AI Takeaway
Coca-Cola delivered a strong Q1 FY2026 with revenue surging 12.1% YoY to $12.47B, net income rising 17.8% to $3.92B, and operating cash flow swinging to a positive $2.02B from a negative $5.20B in the prior year period.
Revenue
$12.47B
++12.07% YoY
EPS (Basic)
$0.91
++18.18% YoY
Gross Margin
63.0%
++0.36% YoY
Operating Income
$4.36B
++19.13% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 12.1% YoY to $12.47B in Q1 FY2026, up from $11.13B in Q1 FY2025, reflecting strong top-line momentum across the business driven by pricing power and volume gains.
Source: Source: 10-Q Income Statement
Gross margin improved modestly to 62.96% from 62.59%, while operating margin expanded meaningfully by ~207 basis points to 34.95% from 32.88%, indicating effective cost discipline relative to revenue growth. SG&A grew only 7.4% versus revenue growth of 12.1%, demonstrating operating leverage.
Source: Source: 10-Q Income Statement & Key Ratios
Operating cash flow swung dramatically from -$5.20B in Q1 FY2025 to +$2.02B in Q1 FY2026, a YoY improvement of $7.22B, signaling a significant normalization in working capital dynamics after the prior year's cash outflows.
Source: Source: 10-Q Cash Flow Statement
2 more insights available
Upgrade to unlockAs a global beverage company generating significant revenue outside the United States, Coca-Cola is highly exposed to foreign currency fluctuations. Adverse movements in key currencies can materially impact reported revenues and earnings. The 12.1% revenue growth may partially mask underlying organic growth rates when currency headwinds are present.
Source: Source: 10-Q Income Statement & Balance Sheet
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Upgrade to unlockReported EPS of $0.86 versus the $0.84 analyst consensus — a +2.9% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $12.47B | $11.13B | +12.07% |
Cost of Revenue | $4.62B | $4.16B | +10.98% |
Gross Profit | $7.85B | $6.97B | +12.72% |
Operating Income | $4.36B | $3.66B | +19.13% |
Net Income | $3.92B | $3.33B | +17.84% |
EPS (Basic) | $0.91 | $0.77 | +18.18% |
EPS (Diluted) | $0.91 | $0.77 | +18.18% |
SG&A Expense | $3.47B | $3.23B | +7.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $104.22B | $101.72B | +2.46% |
Current Assets | $30.39B | $26.18B | +16.09% |
Current Liabilities | $22.38B | $23.81B | -6.01% |
Stockholders' Equity | $33.63B | $26.2B | +28.36% |
Cash & Equivalents | $10.57B | $8.42B | +25.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.02B | $-5.2B | +138.85% |
Investing Cash Flow | $1.75B | $-1.07B | +263.64% |
Financing Cash Flow | $-3.87B | $3.43B | -212.70% |
Dividends Paid | $2.28B | $89M | +2462.92% |
Share Buybacks | $477M | $370M | +28.92% |
D&A | $264M | $267M | -1.12% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 63.0% | 62.6% | +0.36% |
Operating Margin | 35.0% | 32.9% | +2.07% |
Net Margin | 31.5% | — | — |
ROE | 11.7% | — | — |
ROA | 3.8% | — | — |
Current Ratio | $1.358 | — | — |
Other companies in Soft Drinks & Non-alcoholic Beverages
Coca-Cola reported EPS of $0.91 in Q1 FY2026, up 18.2% from $0.77 in Q1 FY2025. While specific analyst consensus estimates are not included in the filing, the strong double-digit growth in both EPS and net income ($3.92B, +17.8% YoY) suggests a robust quarter relative to historical performance.
Coca-Cola's revenue grew 12.1% YoY to $12.47B in Q1 FY2026, compared to $11.13B in the same period last year. This growth was accompanied by gross profit rising 12.7% to $7.85B, indicating that revenue gains translated effectively into profitability.
The key highlights from Coca-Cola's Q1 FY2026 earnings include: revenue of $12.47B (+12.1% YoY), net income of $3.92B (+17.8% YoY), and a dramatic turnaround in operating cash flow to +$2.02B from -$5.20B in Q1 FY2025. Operating margin also expanded by approximately 207 basis points to 34.95%, reflecting strong cost discipline.
Based on the financial data, key risks for Coca-Cola include foreign currency exposure given its global revenue base, commodity cost inflation (cost of revenue rose 11.0% YoY to $4.62B), and elevated dividend obligations ($2.28B paid in Q1 FY2026 vs. $89M in Q1 FY2025). The company also carries significant balance sheet leverage with total assets of $104.22B against equity of $33.63B.
Coca-Cola's financial health appears solid: the current ratio stands at 1.36x, cash and equivalents grew 25.6% YoY to $10.57B, and stockholders' equity surged 28.4% to $33.63B. Operating cash flow turned strongly positive at $2.02B, and the company continued returning capital via $2.28B in dividends and $477M in share buybacks during the quarter.