Coca-Cola’s stock has quietly climbed more than 26% this year, a move that has pushed Warren Buffett’s Berkshire Hathaway holding to a staggering $35 billion. The beverage giant’s shares closed July 28 at $88.27, marking a remarkable rebound from a low near $67.50 in early 2026.
Strong Earnings Fuel the Rally
The surge follows Coca-Cola’s solid quarterly performance. The company posted second-quarter earnings per share of $0.97, beating analyst expectations of $0.93. Revenues also topped forecasts, reaching $13.4 billion. Investors responded swiftly, driving the stock up 7.39% just in the past week after a period of consolidation from March through mid-July.
Why Buffett Remains Confident
Berkshire Hathaway owns 400 million Coca-Cola shares, about 9.3% of the company. Buffett’s confidence appears tied to consistent dividends and an optimistic earnings outlook. Coca-Cola recently declared a quarterly dividend of $0.53 per share, payable in October, supported by raised guidance for 2026 revenue growth, now expected near 5%, and earnings growth between 9% and 10%.
Wall Street’s sentiment mirrors Buffett’s optimism. Seventeen analysts have labeled Coca-Cola a ‘Strong Buy’ for the coming year, with price targets climbing. Bank of America and Evercore ISI analysts increased their 12-month price targets to $100, signaling potential upside of over 13% from current levels.
This material is for informational purposes and does not constitute financial advice.
