Coca-Cola falls 1.6% after third-quarter results that beat estimates and raised outlook

What happened

Coca-Cola (KO) fell 1.6% on October 27, 2026, after its third-quarter results topped estimates and the company raised its full-year outlook. The stock closed at $91.18 after it opened 2.0% below the previous close. Trading volume was 1.0 times its 20-day average. The S&P 500 on the day rose 0.6% while the Consumer Defensive sector median on the day fell 0.6%.

How big was the move

The decline was 1.6% and was 1.5 times a typical daily move for this stock, making it a larger-than-normal single-session change. Over the last five sessions the stock fell 2.5%, which was 1.1 percentage points worse than the sector median. Market sensitivity remains low: the stock has a beta of 0.07, so the stock tends to move less than the market. In the past five years the stock had 58 sessions with a decline of at least 1.6%; twenty trading days later the median result was a gain of 1.0%, and 34 of 58 were higher.

The technical picture

The stock traded 1.2% above its 20-day moving average and 2.1% above its 50-day moving average, while it remained 11.5% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has spent 201 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) was 53, inside a neutral range between 30 and 70. The stock was 4.4% below its 52-week high, and had risen 4.6% over one month and 2.4% over three months.

Fundamentals and valuation

For the four quarters through October 2, 2026, revenue was $51.05 billion, which grew 7.1% from a year earlier. Diluted earnings per share were $3.40, which rose 12.6% from a year earlier, and gross margin was 62.3% versus 61.6% a year earlier. Operating margin stood at 30.0% compared with 30.7% a year earlier, and free-cash-flow margin was 28.0%. Return on invested capital was 13.9% and the balance sheet showed net debt of 1.4 times EBITDA.

Valuation metrics showed a price to trailing earnings of 26.8 times trailing earnings and a price to forward earnings of 27.6 times expected earnings. Its free-cash-flow yield was 3.6%. The price to trailing earnings reading was lower than 52% of its own readings over the past five years, with a five-year median of 26.8 times earnings, placing current valuation near the center of its recent historical range.

Earnings and analyst expectations

The company reported on October 27, 2026, earnings per share of $0.91 against $0.88 expected, 3.3% above estimates. That marked 11 consecutive quarters beating estimates and an average surprise over the last four reports of 4.0% above estimates. Management said unit case volume was up 5% and cited strength in zero-sugar offerings, premium beverages and local-market execution; it raised its full-year outlook and now expects comparable EPS to grow at least 11% in 2026, the third consecutive upward revision.

Typical market reactions to recent reports have been muted upside: the typical two-day reaction after recent reports was that the stock rose 1.8%. In this session the market reaction was mixed. While Coca-Cola beat estimates and raised guidance, commentary flagged concerns about slowing U.S. demand, which likely contributed to the modest pullback despite generally positive fundamentals and strong momentum scores.

What to watch

• October 27, 2026: third-quarter results showing unit case volume up 5% and EPS of $0.91 versus $0.82 a year ago, and a raised full-year outlook to at least 11% comparable EPS growth
• Consensus price target $96.17, which is 5.5% above the closing price, based on 48 analysts and a consensus rating of Buy
• PromtFinance scores: Growth 84 (Strong), Momentum 95 (Exceptional), Stability 99 (Exceptional)
• Similar sessions in the past five years: 58 sessions with a decline of at least 1.6%; twenty trading days later the median result was a gain of 1.0%, and 34 of 58 were higher
• One year performance: rose 30.8% and was 17.1 percentage points ahead of the S&P 500