The Coca-Cola Company stock research
FY2026 Q1
The Coca-Cola (KO) Gross Margin — Quarter Ended Apr 3, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved sequentially and was slightly higher than the same quarter last year.
Gross margin takeaway
Quarter ended Apr 3, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved sequentially and was slightly higher than the same quarter last year.
- The strongest observable margin driver is the combination of higher revenue and lower cost of revenue relative to the prior quarter, which directly lifted gross profit and gross margin. Compared to a year ago, revenue growth outpaced the increase in cost of revenue, supporting a modest margin improvement.
- Gross margin improved from the immediately preceding quarter and was slightly higher than the same quarter one year earlier. Revenue and gross profit were higher in both comparisons, while cost of revenue was lower sequentially but higher year over year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.0%
Gross profit
$7.9B
Revenue
$12.5B
Cost of revenue
$4.6B
Quarter-over-quarter change
+2.9 pts
Year-over-year change
+0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 27, 2025 | $12.5B | $7.8B | $4.7B | 62.4% |
| Sep 26, 2025 | $12.5B | $7.7B | $4.8B | 61.5% |
| Dec 31, 2025 | $11.8B | $7.1B | $4.7B | 60.0% |
| Apr 3, 2026 | $12.5B | $7.9B | $4.6B | 63.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+2.9 pts
Year-over-year change
Mar 28, 2025
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the combination of higher revenue and lower cost of revenue relative to the prior quarter, which directly lifted gross profit and gross margin. Compared to a year ago, revenue growth outpaced the increase in cost of revenue, supporting a modest margin improvement.
Gross margin improved from the immediately preceding quarter and was slightly higher than the same quarter one year earlier. Revenue and gross profit were higher in both comparisons, while cost of revenue was lower sequentially but higher year over year.
Monitor the trajectory of cost of revenue, which declined from the prior quarter but increased from a year ago, as its movement relative to revenue will influence future gross margin trends.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| The Coca-Cola Company (KO) | 63.0% |