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Coca-Cola shares jumped Tuesday, putting the stock on pace for its best day since 2009. The rally followed 7% year-over-year net sales growth and a 5% increase in global unit case volume, the company's strongest quarterly gain in 17 years outside the pandemic.
The company reported Q2 adjusted earnings of 97 cents per share on revenue of $13.4B, beating Wall Street estimates.
Coca-Cola's official sponsorship of the 2026 FIFA World Cup was a key driver. CEO Henrique Braun credited the tournament directly, telling CNBC that Powerade appeared during hydration breaks at matches.
Coke's namesake soda volume rose 5% for the quarter, while Powerade volume climbed 8%, both gains partly attributed to World Cup marketing.
Coca-Cola Zero Sugar volume surged 16%, and Diet Coke rose 7%.
"Diet Coke was up 7% for the quarter, also, having its moment."
John Murphy, CFO, Coca-Cola
CFO John Murphy said Coke Zero's current taste profile is resonating with consumers and flagged European expansion as a priority over the next 12 to 18 months.
The water, sports, coffee, and tea segment led all categories with 6% volume growth. Costa Coffee, which Coca-Cola acquired for $4.9B in 2019, posted same-store sales growth this quarter as the company works to turn the chain around.
Coke Zero Zero, a zero-calorie, zero-sugar, zero-caffeine variant, is being expanded beyond Europe after early success there.
Mr. Pibb volumes rose roughly 20% across the US, with early strength concentrated on the West Coast.
Coca-Cola raised its full-year outlook, now projecting earnings-per-share growth of 9% to 10%, up from 8% to 9%, and organic revenue growth of about 5%, the high end of its prior 4% to 5% range.
Volume growth was led by India, China, the US, and Brazil. In North America specifically, volume rose 3%, even as rival PepsiCo reported that tighter consumer budgets weighed on its US snacks and drinks business.
Braun acknowledged a dynamic consumer environment, noting that gas prices hit a four-year high of $4.56 per gallon in late May amid swings in global oil prices.
Murphy flagged Middle East conflict as a meaningful driver of fuel and aluminum costs heading into 2027, calling higher consumer prices just one lever to offset those pressures.
A recent ransomware attack on Coca-Cola's Fairlife production facilities will not have a material financial impact, Murphy said, with most production back online.
The stock has gained more than 20% in 2026 through Tuesday's close, outperforming many packaged food and beverage peers.
