Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Organic revenue | 3.1% | Accelerated |
| Reported revenue | North of 5% | Not stated |
| Core operating profit | 3% | Increase |
| EPS | 2% | Increase |
| International organic revenue | 8% | Increase |
| International operating margin | 105 basis points | Expansion |
Guidance and outlook
- Management did not provide specific numerical guidance ranges for the full year, noting that the EPS outlook was revised downward due to margin performance.
- Detailed 2027 expectations will be provided in February.
How management sounded
Balanced (+3 on our -10 to +10 scale). Management is pleased with top-line acceleration but faces margin pressure from rising input costs and mix, leading to a guidance revision. Management sounded more upbeat than on 1% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
North America Strategy
Asked: Analysts asked about the state of the business and potential strategy tweaks.
Answer: Management expressed dissatisfaction with soft drink performance and is focusing on execution and increased investment.
Margin Pressure
Asked: Analysts asked about the drivers behind the Q4 guidance revision.
Answer: Management cited higher input costs, mix headwinds, and the loss of a tariff benefit in North American beverages.
Strategic Changes
Asked: Analysts asked if the company is considering structural changes like splitting the business.
Answer: Management is open to revisiting all options, including refranchising, to improve long-term performance.
A&M Investment
Asked: Analysts asked about the ROI of marketing spending.
Answer: Management is pivoting to higher-quality, data-driven investments while cutting non-growth costs.
What to watch before the next call
- The impact of rising commodity costs as hedging programs roll off.
- Execution improvements in the North American beverage business.
- Potential structural changes or refranchising decisions in North America.
