfolio, and I have no plans to sell. But the same goes for any purchases: right now, it’s too expensive for me.