Oct 27, 2026 earnings call — Q3 results and 2026 guidance update
Updated full-year 2026 guidance to at least 5% organic revenue growth and at least 11% comparable earnings per share growth.
Revenue $13.4B (est $12.9B) · EPS $0.91 (est $0.88)
Key quotes
"In Mexico, the environment remains challenging, but we are seeing encouraging progress by combining affordability, strong revenue growth management capabilities, and locally relevant marketing and disciplined execution."
"One, affordability is working. Two, both zero sugar and original taste are recruiting consumers. And three, execution and local relevance are helping us win."
"Our disciplined investments in digital capabilities are creating momentum across many of our markets and brands."
Analyst Q&A 11
Using events and tech to keep customers
Q (Dara Mohsenian · Morgan Stanley): They asked how FIFA World Cup and America250 taught the company to use tech to activate events and keep extra customers. They also asked how the company thinks about sustaining volume growth into 2027 given tough comparisons.
A: Management said the events let them pressure-test end-to-end activation and that tech, data and AI are already used in campaigns to drive engagement down to transactions. They said results show momentum across markets and categories, and they feel the strategy is working heading into 2027. They noted they are cycling a high volume year but believe they earned it and have plans under their control.
"We showed up really well as a system, not only in North America, but globally, and we leveraged that into Q3, and we're going to continue to leverage this in Q4 and 2027." — Henrique Braun (CEO)
Price mix control and 2027 outlook
Q (Chris Carey · Wells Fargo): He asked how the price mix strategy will evolve into 2027 and how much control the company has over price mix versus factors outside their control (geographic and category mix, pricing investments).
A: Management said they still target a balanced revenue algorithm: about 2-3 points volume and 2-3 points price mix. They noted four points of underlying pricing this quarter but said the mix piece drove the PMO impact and that about two-thirds of the mix shift related to actions they took or that are manageable. They expect some geographic mix headwinds as developing markets grow faster volumetrically, but much of the recent mix movement is controllable.
"But the mix piece, we will continue to see some geo mix headwinds, just given the nature of the overall portfolio globally with the developing markets will continue, I believe, to outgrow some of the developed markets volumetrically." — John Murphy (CFO)
Marketing spend and gross margin drivers
Q (Lauren Lieberman · Barclays): She asked how much of SG&A went to marketing this quarter, whether that sets up 2027, and what drove the 70 basis points of underlying gross margin.
A: Management said gross margin breaks into three buckets and the underlying strength reflects quality of the top line plus cost management, implying modest expansion in the future. They confirmed marketing investments were increased to set up a strong start to 2027, including double-digit above-the-line growth and programs with bottlers. They expect marketing to grow roughly in line with gross margins as they shape the P&L for 2027 and beyond.
"Regarding the marketing investments, yes, we have taken a number of actions in recent months to set us up for a strong start to 2027." — John Murphy (CFO)
Bottler costs and system response
Q (Steve Powers · Deutsche Bank): He asked how bottler economics look today given bottlers face more inflation, and whether that affects pricing, investment levels, or how system economics are shared for 2027 planning.
A: Management said they view planning from a system perspective and are anticipating investments for 2027, using this year's investments to be ahead of the curve. They said commodities have been manageable so far and they are working with bottlers using system levers such as cross-enterprise procurement, productivity, cost management and RGM tools to align operations with growth plans. They said so far they believe costs will be manageable but will learn more in the coming months.
"One of them, it is our cross-enterprise procurement group that we procure the big commodities that we have for next year together." — Henrique Braun (CEO)
North America timing and price mix
Q (Filippo Falorni · Citi): He asked Henrique to expand on North America: the timing impact of July 4, finished goods effects, and whether they expect improvement. He also asked how to think about price mix given comps like Topo Chico and fairlife.
A: Management said North America performance is solid: they grew, gained value share, expanded margins and got pricing in line with inflation. They said price mix was impacted by cycling a very strong prior year for premium finished goods including Topo Chico and BODYARMOR, and if you exclude those effects and the July 4 timing, they would see volume growth. They reiterated confidence in momentum and noted areas to work on like Sprite, BODYARMOR and supply chain as they plan into 2027.
