The Coca-Cola Company (NYSE:KO) will report its first quarter earnings next week, with analysts at UBS expecting a steady performance from the drinks giant, with continued growth despite a mixed macroeconomic environment.
The firm expects Q1 earnings per share of $0.81, in line with market consensus.
Organic sales are expected to remain strong, supported by both volume gains and pricing, reinforcing Coca-Cola’s positioning as a relatively stable performer within the consumer staples sector.
UBS suggests that full-year underlying guidance is unlikely to change. The company is currently targeting organic sales growth of 4% to 5% and earnings growth of 5% to 6% for fiscal 2026.
While recent US dollar strength could result in a modest adjustment to currency assumptions, analysts do not expect this to significantly alter the broader earnings outlook. The firm maintains that overall earnings per share growth in the range of 7% to 8% remains achievable.
In terms of quarterly performance drivers, Coca-Cola is expected to benefit from solid demand trends in key markets. US tracked channel data indicates sales growth of over 6% for the period, while European markets appear to be delivering low single-digit gains. UBS estimates organic revenue growth in the mid to high single-digit range for the quarter, slightly ahead of consensus expectations.
Volume growth is projected at approximately 3.5%, complemented by price and mix improvements of a similar magnitude. The analysts also noted a temporary boost from additional selling days during the quarter, though the impact is expected to be partially offset by timing-related factors.
Investor sentiment toward Coca-Cola has improved in recent months, according to UBS, as uncertainty has increased across other areas of the consumer staples sector. The company’s relatively predictable earnings profile has made it a more attractive option for investors seeking stability, even as its valuation remains above historical averages.
UBS reiterated its ‘Buy’ rating on the stock, with a price target of $90, implying upside from current levels of about $75.
Coca-Cola will hand down its Q1 report on April 28.