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Coca-Cola Sips on Profits While Inflation Sweats

BY | ETF Database
8:09 am ET 10/29/26 | 26 VIEWS
  • Related Symbols
  • XLP
When the average investor thinks about the consumer staples sector, they likely assume it’s full of companies struggling to post compelling earnings results amid the burden of inflation.Key Takeaways: Coca-Cola reported its Q3 2026 earnings this week, largely beating expectations. Despite the consumer staples sector being a tough sell in North America, Coke posted strong results and updated its full-year guidance, boosted by international profits. The State Street Consumer Staples Select Sector SPDR ETF (XLP A) can help investors gain targeted access to key consumer staples companies, such as Coca-Cola, Costco, and Walmart. However, not all consumer staples have been hit by inflation with equal force. For instance, Coca-Cola reported its Q3 2026 earnings results earlier this week. These results illuminated how the company is handling inflation and looking to grow in the months ahead. To start, Coca-Cola’s quarterly report came in ahead of what analysts were expecting. Adjusted earnings-per-share (EPS) were 91 cents for the quarter. The company reported revenue of $13.4 billion. See More: AI’s Unlikely Ally: How Energy Powers the Digital RevolutionStronger Full-Year OutlookLooking ahead, Coca-Cola is also more optimistic about the full year. Coke is now predicting EPS growth of at least 11%. That’s higher than the last forecast of 9-10%. Meanwhile, full-year revenue is projected to rise by “at least” 5%. That’s a bit higher than the last outlook’s prediction of about 5%. Some may be curious how Coca-Cola has been able to perform so well, despite the U.S. economy still tangling with inflation. Part of Coke’s success is tied to international markets, with the company seeing noticeable profits in India, China, Brazil, and Mexico. “While the global operating environment remains uneven, we are encouraged by the momentum across our business and believe in our ability to deliver more for more markets and more for more brands,” noted Henrique Braun, Coca-Cola CEO, on the Q3 earnings call. “I’m energized by the progress we’re making across the Coca-Cola system. We are learning as we go, continuing to raise the bar, and finding new ways to create value.” See More: New Earnings Show the Healthcare Sector Has a PulseTap Into Coke's Earnings Momentum With XLPCoke’s encouraging earnings report may give folks more confidence about engaging with the consumer staples sector. For those who want to give the sector a shot, the State Street Consumer Staples Select Sector SPDR ETF (XLP A) may offer considerable appeal. After all, Coca-Cola is one of the top holdings within XLP. It represents about 7% of portfolio weight as of October 28, 2026. Other top holdings include Walmart and Costco, which have also posted impressive earnings reports as of late. Leaning into the top-performing staples can help advisors and investors harness the advantages of the sector while potentially mitigating the impact inflation has had on consumer spending. For more news, information, and analysis, visit our Sector Investing Content Hub.

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