Coca-Cola Beats Q3 Estimates as Zero-Sugar and Fairlife Drive U.S. Sales

Coca-Cola (NYSE: KO) reported third-quarter results that topped Wall Street forecasts, powered by resilient demand for zero-sugar beverages, Fairlife milk, and steady international soda sales, despite global economic caution.

Revenue rose to $12.46 billion, surpassing estimates of $12.39 billion, while earnings per share hit $0.82, beating expectations of $0.78. The company maintained its full-year outlook, signaling confidence amid a tough spending environment. Shares rose 3% following the results.

CFO John Murphy said Coca-Cola is prioritizing affordability, unveiling plans to roll out 7.5-ounce cane sugar Coke bottles in the U.S., priced under $2, to attract lower-income consumers. The phased launch will continue into 2026, limited initially by domestic sugar supply and glass bottle capacity.

At the same time, Coca-Cola is expanding its premium and zero-sugar offerings, including Powerade energy drinks, to appeal to health-conscious and affluent consumers.

While demand grew in Europe, the Middle East, and Africa, volumes were flat in North America and Latin America, and dipped 1% in Asia-Pacific, partly due to rising local competition in markets like India and China.

Murphy also noted that sales of Coke’s flagship product are rebounding after a boycott earlier this year tied to false reports about the company’s treatment of Latino workers.

Coca-Cola, like PepsiCo, is also benefiting from a weaker U.S. dollar, which boosts overseas earnings. The company reported 1% overall volume growth and 6% price gains in the quarter.

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