Coca-Cola Co

Strong Q2 and H1 performance; broad-based growth - Organic revenue +6% and unit case volume +5% in Q2 (benefited from easier prior-year comparisons, FIFA World Cup activation, and favorable weather in some markets). - On a 2-year average, volume +2% (suggesting more “underlying” growth vs. pure comp effects). - Price/mix +2%; concentrate volume ~1 pt behind unit case (timing of concentrate shipments). - Double-digit earnings growth: comparable EPS $0.97, +11% (includes ~2 pts currency tailwind). - Gained value share and expanded margins while still investing behind brands.

Margins up while continuing to invest (good) - Comparable gross margin +~120 bps and operating margin +~90 bps in Q2, driven by underlying expansion plus currency tailwinds. - Management framed this as support for the long-term margin algorithm: continue to improve quality top-line, manage the cost base, and sustain investment. - Key “structural” positive: refranchising benefit expected as CCBA moves out (helping margins later in 2026).

Updated 2026 outlook raised/confirmed at the high end; specific EPS and revenue targets - Company expects high end of prior revenue guidance with ~5% organic revenue growth (vs prior expectations, supported by strong first half). - Expects comparable currency-neutral EPS growth (ex acquisitions/divestitures) of ~7% to 8%. - Comparable EPS growth overall: ~9% to 10% vs. $3 in 2025 (per management’s updated outlook). - Free cash flow ~ $6.9B in Q2; balance sheet remains strong with net debt leverage 1.4x EBITDA (below target 2.0x–2.5x), giving flexibility for reinvestment/capital return. - Calendar item: Q4 has 6 fewer days, and concentrate shipments are expected to lag unit case volume by ~1 pt in Q3, and slightly trail for full year.