"If you take that out actually, and you take the impact of the July 4th that fell into the second quarter, and we mentioned that before, we would see volume growth." — Henrique Braun (CEO)
Affordability strategy and Q4 destocking
Q (Andrea Teixeira · JPMorgan): She asked whether RGM can enable selective pricing while protecting entry price points (affordability vs premiumization). She also asked for clarification on Q4 guidance range and how to think about destocking headwinds with six fewer selling days.
A: Management said affordability is part of the broader revenue growth management approach and they balance affordability and premiumization by adapting packaging and offerings to keep brands relevant and within consumers' budgets; they gave examples (India to Africa package) and said both legs work in tandem for 2027. On Q4, management said the guidance reflects their best information today, noted the environment is unpredictable and the system sometimes gets ahead, and they expect some destocking in a couple of segments but will monitor and update if inputs change.
"The expectation that we highlighted in guidance reflects the best information we have at the moment." — John Murphy (CFO)
Free cash flow drivers and optionality
Q (Robert Ottenstein · Evercore): He asked what drove the free cash flow increase, how the balance sheet and FCF create optionality into 2027, and how to think about possible outcomes from the IRS case.
A: Management said three primary drivers of strong free cash flow are underlying business performance, working capital progress (cash conversion cycle very good), and timing (CapEx behind year-to-date). They said they strengthened the balance sheet to be ready for an IRS decision, can manage various outcomes, and will focus on organic investment while remaining open to other opportunities; returning capital remains via the dividend currently.
"Key message, though, is free cash flow is strong, and we've got momentum as we close out the year into next year." — John Murphy (CFO)
Monthly trend and Topo Chico supply
Q (Peter Grom · UBS): He asked the team to elaborate on the sequential monthly improvement in North America volumes and whether momentum continued into Q4, and whether at-home vs away-from-home patterns shifted.
A: Management said volumes improved month-on-month across the quarter and the biggest impact was the July 4 timing and cycling Topo Chico last year. They said Topo Chico is back in Texas and that volume will start to come back, that trademark Coca-Cola and Zero grew well and other innovations are encouraging. They cautioned Q4 comps are tough (last year was largest North America quarter) and there are six fewer selling days to consider, though daily average sales showed built momentum.
"We just got back with Topo Chico in Texas, so it is great news, I think, to everybody and to the consumers that have been waiting for too long." — Henrique Braun (CEO)
FX guidance and recent moves
Q (Peter Galbo · BofA): He asked whether FX guidance was updated through yesterday and how recent big currency moves (last 48 hours) are factored into the 2027 currency outlook and slight headwind comment.
A: Management said the short answer is no — they have not yet reflected the last 24-48 hours of currency moves and need to take those into account. They are watching currencies carefully and would update guidance if there is sufficient movement in the coming weeks; the script numbers do not reflect the recent BRL movement.
"We need to take into account what's unfolded over the last 24-48 hours." — John Murphy (CFO)
Destocking and margin impact
Q (Kaumil Gajrawala · Jefferies): He asked whether shipments are expected to be below, in line with, or above volumes for the full year and where destocking might occur. He also asked how strong concentrate shipments will flow through to gross margin and SG&A leverage.
A: Management said their ingoing assumption is shipments will run slightly behind volumes for the full year, though this could deviate as events unfold; that assumption links to their guidance. On margins, they expect margin expansion for the full year and said the exact amounts are on trend with what they've seen so far this year.
"Right now, if you ask me, we expect shipments to run slightly behind volumes for the full year." — John Murphy (CFO)
fairlife supply, growth, and plans
Q (Kevin Grundy · BNP Paribas): He asked for updated plans and definition of success for fairlife, where the brand fits in consumption occasions, and the opportunity outside the U.S. given supply constraints.
A: Management said fairlife delivered another quarter of strong double-digit growth across variants and that Webster's ramp-up improved supply so they could launch vanilla, with banana planned in the pipeline for 2027. They said the priority is to keep up with demand in the U.S. and Canada, the brand has strong equity and will be embedded in long-range plans, and more details will come as they work through capacity and expansion.
"The good news is we're getting the product back on the shelf to keep up with the demand, and the pipeline looks strong going into 2027." — Henrique Braun (CEO)