Coca-Cola has recently released its quarterly financial results, showcasing a mixed performance despite notable improvements in demand across North America and Latin America. Looking forward to 2026, the beverage company is optimistic, projecting organic revenue growth between 4% to 5% and comparable earnings per share growth of 7% to 8% for the upcoming year.
However, the news was met with a decline in shares, which fell approximately 3% in premarket trading. In its report for the period ending December 31, Coca-Cola’s adjusted earnings per share reached 58 cents, outperforming the anticipated 56 cents. Conversely, adjusted revenue stood at $11.82 billion, slightly below the Wall Street expectation of $12.03 billion.
Coca-Cola’s fourth-quarter net income attributable to shareholders reached $2.27 billion, equating to 53 cents per share, an increase from $2.2 billion, or 51 cents per share, a year prior. When excluding transaction gains and other one-time items, the earnings matched expectations at 58 cents per share, while net sales experienced a 2% rise to $11.82 billion. Organic revenue, which eliminates the effects of acquisitions, divestitures, and currency fluctuations, saw a 5% increase during the quarter. Additionally, unit case volume grew by 1%, marking consecutive quarters of growth for the company.
Coca-Cola has faced challenges, similar to its competitor PepsiCo, as budget-conscious consumers have been cutting back on grocery spending and dining out. Overall, the volume for Coca-Cola remained unchanged for 2025 compared to the previous year. Despite this, several segments have shown resilience, particularly premium beverages such as Smartwater and Fairlife, indicating that consumers are still inclined to pay more for perceived higher-quality options.
Positive developments were noted in two crucial markets for Coca-Cola, with volume growth of 1% in North America and 2% in Latin America. The company’s water, sports, coffee, and tea segment outperformed its overall portfolio, driven by a 3% increase in volume attributed to heightened interest in products like Smartwater and Bodyarmor. While the sparkling soft drinks segment reported stable volume, the flagship Coca-Cola brand achieved a 1% increase, with Coke Zero Sugar volumes surging by 13%.
On the flip side, Coca-Cola’s juice, value-added dairy, and plant-based beverages division experienced a decline in volume by 3%. This dip in demand was partially offset by the increased popularity of Fairlife but was also influenced by the sale of Coca-Cola’s finished product operations in Nigeria to a bottling partner.
Despite the mixed results, Coca-Cola shares have seen a significant increase, climbing approximately 22% over the past year and boosting the company’s market capitalization to around $335 billion. As Coca-Cola navigates these challenges and opportunities, it remains focused on capitalizing on its growth prospects in various beverage categories.
