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Coca-Cola has outperformed Wall Street’s expectations in its third-quarter earnings and revenue, signaling modest recovery after a slow start to the year. However, the company warned that consumer demand remains soft, particularly among low-income shoppers in key markets like the U.S. and Latin America.

Stronger Earnings but Uneven Growth
Coca-Cola reported adjusted earnings per share of 82 cents, beating analyst forecasts of 78 cents, according to LSEG estimates. Total revenue reached $12.46 billion, slightly above the expected $12.39 billion, representing a 5% year-over-year increase. Net income attributable to shareholders rose to $3.7 billion (86 cents per share), compared to $2.85 billion (66 cents per share) a year earlier.

Organic revenue, which excludes the effects of acquisitions, divestitures, and currency fluctuations, climbed 6%. The company’s unit case volume — a key measure of demand that strips out price changes and currency effects — increased 1%, rebounding from last quarter’s decline.

Regional Performance and Shifting Consumer Behavior
While the global recovery helped lift overall sales, Coca-Cola saw mixed results across regions. Volume growth in North America and Latin America remained flat, suggesting weaker purchasing power among lower-income households. CEO James Quincey noted that “value-conscious consumers” are increasingly shopping at discount retailers, including dollar stores.

In response, Coca-Cola has been ramping up sales of smaller, more affordable products like mini cans, which help maintain accessibility while boosting margins. “After a slower start, we ended with improved performance during the quarter,” said CFO John Murphy, adding that the company remains focused on pricing discipline and affordability.

Premium Brands and Emerging Markets Drive Momentum
Despite volume stagnation in developed markets, Coca-Cola’s premium brands — including Fairlife and Smartwater — continue to outperform, reflecting resilience among higher-income consumers. The Europe, Middle East, and Africa region recorded a 3% increase in overall volume, led by stronger demand in emerging markets.

Globally, Coca-Cola saw the strongest growth in its water, sports, coffee, and tea segment, with bottled water and sports drinks up 3%, and coffee and tea growing 2%. However, sparkling soft drinks volume remained flat, and juice, dairy, and plant-based beverages fell 3% — indicating consumers are becoming more selective in their beverage choices.

Outlook: Stability Ahead, But Growth Remains Fragile
The beverage leader reaffirmed its full-year forecast, projecting comparable earnings per share growth of 3% and organic revenue growth between 5% and 6%. Looking forward, Coca-Cola expects minor benefits from currency movements in 2026 but warned that consumer sentiment and inflation trends could continue to weigh on demand.

COO Henrique Braun added that although spending patterns differ widely across income groups, North America’s volume has shown “sequential improvement for the second consecutive quarter,” a sign that the recovery, while fragile, is gaining traction.

Shares of Coca-Cola rose 4% on Tuesday, reflecting investor confidence in the company’s resilience and ability to adapt to a changing consumer landscape.