The Coca-Cola Company reported stronger demand in the fourth quarter of 2025 despite higher pricing, pointing to a modest pickup in North America after several softer quarters. Global unit case volume rose 1% for the quarter, with gains led by markets including the U.S., Japan, and Brazil, according to reporting and the company’s earnings materials.
In North America, Coca-Cola said it increased prices during the quarter and still saw improving trends in several categories, including water, sports drinks, coffee, and tea. The company also highlighted continued momentum in Coca-Cola Zero Sugar, which posted a double-digit increase in the period.
Executives have also framed the demand picture as increasingly split by income level, with higher-income consumers continuing to buy premium brands while more price-sensitive shoppers show greater strain in certain regions. As part of its affordability push, Coca-Cola has expanded 7.5-ounce mini cans at North American convenience stores.
Earnings Beat, But Revenue Came In Light
Coca-Cola’s quarterly revenue rose 2% to $11.8 billion, but that figure was below the $12.05 billion analysts expected, based on FactSet estimates cited in coverage.
Profitability metrics told a more complicated story. The company said GAAP EPS for the quarter increased 4% to $0.53, while comparable (non-GAAP) EPS rose 6% to $0.58, topping consensus expectations in market coverage.
Operating results were weighed down by a major one-time item: a $960 million non-cash impairment charge tied to the BODYARMOR trademark, which drove a steep year-over-year decline in reported operating income for the quarter, even as comparable measures improved.
For the full year, Coca-Cola reported net revenues of $47.9 billion (up 2%) and organic revenue growth of 5%, while full-year GAAP EPS increased to $3.04 and comparable EPS came in at $3.00.
2026 Guidance Signals Moderate Growth
Investors appeared more focused on what comes next. Coca-Cola’s outlook calls for 2026 organic revenue growth of 4% to 5%, alongside comparable EPS growth of 7% to 8% versus $3.00 in 2025. The company also forecast free cash flow of about $12.2 billion, based on projected operating cash flow of about $14.4 billion and capital expenditures of about $2.2 billion.
The guidance includes expected tailwinds and headwinds tied to currencies and portfolio moves. Coca-Cola said it anticipates a 1% currency tailwind for comparable net revenues, but also a 4% headwind from acquisitions and divestitures, assuming a pending sale of Coca-Cola Beverages Africa (CCBA) closes in the second half of 2026, subject to regulatory approvals.
Market reaction reflected that caution: shares fell roughly 4% in premarket trading following the release, as investors weighed the softer revenue print and the company’s growth range.
New CEO Incoming as Consumer Preferences Shift
The earnings update arrives ahead of a leadership transition. Coca-Cola has said Henrique Braun, currently the company’s chief operating officer, will become CEO on March 31, 2026, while James Quincey is set to move into the role of executive chairman.
On the earnings call, Braun emphasized the need to accelerate product development and execution as consumers continue shifting toward lower-sugar options and as the broader food-and-beverage industry monitors potential impacts from weight-loss drugs and changing consumption habits.
Coca-Cola also reiterated its longer-term operational priorities to support growth and efficiency, including continued investment in marketing and organizational changes to improve digital capabilities and drive innovation.
