Is Coca-Cola Stock Still Worth Owning After Its Third Quarter?

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Coca-Cola (KO) stock fell 1.6% on October 27, 2026, when the company reported fiscal Q3 2026 results, while the S&P 500 rose 0.6%. Investors pay 27.3 times earnings for the stock, compared with 22.8 for the S&P 500, for growth that comes from Coca-Cola selling more drinks and charging more for them. Management raised its full-year earnings outlook and now expects organic revenue growth of at least 5%, after about 5% in July. Is Coca-Cola still selling more drinks at higher prices?

Coca-Cola Is Still Selling More Drinks

Coca-Cola is still selling more drinks, but its revenue per drink rose less than management aims for. The stock’s decline on the day of the report aligned with other beverage makers, as PepsiCo fell 1.4% and Monster Beverage dropped 2.2%.

Volume was the strong part of the quarter. Coca-Cola’s unit case volume grew 5% in fiscal Q3 2026, ahead of the 2 to 3 points of volume growth management says it aims for, and organic revenue grew 7%.

That growth was uneven across markets. Volume in North America was flat, a result management partly attributed to the timing of the July 4th holiday. Volume declined in Japan, where consumers remained pressured. Management also expects slight destocking in the fourth quarter, which will have six fewer days than a year earlier. The company’s outlook of at least 5% organic revenue growth for 2026 includes both factors.

Revenue Per Drink Grew Less Than Coca-Cola Aims For

Coca-Cola’s price mix, the revenue it gets per drink, grew just 1% in fiscal Q3 2026, below the 2 to 3 points management aims for. Price increases added four points, management said, but a less favorable mix of markets and drinks, along with the timing of investments, took three points away. Management said two-thirds of that three-point drag came from factors it considers manageable going into 2027.

Costs, meanwhile, are rising. Management said cost pressures have accelerated, driven by increased logistics and transportation costs. Coca-Cola’s margins have held so far, with its operating margin at 33.4% in fiscal Q3 2026, up from 32.2% in fiscal Q3 2025.

What Is Behind Coca-Cola’s Higher Earnings Outlook?

About two points of the earnings growth Coca-Cola now expects for 2026 come from currency and deals rather than from its drinks. Management now expects comparable earnings per share to grow at least 11% in 2026, and at least 9% once currency, acquisitions and divestitures are excluded. Both estimates were raised from July, when management guided 9% to 10% and 7% to 8%.

The quarter itself showed the same pattern. Currency added two points to the 11% rise in comparable earnings per share. Management said its margin gains also came partly from currency and from last year’s sale of its finished product operations in Nigeria. The outlook also assumes that the sale of Coca-Cola Beverages Africa closes in the fourth quarter, subject to regulatory approvals.

None of this settles pricing for 2027. Management said it is a little early to give specifics for 2027 and that the company is still looking closely at pricing around the world.

Coca-Cola is still selling more drinks than a year ago, even as the price it gets for each has grown more slowly than management wants. Coca-Cola’s price mix will be the number to watch in its next report, expected in February 2027.

Does This Mean You Should Act On KO?

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