Coca-Cola Reports Mixed Q4 2025 Results, Shares Decline Despite Positive Demand Signals

Coca-Cola reported mixed financial results for the fourth quarter, which concluded on December 31, 2025. The company observed initial signs of improving demand for its beverages in North America and Latin America.

Looking ahead to 2026, Coca-Cola forecasts organic revenue growth of 4% to 5% and comparable earnings per share growth of 7% to 8% for the full year. Following the announcement, Coca-Cola's shares experienced an approximate 3% decline in premarket trading.

Coca-Cola's fourth quarter saw adjusted earnings per share surpass analyst expectations, though adjusted revenue fell short. Despite this, the company reported initial improvements in demand in key regions and projects steady growth for 2026.

Fourth Quarter 2025 Performance Highlights:

• Adjusted earnings per share (EPS) reached 58 cents, exceeding the analyst expectation of 56 cents.
• Adjusted revenue totaled $11.82 billion, falling short of the $12.03 billion expected by analysts.
• Net income attributable to shareholders was $2.27 billion, or 53 cents per share, an increase from $2.2 billion, or 51 cents per share, reported a year prior.
• Excluding specific transaction gains and one-time items, EPS stood at 58 cents.
• Net sales increased by 2% to $11.82 billion.
• Organic revenue, which excludes the impact of acquisitions, divestitures, and currency fluctuations, grew by 5% during the quarter.
• Unit case volume rose by 1%, marking the second consecutive quarter of growth for the company.

Market Dynamics and Segment Outcomes:

Coca-Cola has previously experienced reduced demand due to budget-conscious consumers. However, premium brands such as Smartwater and Fairlife have shown strong performance, indicating continued consumer willingness to invest in higher-priced options.

Volume in North America increased by 1%, and in Latin America, it rose by 2%, signaling improvements in these key markets. Globally, the water, sports, coffee, and tea segment demonstrated stronger performance compared to the rest of the portfolio, achieving 3% volume growth. This growth was attributed to higher demand for brands like Smartwater and Bodyarmor, suggesting a consumer preference for products perceived as healthier.

The sparkling soft drinks business maintained flat volume. The namesake Coca-Cola soda saw a 1% increase in volume, while Coke Zero Sugar's volume climbed by 13%.

Conversely, the juice, value-added dairy, and plant-based beverages division reported a 3% volume decrease. This decline was primarily due to the sale of Coca-Cola's finished product operations in Nigeria to one of its bottlers, which offset increased demand for Fairlife.

Prior to the announcement, Coca-Cola shares had risen approximately 22% over the preceding year, reaching a market valuation of about $335 billion.