Coca-Cola (KO) Financials

Coca-Cola’s Q2 2026 statements show improving operating momentum and cash generation. Revenue increased to $13.38 billion from $12.54 billion in Q2 2025, while operating income rose 9.2% to $4.67 billion. Net income attributable to common shareholders climbed 16.1% to $4.43 billion, lifting diluted EPS to $1.03 from $0.89.

Cash flow also strengthened materially. Operating cash flow reached $5.52 billion, up from $3.81 billion a year earlier, while capital expenditures declined to $418 million from $442 million. This implies quarterly free cash flow of approximately $5.10 billion, providing substantial funding for dividends, debt reduction and other shareholder returns.

• Accelerating revenue growth: Q2 2026 revenue increased approximately 6.7% year over year, compared with growth of roughly 1% in Q2 2025 and 5.5% in Q2 2024.
• Improving profitability: Gross profit rose 7.6% year over year, and the operating margin expanded to approximately 34.9% from 34.2% in Q2 2025.
• Strong EPS growth: Diluted EPS increased to $1.03 from $0.89, supported by higher operating income and greater interest and investment income.
• Operating cash flow rebound: Q2 operating cash flow rose nearly 45% year over year to $5.52 billion. This is a significant improvement from the weak $2.02 billion generated in Q1 2026 and the negative operating cash flow reported in Q1 2025.
• Healthy free cash flow conversion: Q2 free cash flow was approximately $5.10 billion after capital spending, giving Coca-Cola ample liquidity to support its dividend and other capital-allocation priorities.
• Improved liquidity: Cash and equivalents increased to $12.91 billion from $9.59 billion in Q2 2025. Total current assets of $32.88 billion exceeded current liabilities of $25.20 billion, producing a current ratio of approximately 1.3.
• Lower leverage: Short- and long-term debt totaled approximately $43.5 billion in Q2 2026, down from roughly $45.1 billion in Q2 2025. Debt also declined slightly from Q1 2026 despite continued dividend payments.
• Growing shareholder distributions: Coca-Cola paid $2.28 billion in dividends during Q2 2026, compared with $2.19 billion in Q2 2025 and $2.09 billion in Q2 2024, reflecting continued support for income-focused investors.
• Working capital remains a key swing factor: The Q2 2026 increase in operating assets and liabilities contributed $1.13 billion to operating cash flow, reversing the $2.05 billion use of cash in Q1 2026. The volatility means quarterly cash flow may not always track reported earnings.
• Financing continues to reduce cash: Coca-Cola recorded a $2.67 billion financing cash outflow in Q2 2026, primarily because of dividends, debt repayments and share repurchases. Although these actions benefit shareholders, they limit the amount of internally generated cash retained on the balance sheet.

Across the reported periods from 2022 through Q2 2026, Coca-Cola has generally increased revenue, earnings and asset balances, while maintaining a consistent dividend program. However, quarterly cash flow has been uneven because of working-capital movements, investment purchases and debt activity. Investors should also note that several historical figures in the supplied data are marked as restated, so comparisons with earlier periods should be interpreted with some caution.