Coca-Cola Is Up 27% This Year and Just Raised Guidance Again. Is KO Still Worth Buying at $87?

Key Stats for Coca-Cola Stock

• 52-Week Range: $69.11 to $92.78
• Street Mean Target: ~$90
• TIKR Model Target (Mid): ~$107
• Market Cap: ~$377 billion
• LTM Net Income Margin: ~27%
• NTM P/E: ~27x
• Dividend Yield: ~3.0%
• Fwd 2-Yr EPS CAGR: ~10%

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KO Just Beat Estimates for the Fifth Consecutive Quarter. The FIFA World Cup Helped.

Coca-Cola (KO) sells beverages across more than 200 countries through a network of independent bottling partners that handle manufacturing and distribution, while the company focuses on concentrate production, brand building, and marketing.

That asset-light model generates consistently high margins and the cash that has funded 64 consecutive years of dividend increases. What has shifted in 2026 is that the business is growing faster than the market expected, and CEO Henrique Braun has raised guidance twice in a row as the momentum builds.

In Q2 2026, net revenues reached $13.38 billion, up 7% year over year and ahead of the $13.16 billion estimate. Organic revenue grew 6%, driven by 5% unit case volume growth and 2% price/mix contribution. Comparable EPS came in at $0.97, up 11% and ahead of the $0.93 consensus.

Trademark Coca-Cola volume grew 5% globally, the strongest result in 17 years, excluding the COVID recovery period, and Coca-Cola Zero Sugar volume surged 16% as consumers continue shifting away from full-sugar carbonates.

The FIFA World Cup, held across the U.S., Canada, and Mexico this summer, provided one of Coca-Cola’s largest global activation platforms in years. Braun credited the tournament with distributing more than 1 billion connected Panini stickers across 40 markets, driving both engagement and physical volume.

Management raised full-year guidance to approximately 5% organic revenue growth and 9% to 10% comparable EPS growth, and lifted full-year free cash flow guidance to $12.4 billion.

Consensus estimates put full-year 2026 EPS at around $3.30, compounding toward $4.25 by 2030. The slope is steady rather than dramatic, which is the point. KO compounds reliably rather than sprinting, and the earnings trajectory gives the dividend room to keep growing year after year.

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The Dividend Is the Reason Most People Own This Stock

Coca-Cola has raised its annual dividend every year for 64 consecutive years, earning a place among the Dividend Kings, companies with at least 50 uninterrupted years of payout growth.

The chart below shows the progression over just the past five years: from $1.68 per share in 2021 to $2.04 in 2025, each year higher than the last, regardless of macro conditions.

At $87.55, the annual dividend of $2.04 yields approximately 2.3%, with a payout ratio that leaves comfortable room for continued increases as earnings grow.

Investors who own KO for income think about total return differently than growth investors. The dividend compounds quietly over time, and reinvested dividends have historically accounted for a significant share of KO’s long-run returns.

With EPS expected to reach around $3.30 this year and grow toward $4.25 by 2030, the dividend has a clear runway ahead of it.

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What Does the Valuation Model Say?

The TIKR valuation model applies roughly 3% annual revenue growth through 2030, with net income margins expanding toward 31%, arriving at a mid-case target of around $107 per share, implying roughly 22% total return at an annualized IRR of around 5% per year.

Worth being direct: a 5% annualized price return combined with a roughly 3% dividend yield puts total return in the 7% to 8% range annually under the mid-case scenario. That is not a number that excites growth investors, but it is exactly what long-term holders of defensive compounders expect and value.

The Street’s mean target of around $90 implies modest near-term upside, and the stock’s 27% year-to-date run has stretched the valuation to roughly 27 times forward earnings, toward the higher end of KO’s historical range.

Should You Buy Coca-Cola Stock?

The bull case is that KO is a rare business that grows reliably in virtually any economic environment, compounds its dividend without interruption, and has demonstrated genuine operating momentum in 2026 through both volume recovery and pricing discipline.

Five consecutive earnings beats, a new CEO executing well, and the Zero Sugar tailwind all suggest the fundamental business is in better shape than it was two years ago.

The bear case is valuation. At roughly 27 times forward earnings after a 27% year-to-date run, much of the good news is priced in. Revenue growth of around 3% is not the kind of top-line expansion that typically justifies a premium multiple over the long run, and currency headwinds remain a persistent drag on reported results given KO’s global footprint.

Low-income consumers in several key markets are also under pressure, which could weigh on volume in the back half of the year.

Coca-Cola is not a stock you buy expecting to double your money. It is a stock you own because it grows reliably, pays and raises its dividend every year, and holds up when other parts of a portfolio do not.

Investors comfortable with that tradeoff will find a reasonable long-term hold here, even if near-term upside from current prices is limited.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!