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Coca-Cola Consolidated reported Q2 FY2026 revenue of $2.1 billion, up 10.6% from $1.9 billion a year earlier. The company attributed the increase primarily to higher volume, annual pricing actions and the timing of the Fourth of July holiday.
The filing said second-quarter volume rose 7.6%, including a 7.0% increase in sparkling drinks and a 9.4% increase in still beverages. It estimated that the holiday timing increased total volume by approximately 1.0%.
Gross margin fell to 37.9% from 40.0%. The company attributed the decline primarily to higher aluminum costs, which added approximately $45 million in input costs compared with the second quarter of 2025 and outpaced its annual pricing actions. Operating margin declined to 13.2% from 14.7%.
Coca-Cola Consolidated reported diluted EPS of $2.38, compared with $2.15 a year earlier. Its filing said net income declined to $158.8 million from $187.4 million, affected by non-cash fair value adjustments and higher net interest expense. Free cash flow was $131.4 million, compared with $154.7 million a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $2.1 billion | $1.9 billion | 10.6% |
| Diluted EPS | $2.38 | $2.15 | 10.7% |
| Gross margin | 37.9% | 40.0% | −2.1 percentage points |
| Operating margin | 13.2% | 14.7% | −1.4 percentage points |
| Free cash flow | $131.4 million | $154.7 million | −15.1% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $386.7 million | $378.7 million | Beat by 2.12% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, Coca-Cola Consolidated said sparkling volume growth was led by zero-sugar and flavor offerings, while still-drink growth included contributions from Core Power, Powerade, smartwater and Monster.
The company said it is looking to consolidate nearby warehousing and distribution operations into new facilities to increase capacity, expand production capabilities, reduce production costs and add automation. It expects approximately $300 million in capital expenditures in fiscal 2026 and expects operating expense growth to moderate for the remainder of the year as it cycles the prior year’s investment in front-line employees.
Guidance
Coca-Cola Consolidated said the fourth quarter of 2026 will include six fewer days than the fourth quarter of 2025. The company said the full fiscal years of 2026 and 2025 have the same number of days.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Capex | FY2026 | $300.0 million | — | New |
| Operating expenses | H2 FY2026 | Coca-Cola Consolidated expects operating expense growth to moderate for the remainder of 2026. | — | — |