KO · 10-Q · 2026Q4 · Full report
Operating Expense Trends
COCA COLA CO · 2026-10-28 · Importance 29 · Surprise 22 · In source text
Selling, general and administrative expenses rose 10% to $3,975 million in the three months ended October 2, 2026, from $3,618 million, primarily due to increased marketing spending and annual incentive expense timing. For the nine months, these expenses increased 8% to $11,167 million from $10,322 million, mainly because of higher marketing spending, partly offset by lower annual incentive expense; foreign currency fluctuations added 2%. Advertising expense increased to $1,777 million from $1,523 million for the quarter and to $4,719 million from $3,940 million for the nine months.
Key facts
- Selling, general and administrative expenses for the three months ended October 2, 2026 were $3,975 million, up $357 million or 10% from $3,618 million, primarily due to increased marketing spending and annual incentive expense timing. source
- Selling, general and administrative expenses for the nine months ended October 2, 2026 were $11,167 million, up $845 million or 8% from $10,322 million; increased marketing spending was partly offset by lower annual incentive expense. source
- Advertising expenses were $1,777 million for the three months ended October 2, 2026, compared with $1,523 million in the prior-year quarter. source
- Advertising expenses were $4,719 million for the nine months ended October 2, 2026, compared with $3,940 million in the prior-year period. source
- The Company recorded other operating charges of $10 million for the three months ended October 2, 2026: $6 million for North America modernization initiatives and $4 million for BodyArmor acquisition noncompete amortization. source
- The Company recorded other operating charges of $54 million for the nine months ended October 2, 2026, including $19 million for an indemnification agreement, $16 million for North America modernization, $11 million for BodyArmor noncompete amortization, and $8 million for tax litigation. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -6.3% | Selling, general and administrative expenses for the nine months ended October 2, 2026 were $11,167 million, up $845 million or 8% from… |
| operating_income | negative | realized | -5.8% | Advertising expenses were $4,719 million for the nine months ended October 2, 2026, compared with $3,940 million in the prior-year period. |