The Coca-Cola Company (NYSE:KO) raised its full-year profit forecast on Tuesday after reporting better-than-expected second-quarter earnings, as strong pricing and margin expansion helped offset a decline in sales volume.
The beverage giant posted a comparable EPS of $0.87, topping analysts’ estimate of $0.83 and rising 4% year-over-year. Revenue rose 1% to $12.5 billion, slightly below expectations, while comparable operating margin improved to 34.7%, up from 32.8% a year ago.
While unit case volume fell 1%, higher pricing and favorable mix—up 6%—bolstered results.
Coca-Cola reaffirmed its full-year organic revenue growth target of 5% to 6% and lifted its comparable EPS growth forecast to 3%, from a prior range of 2% to 3%.
“Reiterating 2025 organic and moving to high end of comparable EPS guides is also a win,” analysts at Jefferies said, calling Coca-Cola’s performance “a standout against peers.”
Coca-Cola CEO James Quincey said the company is “executing with clear intent and flexibility amid shifting external dynamics,” and remains confident in meeting its updated 2025 outlook.
Regionally, North America and Latin America saw volume declines but benefited from higher pricing, with operating income up 10% and 38%, respectively. EMEA volume rose 3%, while Asia Pacific volume fell 3%. The Bottling Investments segment saw a 5% volume drop and a 35% decline in operating income.
Coca-Cola also confirmed plans to introduce beverages made with real cane sugar in the US this fall, days after President Donald Trump praised the company on social media for using "REAL Cane Sugar" in its drinks. Coca-Cola responded that it appreciated the enthusiasm for its products.
CFO John Murphy said it’s “an 'and,' not an 'or’,” emphasizing that high fructose corn syrup will remain part of the portfolio.