Global beverage giant Coca-Cola reported stronger-than-expected quarterly results, driven by steady consumer demand and growth across most of its product lines, even as inflation and geopolitical tensions continue to weigh on parts of the market.

The company posted adjusted earnings per share of 86 cents, exceeding analyst estimates of 81 cents, while revenue reached $12.47 billion, also above expectations. Net income rose to $3.92 billion, or 91 cents per share, from $3.33 billion a year earlier.

Buoyed by the performance, Coca-Cola raised its full-year profit outlook, now expecting comparable earnings per share to grow by 8 percent to 9 percent, slightly higher than its earlier forecast. It maintained its projection for organic revenue growth at 4 percent to 5 percent.

Chief executive Henrique Braun acknowledged uneven conditions across markets, pointing to inflation and global uncertainty as key challenges.

“During the quarter, the external environment differed greatly across our markets,” Braun said. “While many consumers remained resilient, others are under pressure due to persistent inflation, greater macroeconomic uncertainty and volatilities driven by the conflict in the Middle East.”

The water, sports, coffee, and tea segment led global growth, posting a 5 percent increase in volume, driven largely by tea and bottled water. The sparkling soft drinks division grew by 2 percent, supported by a 13 percent surge in Coca-Cola Zero Sugar.

In contrast, the juice, dairy, and plant-based segment declined by 1 percent, partly due to the impact of divestments, despite gains from select dairy brands.

Chief financial officer John Murphy said the company expects to manage cost pressures for now, even as commodity prices fluctuate.

“Notwithstanding volatility in certain commodities, like tea and coffee, we believe the overall impact on our cost basket is manageable at this time,” Murphy said.