Evie Liu
Coca-Cola is set to report its first-quarter results before the market opens on Tuesday. Investors are closely watching whether the soda giant -- one of the market's most reliable defensive stocks -- can keep delivering steady growth as it navigates inflation and evolving consumer tastes.
For the three months ended in March, analysts polled by FactSet expect the company to report net revenue of $12.24 billion, up 9% from $11.22 billion in the year-ago quarter. Adjusted earnings is expected to come at 81 cents a share, up 11% from 73 cents a share the year prior.
Investors have historically liked Coca-Cola stock thanks to its steady cash flow, global scale, and attractive dividends. Over the past few years, shares in the soda giant have outperformed many food-and-beverage peers that are struggling with sluggish sales.
But shares have fallen nearly 7% since the end of February.
There are early signs of consumer fatigue as beverage drinkers push back on price increases. This matters for Coca-Cola because it has relied heavily on price increases to drive revenue. If consumers resist further hikes, growth could slow.
Already, the company posted weaker-than-expected revenue growth in the fourth quarter -- the first time in at least four years.
Consumers continued to shift away from sugary sodas toward zero-sugar and functional drinks. While unit volume of the trademark Coca-Cola grew only 1% in the fourth quarter, unit volume for Coca-Cola Zero Sugar jumped 13% from a year earlier.
Investors will watch for comments regarding a few potential headwinds, including tighter rules around food stamp usage and a new sugar tax in Mexico -- although the World Cup should help boost sales and offset some of those impacts.
For full year 2026, Coca-Cola expects to deliver organic revenue growth of 4% to 5% and adjusted per-share earnings growth of 7% to 8%.
At the end of March, Henrique Braun -- previously Coca-Cola's chief operating officer -- succeeded James Quincey as CEO. Braun has held multiple leadership positions across the globe, including international markets like Latin America and China. This will be his first quarterly report in the new role.
Write to evie.liu@barrons.com
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April 27, 2026 15:33 ET (19:33 GMT)
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