Coca-Cola (KO) is serving up the defensive characteristics of its business model to investors weathering a brutal trade war.

Shares of the beverage giant rose nearly 1% in premarket trading on Tuesday as it beat on first quarter earnings and didn’t issue a warning with its full-year guidance. The company said in a statement it expects the impact of the trade war to be “manageable” this year.

That isn’t to say consumers aren’t showing signs of being under pressure, as large companies begin to raise prices to compensate for their higher costs of doing business.

Read more about Coca-Cola’s stock moves and today’s market action.

NYSE – Nasdaq Real Time Price USD

As of 11:03:17 AM EDT. Market Open.

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In Coke’s North America business, for example, unit case volumes fell 3% as it raised prices by 8%. It was the second-largest price increase amongst Coke’s divisions, behind a 16% hike in Latin America.

“Volume was impacted by weakening consumer sentiment, particularly amongst hispanic consumers,” Coca-Cola CEO James Quincey said on the earnings call.

“Organic fundamentals remain strong globally but is still subject to global macro pressures, and we do call out some weakness in Coca-Cola in the US late in the quarter. However, we believe KO is well positioned to manage through the global volatility and has the proper levers to deliver targets for the year,” RBC Capital Markets analyst Nik Modi wrote ahead of the results.

  • Net sales: down slightly year over year to $11.21 billion vs. estimates for $11.14 billion

  • Organic sales growth: +6% year over year vs. estimates for +5.2%

  • Core earnings per share: +1% year over year to $0.73 vs. estimates for $0.72

  • Key comment: Says tariff impact is “manageable”

  • Organic sales growth: +5 to +6% vs. estimates for +5.63% (previous guidance: +5% to +6%)

  • Core EPS: +2% to +3% to $2.96 vs. estimates for $2.96 (previous guidance: +2% to +3%/$2.94 to $2.97)

  • Programming note: Coca-Cola chairman and CEO James Quincey will be live on Yahoo Finance today at 10:30 a.m. ET. You can tune in here.

Brian Sozzi is Yahoo Finance’s Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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