The Coca-Cola Company (NYSE:KO) is expected to deliver a solid second quarter performance, with analysts at Jefferies and Bank of America highlighting resilient demand, steady volume trends and the company’s ability to navigate ongoing cost and macroeconomic pressures.
Jefferies analysts wrote that they expect Coca-Cola to report stronger organic sales growth and a modest earnings beat for the quarter, forecasting organic sales growth of 3.9%, above the Street estimate of 3.5%.
The firm expects adjusted earnings per share of $0.94, slightly ahead of consensus of $0.93 and representing 8.5% year-over-year growth.
The analysts wrote that Coca-Cola is likely to reiterate its full-year guidance for 4% to 5% organic sales growth and 8% to 9% earnings per share growth, citing strong visibility into the company’s sales and cost outlook for the remainder of 2026.
Jefferies said investor attention will likely focus on any commentary around potential sales and margin impacts from the ongoing Middle East conflict, particularly within the company’s Europe, Middle East and Africa segment, as well as foreign exchange headwinds.
The firm lowered its second quarter organic sales growth estimate from 5.1% to better reflect concentrate sales timing, now modelling 1.6% growth in concentrate sales while expecting unit case volumes to trail by “a couple points” during the period.
For the full year, Jefferies kept its estimates largely unchanged, forecasting 5% organic sales growth, modest gross margin expansion and earnings per share of $3.28, up 9.2% year over year.
The analysts highlighted Coca-Cola’s core soft drinks portfolio and Fairlife contribution as supporting its longer-term growth outlook, writing that positive volumes, resilient earnings growth and improving returns on invested capital reinforce its view that Coca-Cola remains a quality consumer staples name.
Bank of America analysts also maintained a positive outlook ahead of Coca-Cola’s second quarter earnings report, estimating total company unit case volume growth of 2.0% year over year, broadly in line with Visible Alpha consensus of 2.2%.
The analysts wrote that Coca-Cola continues to benefit from resilient demand, limited inflation exposure due to its asset-light business model and balance sheet flexibility.
Bank of America reiterated its ‘Buy’ rating and raised its price objective to $95 from $90, above current levels of about $83, based on a higher valuation multiple of 27 times estimated 2027 earnings per share.
Bank of America’s regional analysis showed improved expectations in Europe, the Middle East and Africa and Asia Pacific offsetting weaker trends in Latin America. The firm lowered its Latin America unit case volume forecast to 1.4% growth from 2.9%, reflecting softer expectations for Mexico, while raising its EMEA estimate to 2.3% growth from 1.3% and Asia Pacific estimate to 2.9% growth from 2.4%, supported by stronger expectations for Japan.
Coca-Cola will report its Q2 earnings on July 28 before the market opens.