Coca-Cola soars in 2026 but struggles with its troubled coffee division
Coca-Cola has seen a strong start to 2026, with its core business thriving and shares reaching new highs. The company’s stock climbed 26% from its September low after Wells Fargo gave it a bullish rating. Yet challenges remain, particularly with its struggling coffee division, Costa Coffee.
The company’s core drinks business grew by roughly 13% in 2025, outperforming mid-term averages. Investors have responded positively, pushing shares to a 52-week high. Coca-Cola’s ability to raise prices without hurting sales volumes has reinforced confidence in its pricing power.
At the beginning of 2026, Goldman Sachs added Coca-Cola to its 'Tactical Ideas' list. The bank highlighted the company’s defensive earnings, strong cash flow, and potential for further growth. Wells Fargo also backed the stock, citing stability in uncertain markets and opportunities for cost savings.
However, Coca-Cola’s coffee subsidiary, Costa Coffee, continues to weigh on performance. Operating losses at the UK-based chain more than doubled in the latest reporting period. Talks with private equity firm TDR Capital over a possible sale have stalled, leaving the division’s future unclear.
The company’s next earnings report will be closely watched. Investors want updates on 2026 guidance, Costa Coffee’s strategy, and margin trends. Short-term share performance may hinge on how well Coca-Cola balances its strong core business with the challenges in coffee.
Coca-Cola’s stock has benefited from strong demand and analyst support, but its coffee struggles remain unresolved. The upcoming earnings report will provide clarity on Costa Coffee’s direction and the company’s broader financial outlook. For now, the core business continues to drive growth while the coffee division presents ongoing challenges.
