Coca-Cola Reports Mixed Results, Shares Dip in Premarket Trading
Coca-Cola (KO) on Tuesday reported mixed quarterly results, although demand for its drinks in North America and Latin America is beginning to show signs of improvement. The company’s fourth-quarter net income attributable to shareholders rose to $2.27 billion, or 53 cents per share, compared to $2.2 billion, or 51 cents per share, a year earlier.
Looking ahead to 2026, Coca-Cola is projecting organic revenue growth of 4% to 5% and comparable earnings per share growth of 7% to 8% for the full year. Despite the optimistic outlook, shares of Coca-Cola fell roughly 3% in premarket trading following the release of the earnings report.
Here’s a breakdown of the company’s financial performance for the period ended December 31, compared to analysts’ expectations, as surveyed by LSEG:
- Adjusted earnings per share: 58 cents vs. 56 cents expected
- Adjusted revenue: $11.82 billion vs. $12.03 billion expected
Excluding one-time items, Coke earned 58 cents per share. Net sales rose 2% to $11.82 billion, with organic revenue – which excludes the impact of acquisitions, divestitures, and currency fluctuations – increasing 5% in the quarter.
Unit case volume, a key metric reflecting demand excluding pricing and currency effects, rose 1% in the quarter, marking the second consecutive quarter of growth for the beverage giant.
Consumer Spending and Brand Performance
Like its competitor PepsiCo, Coca-Cola has observed a softening in demand as consumers become more budget-conscious and reduce spending on non-essential items like dining out. Overall volume for 2025 remained unchanged from the prior year, reflecting these broader economic pressures.
However, certain premium brands within Coca-Cola’s portfolio have demonstrated resilience. Smartwater and Fairlife continue to attract consumers willing to pay a premium for higher-quality beverages.
Two key geographic markets are showing particular promise. Coca-Cola’s volume in North America increased 1%, while volume in Latin America rose 2%, signaling a potential recovery in these regions.
Segment Performance
Globally, Coca-Cola’s water, sports, coffee, and tea division outperformed other segments, indicating a growing consumer preference for healthier beverage options. This division experienced a 3% increase in volume, driven by strong demand for brands like Smartwater and Bodyarmor.
The company’s sparkling soft drinks business reported flat volume. Volume for the Coca-Cola brand itself increased 1% in the quarter, while Coke Zero Sugar saw a more substantial 13% volume increase.
Volume in the juice, value-added dairy, and plant-based beverages division declined 3%. While demand for Fairlife remained strong, the decrease was partially offset by the sale of Coke’s finished product operations in Nigeria to one of its bottlers.
As of Monday’s close, shares of Coca-Cola had risen approximately 22% over the past year, bringing the company’s market value to around $335 billion.
