KO AI Stock Analysis – Buy, Hold, or Avoid?
The Coca-Cola Company (KO)
Fundamentals
The Coca-Cola Company demonstrates stable and resilient fundamentals with steady revenue growth and improving profitability metrics, supported by strong brand recognition and effective cost management. Earnings have consistently beaten estimates in recent quarters, reflecting solid operational execution. The company’s strong margin profile and robust cash flows underpin its attractive investment profile despite some modest valuation premiums.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
6.74% YoY
Q2 2026
Net Income
16.14% YoY
Q2 2026
Net Margin
Q2 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q2 2026
Net Income Growth YoY
Latest Quarter: Q2 2026
Revenue Per Share Growth YoY
Latest Quarter: Q2 2026
EPS Growth YoY
Latest Quarter: Q2 2026
Book Value Per Share Growth YoY
Latest Quarter: Q2 2026
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 13.4B | 12.5B | 11.8B | 12.5B | 12.5B | 11.1B | 11.5B | 11.9B |
| Revenue Growth YoY | +6.74% | +12.07% | +2.41% | +5.07% | +1.39% | -1.51% | +6.41% | -0.83% |
| Net Income | 4.4B | 3.9B | 2.3B | 3.7B | 3.8B | 3.3B | 2.2B | 2.8B |
| Net Income Growth YoY | +16.14% | +17.84% | +3.46% | +29.78% | +58.03% | +4.82% | +11.25% | -7.74% |
| EPS | $1.03 | $0.91 | $0.53 | $0.86 | $0.89 | $0.77 | $0.51 | $0.66 |
| EPS Growth YoY | +15.73% | +18.18% | +3.92% | +30.30% | +58.93% | +4.05% | +10.87% | -7.04% |
Profitability Metrics
Technical Analysis
KO is currently in a strong uptrend with the price well above key moving averages and a golden cross in place. Momentum is neutral to cautiously positive based on RSI and ADX levels, suggesting controlled strength rather than overextension. The stock is close to its 52-week high, indicating positive investor interest but some near-term resistance.
No extreme reading
Price in uptrend
Trend developing
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
The Coca-Cola Company demonstrates stable and resilient fundamentals with steady revenue growth and improving profitability metrics, supported by strong brand recognition and effective cost management. Earnings have consistently beaten estimates in recent quarters, reflecting solid operational execution. The company’s strong margin profile and robust cash flows underpin its attractive investment profile despite some modest valuation premiums.
Latest Earnings
Q2 2026 Earnings (Jul 3, 2026)
Earnings Per Share (EPS)
Actual
$0.97
Estimated
$0.93
Surprise
+$0.04
Surprise %
+4.08%
Revenue
Actual
$13.37B
Estimated
$13.17B
Surprise
+$202.04M
Surprise %
+1.53%
Historical Earnings
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $0.97 | $0.86 | $0.58 | $0.82 | $0.87 | $0.73 | $0.55 | $0.77 |
| EPS (Estimated) | $0.93 | $0.81 | $0.56 | $0.78 | $0.83 | $0.71 | $0.52 | $0.74 |
| EPS Surprise | +$0.04 | +$0.05 | +$0.02 | +$0.04 | +$0.04 | +$0.02 | +$0.03 | +$0.03 |
| % Diff | +4.1% | +5.9% | +2.7% | +5.3% | +4.3% | +2.2% | +6.2% | +4.1% |
| Revenue | ||||||||
| Revenue (Actual) | $13.37B | $12.47B | $11.8B | $12.46B | $12.54B | $11.13B | $11.54B | $11.85B |
| Revenue (Estimated) | $13.17B | $12.24B | $12.05B | $12.41B | $12.57B | $11.16B | $10.68B | $11.61B |
| Revenue Surprise | +$202.04M | +$234.75M | -$249.71M | +$49.93M | -$32.13M | -$29.33M | +$861.94M | +$243.77M |
| % Diff | +1.5% | +1.9% | -2.1% | +0.4% | -0.3% | -0.3% | +8.1% | +2.1% |
Valuation
The Coca-Cola Company (KO) is currently trading at a premium valuation supported by solid fundamental performance including robust revenue and earnings growth, alongside improving margins. Analysts are generally positive with a consensus Moderate Buy rating and price targets indicating upside potential, although valuation concerns temper some enthusiasm. The company’s strong brand, global presence, and consistent cash flow underpin its defensive stock status despite elevated multiples.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 20.42 | 21.08 | 32.98 | 19.09 | 19.76 | 22.85 | 30.52 | 27.19 |
