Coca-Cola stock surged 5% to an all-time high on local time May 28 after the beverage giant reported second-quarter earnings that exceeded market expectations. The company posted revenue of $13.37 billion, up 7% year-over-year, with adjusted earnings per share of $0.97 beating analyst forecasts. The rally drew renewed attention to Warren Buffett's 38-year holding in the stock, underscoring his long-term investment philosophy amid a broader market rotation from volatile technology stocks to stable consumer staples.
Coca-Cola Reports Q2 Revenue of $13.37 Billion, Beating Estimates
According to Coca-Cola's second-quarter results announced on local time May 28, revenue reached $13.37 billion, a 7% increase compared to the same period last year. Organic revenue, excluding currency effects and mergers and acquisitions, rose 6%. Operating profit increased 9%, and earnings per share (EPS) jumped 16% to $1.03. Adjusted EPS, excluding one-time items, came in at $0.97, surpassing market estimates.
The World Cup contributed to the strong performance, according to analysis. Newly introduced hydration breaks during matches provided Coca-Cola with additional advertising opportunities. Chief Financial Officer John Murphy told Reuters, "I don't know if this hydration break will become a permanent feature of soccer, but we had no complaints about it during this World Cup." The Powerade brand reportedly benefited particularly from this development.
On local time May 28, Coca-Cola shares closed at $88.27 on the New York Stock Exchange, up 5.0% from the previous trading day. The stock briefly exceeded $90 during intraday trading, setting a new all-time high.
Market observers attributed the stock surge to investors rotating capital from technology stocks—facing cost pressures from AI investment expansion and overvaluation concerns—into stable consumer staples with consistent earnings and cash generation capabilities. Coca-Cola is characterized by lower returns than tech stocks but with significantly less volatility. In 2022, when the S&P 500 index fell approximately 20%, Coca-Cola shares actually rose 7%.
British bank Barclays described Coca-Cola as having "flexibly responded to changing macroeconomic environments over the past several decades" and called it "a true defensive stock representing the essential consumer goods business sector."
Warren Buffett Holds Coca-Cola Shares for 38 Years, 64-Year Dividend Streak
The stock's performance renewed focus on Warren Buffett's long-term investment philosophy. Buffett began purchasing Coca-Cola shares in 1988 following a market crash and invested approximately $1.3 billion through 1994 to acquire 400 million shares. He has reportedly neither bought nor sold a single additional share over the subsequent 30-plus years. This strategy reflects his emphasis on enduring brand strength and consistent cash generation ability over short-term performance or economic cycles.
Dividend expansion supports the investment's appeal. Coca-Cola's dividend has increased for 64 consecutive years, with total dividends paid to shareholders over the past 15 years reaching $101.9 billion. The company raised its quarterly dividend from $0.51 to $0.53 earlier this year, an increase of approximately 4%.
FAQ
What did Coca-Cola report for Q2 earnings on local time May 28?
Coca-Cola reported second-quarter revenue of $13.37 billion, up 7% year-over-year, with adjusted earnings per share of $0.97 beating market estimates. Operating profit increased 9%, and EPS rose 16% to $1.03.
How long has Warren Buffett held Coca-Cola shares?
Warren Buffett began purchasing Coca-Cola shares in 1988 and invested approximately $1.3 billion through 1994 to acquire 400 million shares. He has held the position for 38 years without buying or selling additional shares.
How many consecutive years has Coca-Cola increased its dividend?
Coca-Cola has increased its dividend for 64 consecutive years. The company raised its quarterly dividend from $0.51 to $0.53 this year, representing an approximately 4% increase.
