Coca-Cola (NYSE:KO) posted a strong third quarter on Tuesday, Oct. 27. Organic revenue, which excludes foreign exchange and the impact of acquisitions and divestitures, grew 7% year over year.

And comparable earnings per share, the company's non-GAAP (adjusted) profit measure, gained 11% to $0.91. Management raised its full-year outlook, too.

Shares fell about 2% that day anyway. As I write this, they're around $92 -- about 4% under the record close of $95.34 on Oct. 22, and still up about 32% in 2026.

I'd say the quarter was good, and most of its growth came from selling more drinks. But some of this year's earnings growth won't carry into 2027, and the share price already bakes in a lot of good news. At this price, I wouldn't buy yet.

Volume is driving the growth

Showing how much the company has turned around this year, Coca-Cola's unit case volume (a measure of finished drinks sold in its system) rose 5% year over year in the third quarter of 2026, matching the second quarter's rate and beating the first quarter's 3%. That's a big shift from 2025, when full-year volume was flat. The gains were broad, too, led by India, China, Mexico, and Brazil.

Pricing, though, is contributing less. Price/mix (the combined impact of price increases and changes in what people buy) climbed 1% in the third quarter, down from 2% in each of the first two quarters.

On the earnings call, chief financial officer John Murphy said pricing actions added four points, but negative mix cost three. Some of that mix pressure comes from volume rising fastest in developing markets, where drinks can sell for less.

I'd call this healthy growth. Selling more drinks is arguably a sturdier way to grow than relying on price increases each year.

Granted, North America's volume was flat in the third quarter. And a year earlier, global volume rose just 1%. That means this year's gains are being compared with a weak year.

Not all this year's earnings growth will repeat

Management now expects comparable earnings per share to rise at least 11% in 2026 from $3.00 in 2025, up from its previous target of 9% to 10%. Its free cash flow target climbed too, to at least $13 billion for the year, after a July target of around $12.4 billion.

Profitability improved along the way. Coca-Cola's comparable operating margin widened to 32.9%, up from 31.9% in the year-ago quarter, but currency helped there too.

However, a good part of that earnings growth comes from currency. Around 3 points of the 11% is expected to come from favorable exchange rates. Leaving out currency and the impact of acquisitions and divestitures, management expects underlying earnings-per-share growth of at least 9%.

A lower tax rate is also helping. Coca-Cola now expects an underlying tax rate of 19.7% for 2026, under the 20.9% it planned on in February.

Murphy said the rate "reflects certain benefits in the current year that we do not expect to repeat going forward."

Next year's starting point looks tougher. The pending sale of the company's bottling operations in Africa is expected to be around a 2-point headwind for comparable earnings per share in 2027. And at current exchange rates, management sees currency becoming a small drag. Even if the core business keeps growing earnings at a high-single-digit rate, the reported number might look noticeably slower next year.

Is the stock worth its price?

In the last four quarters, Coca-Cola's comparable earnings per share came to about $3.32. Against that, the stock costs around 28 times its adjusted earnings. Based on the earnings expected for 2027, its price-to-earnings ratio is about 26. When 2026 started, shares cost around 23 times adjusted earnings.

Yes, Coca-Cola has earned a premium. Its volume is rising again, and it's a dependable dividend stock that approved its 64th consecutive annual dividend hike in February. But 28 times earnings is a premium price for a company whose underlying earnings per share are expected to rise at least 9% this year -- especially given a slower-looking 2027 ahead.

Would I buy the stock after this report? Not at this price. I'd like to see shares nearer to $80, or around 24 times the earnings management now expects for 2026, before putting fresh money in.

Sure, the stock might never get there. But given growth like this, I don't mind waiting a while for a better price.

Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.