| Price to Sales | 27.05 | 26.46 | 25.44 | 22.69 | 24.14 | 27.20 | 23.24 | 26.11 |
| Price to Book | 10.01 | 9.81 | 9.35 | 9.04 | 10.59 | 11.55 | 10.79 | 11.67 |
| Enterprise Value to EBITDA | 64.26 | 69.21 | 92.58 | 65.52 | 62.04 | 72.90 | 86.22 | 83.92 |
| Enterprise Value to Revenue | 29.34 | 29.13 | 28.42 | 25.47 | 27.32 | 30.86 | 26.24 | 28.84 |
Sentiment & Analyst Ratings
Coca-Cola's market sentiment is predominantly positive, driven by strong Q2 2026 financial results, raised full-year guidance, and robust volume growth supported by successful marketing campaigns like the FIFA World Cup. Both professional analysts and retail investors express confidence in the stock's defensive qualities and brand strength, though some caution remains due to valuation metrics near peak levels.
Analyst Recommendations
Risk Assessment
The Coca-Cola Company displays moderate financial strength with adequate liquidity and a manageable but significant debt load. While it benefits from steady revenue growth and raised earnings guidance, risks surrounding a major IRS tax dispute and evolving consumer preferences introduce uncertainty. Overall, the stock carries moderate risk relative to peers in the consumer defensive sector, given a structurally leverage-heavy balance sheet balanced by strong operational cash flow.
Liquidity & Solvency
Frequently Asked Questions about KO
AI Answers: Common Questions About KO
Get AI-powered answers to the questions investors ask most about The Coca-Cola Company
Yes, KO is a good buy given its steady 7-8% revenue growth, 16% net income increase in Q2 2026, and margin expansion to 62.9% gross and 35% operating margins. The stock trades at a P/E of 27.98, reflecting justified premium valuation supported by strong fundamentals and positive technical trends.
No, current analysis does not support selling. While risks exist, the company’s earnings beats, raised guidance, and bullish technical signals suggest holding or buying is preferable unless significant negative developments occur.
Key risks include a substantial IRS tax dispute potentially costing up to $18 billion, commodity and input cost inflation, competitive pressures from healthier beverage trends, and regulatory challenges such as sugar taxes and packaging rules.
Technical analysis suggests upside near the 52-week high of $90.92 with potential for new highs if momentum builds. Analysts’ consensus price targets generally indicate moderate upside from current levels around $87.59.
KO is fairly valued to slightly premium with a P/E near 28, elevated EV/EBITDA, and price-to-sales multiples above sector medians. This premium reflects expected mid-to-high single-digit earnings growth and strong margin expansion.
Fundamentals are strong with consistent revenue growth of ~7.3% YoY, improving gross margins to 62.9%, operating margins near 35%, and EPS growth from $0.51 in Q4 2024 to $1.03 in Q2 2026, supported by volume gains and pricing power.
Technically bullish with a golden cross between 50 and 200 SMAs, price above key moving averages, neutral RSI at 62.38, and moderate volume indicating steady accumulation. Support near $82 and resistance at $90.92 define near-term trading range.
Catalysts include Q2 earnings beats, raised full-year guidance, volume growth driven by marketing campaigns like the FIFA World Cup, margin expansion from cost discipline, and potential resolution of the IRS tax dispute.
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