KO · Q1 FY2026
COCA COLA CO Q1 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $12.47B | $11.13B (yr ago) | Beat |
| EPS | $0.91 | $0.77 (yr ago) | Beat |
| Free Cash Flow | $1.75B | -$5.51B (yr ago) | Beat |
| Gross Margin | 63.0% | 62.6% (yr ago) | Beat |
| Operating Margin | 35.0% | 32.9% (yr ago) | Beat |
What changed
Revenue increased 12.0% from Q1 FY2025, while EPS rose 18.2% to $0.91. Gross margin expanded 0.4 percentage points, operating margin gained 2.1 points and free cash flow swung from negative $5.51 billion to positive $1.75 billion.
Impact on the investment thesis
The quarter supports a base fair value of $80 per share, established from 25 times supplied TTM EPS of $3.18. Stronger growth, margins and cash conversion improve confidence in earnings quality, but the $87.83 share price already discounts much of that strength.