Coca-Cola reported second-quarter revenue of $13.38 billion, exceeding the $13.16 billion expected by analysts. The company’s adjusted earnings came in at $0.97 per share on July 28, 2026, surpassing the Wall Street consensus of $0.93. Net income for the quarter rose to $4.43 billion, up from $3.81 billion in the same period last year.

Following the announcement, Coca-Cola’s shares climbed more than 7% on the earnings day, touching a record high. Morgan Stanley analyst Dara Mohsenian raised the price target on the stock to $100 from $89, maintaining it as the top pick in the beverage sector. This target sits above the broader analyst consensus, which is near $87.

Volume growth outpaces expectations

Organic sales growth, which combines unit case volume and pricing, reached 7%, exceeding the 5% consensus. Unit case volume grew by 5%, more than double the 2.2% analysts had modeled. The company also pushed through approximately 3% pricing during the quarter. In U.S. Nielsen scanner sales, Coca-Cola outpaced PepsiCo and Keurig Dr Pepper by roughly 400 basis points.

The company’s FIFA World Cup campaign engaged with over 80 million consumers. This initiative helped drive 5% volume growth for Trademark Coca-Cola and 8% volume growth for Powerade in the quarter. The company characterized the consumer environment as dynamic.

Fairlife disruption and recovery

Coca-Cola’s dairy brand Fairlife was offline for 11 days in July 2026 due to a ransomware attack by the group Anubis, which forced a shutdown across all four U.S. plants. The company filed notice of the attack with the U.S. Securities and Exchange Commission (SEC). Despite the interruption, Fairlife sales grew 18% year over year.

Coca-Cola had resumed the majority of Fairlife’s U.S. production by the time it reported earnings. Morgan Stanley calculates that Fairlife alone could add more than 100 basis points a year to Coca-Cola’s corporate sales growth over the long term.

Valuation debate continues

While Coca-Cola posted strong results, PepsiCo’s second-quarter earnings were mixed, with revenue jumping but earnings per share coming in below expectations. Morningstar’s Kristoffer Inton reiterated caution on Coca-Cola’s valuation; he also noted that PepsiCo offers more room to run. The State Street Consumer Staples Select Sector SPDR ETF (XLP) had a year-to-date NAV return of 8.32% as of June 30, 2026.