Coca-Cola Raises Outlook After Successfully Navigating Consumer Caution — Update

By Katherine Hamilton

Coca-Cola boosted its earnings outlook after the company's marketing efforts, including its World Cup campaign, helped drive volume despite consumer caution.

The beverage conglomerate's advertising efforts before and during the World Cup tournament helped fuel a 5% increase in overall case volume during the second quarter. Executives said the growth came even as customers are worried about rising prices.

"While the external environment remains uncertain, our strong first-half performance and business flexibility give us confidence," Chief Financial Officer John Murphy told investors.

Coca-Cola now expects adjusted earnings per share to increase 9% to 10% during the full year, up from a previous guidance range of 8% to 9% growth.

Shares rose 6% to $89.16 on Tuesday morning.

The World Cup campaign was part of Coca-Cola's attempts to focus more on consumer needs, as many of its customers are feeling more concerned about prices and affordability. Chief Executive Henrique Braun called the consumer landscape uneven, adding that low-income shoppers and customers in Latin America and China are especially pressured.

"Many consumers face inflationary pressures, geopolitical uncertainty and economic challenges," Chief Executive Henrique Braun said. "They are evaluating how they shop, what they value and what they want to put in their basket."

The World Cup campaign boosted Powerade volume by 8% and Trademark Coca-Cola by 5% in the quarter.

Profit increased 16% to $1.03 a share in the second quarter. Stripping out certain one-time items, adjusted per-share earnings were 97 cents, ahead of the 93 cents anticipated by analysts, according to FactSet.

Revenue rose 7% to $13.4 billion. Analysts surveyed by FactSet had forecast revenue of $13.17 billion.

The company has been raising prices, which helped drive revenue. Price and mix increased the most in North America, where it rose 4%, contributing to a 2% overall increase globally.

To address price-wary customers, Coca-Cola is adding products such as the mini can, which has an even lower price point than regularly sized bottles. Shoppers can now buy individual mini cans at convenience stores, which the company hopes will attract more budget-conscious customers.

Braun said he expects the challenges to consumer spending to persist through the rest of the year. Still, he sees momentum building from Coca-Cola's customer campaigns. During the World Cup, the company collected more than 25 million records on customers' data, which it plans to use to inform future advertising.

"These insights give us a stronger foundation to better understand consumers, tailor our decisions and improve how we show up in the marketplace," Braun said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

July 28, 2026 10:22 ET (14:22 GMT)