Coca-Cola raised its full-year earnings outlook for the third consecutive quarter, projecting comparable earnings per share growth of at least 11%, compared with its previous forecast of 9% to 10% growth. The company also increased its organic revenue outlook to at least 5%, slightly higher than its prior guidance of approximately 5% growth.
In the third quarter, Coca-Cola reported net income attributable to shareholders of 4.01 billion dollars, or 93 cents per share, compared with 3.7 billion dollars, or 86 cents per share, a year earlier. Excluding transaction gains and other items, the company earned 91 cents per share. Net sales rose 7% to 13.4 billion dollars, while organic revenue, which strips out acquisitions, divestitures and foreign currency effects, also increased 7% for the quarter.
Volume performance showed a mixed picture across regions. Unit case volume increased 5% for the second consecutive quarter, driven by stronger demand outside North America. However, Coca-Cola's home market reported flat volume. According to CFO John Murphy, the North American business would have shown volume growth if not for the timing of the Fourth of July holiday and a months-long shortage of Topo Chico, a sparkling water brand the company owns. Murphy said the underlying momentum remains strong. He noted that consumers across income levels continue to seek value, and that Coca-Cola's system has responded well to this demand.
Globally, Coca-Cola's sparkling soft drinks business saw volume increase 5%, lifted by growth in Coke, Coke Zero Sugar and Diet Coke. Murphy highlighted Diet Coke's resurgence, noting that the brand is reinventing itself with younger consumers. In the water, sports, coffee and tea division, volume climbed 5%, fueled by increased demand for water, including the premium Smartwater brand. Demand for tea and coffee remained flat, while sports drinks declined. The juice, value-added dairy and plant-based beverages business reported flat volume despite growth in brands like Fairlife and Minute Maid.
For savers, borrowers and investors in the United States, Coca-Cola's stronger-than-expected earnings growth and raised guidance signal resilience in consumer spending despite economic pressures, though the flat North American volume suggests challenges in the company's largest market.