KO vs PEP: Coke's Upside vs Pepsi's Sturdy Floor

The Coca-Cola Company (KO) and PepsiCo Inc. (PEP) have reported their second-quarter 2026 results, with KO shares up 26.76% year to date while PEP is at -8.20%. Over five years, the gap grows: 90.01% for KO against -1.31% for PEP.

Coke's quarter ran on volume, with global unit case volume rising 5%, and Coca-Cola Zero Sugar jumping 16%, proof that the no-calorie shift is attracting drinkers. Management raised comparable EPS growth guidance to 9-10%, with CEO Henrique Braun saying Coke 'leveraged our powerful brands and system to gain value share.'

PepsiCo's quarter split by geography, with Latin America Foods growing 15% while PepsiCo Foods North America revenue fell 2% on lower effective pricing. Chairman and CEO Ramon Laguarta was frank: 'The consumer is worse than what we had anticipated and driven mainly by gas prices.'

Analysts have made their predictions for both companies, with KO's base case reaching $140.09 by 2031, a 60.22% gain, the bull case hitting $175.09, up 100.25%, and the bear case at $101.27, returning just 15.82%. PEP's base case is $199.53, a 55.02% gain, with a bull case of $216.26, or 68.02%, and a surprise bear case: $164.98, up 28.18%.