Coca-Cola Delivers a Big Earnings Beat. Here’s What Comes Next for the Stock.

Coca-Cola (NYSE:KO | KO Price Prediction) beat on earnings and revenue in its third quarter and raised its full-year guidance, adding to a rally that has lifted shares 34.09% year to date.

Our 24/7 Wall St. price target is $106.22 over the next 12 months. That means 14.59% upside from the model’s reference price of $92.70.

The model gives KO a high-confidence buy rating. That is a strong signal for a stock with a beta of just 0.32. At noon the shares were at $91.95, down 0.81% on the session, which looks like profit-taking after a strong run.

Sixth Straight Beat Comes With a Bigger Guide

Comparable EPS came in at $0.91 against a $0.8809 estimate, Coca-Cola’s sixth consecutive beat. Revenue of $13.38B exceeded the $12.93B estimate and rose 7.4% from a year earlier.

Unit case volume grew 5%, Zero Sugar grew 16%, and comparable operating margin reached 32.9%. Management lifted comparable EPS growth guidance to at least 11% from 9-10% and raised free cash flow guidance to at least $13 billion.

Barron’s pointed to a weak spot: North American volume was flat. Shares are up 4.71% over the past month and 10.92% over the quarter. They sit just below the 52-week high of $95.37 and well above the low of $65.91.

Why Bulls See $122 or More

The bull case reaches $122.83. The case rests on breadth. India’s top 10 brands each grew double digits, fairlife added capacity, and Coca-Cola has gained value share for 22 consecutive quarters.

Net leverage of 1.3 times EBITDA leaves room to act, and management is exploring a potential IPO of its Indian bottling business. Analysts lean heavily positive, with 7 Strong Buy and 12 Buy ratings against a single Strong Sell.

What Could Drag Shares Toward $92

The bear case is $92.15. The fourth quarter has six fewer days, and divestitures will create an estimated 8% revenue drag in 2027. Management expects the African refranchising to improve margins and returns, so some of that lost revenue should be offset.

The IRS litigation is still open, and Coca-Cola lost share in France and the U.K. A price-to-free-cash-flow ratio of 75.32 looks extended, but it relies on trailing figures that the raised free cash flow guide should bring down.

Coca-Cola Trades Between PepsiCo and Monster

PepsiCo (NASDAQ:PEP) is Coca-Cola’s most direct competitor and offers a value contrast. It trades cheaper, but it cut its core EPS growth guidance to 2.5% to 3.5% while Coca-Cola raised its outlook.

Monster Beverage (NASDAQ:MNST) relies on Coca-Cola for distribution and is the growth benchmark, with Q2 revenue up 20.17%. Coca-Cola’s margins are close to Monster’s at a much lower multiple, so the peer group makes our target look reasonable.

Quality Growth Supports a $106 Target

The 24/7 Wall St. price target of $106.22 carries a buy rating at 90% confidence. The critical factor is rising guidance while peers are cutting theirs.

I’d grow more constructive if 2027 guidance holds high single-digit currency-neutral EPS growth despite the divestitures. I’d grow more conservative if North America stays flat or the IRS ruling goes against Coca-Cola. On balance, the setup favors the bulls.

These projections rely on Coca-Cola continuing to execute on its current strategy. The IRS case or a faster recovery in North America could move these figures significantly in either direction.

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