By Evie Liu

Coca-Cola is set to report fourth-quarter earnings on Tuesday before the market opens. Investors will closely watch whether the soda giant -- one of the market's most reliable defensive stocks -- could keep delivering steady growth as it navigates inflation, tariffs, and evolving consumer tastes away from sugary sodas toward zero-sugar and functional drinks.

For the quarter ended late December, Wall Street analysts polled by FactSet forecast earnings of about $0.56 a share, up by one cent from a year ago. Net revenue is expected to increase 5.7% from the year-ago period to $12.05 billion.

The forecasts reflect a continuation of third-quarter strength, when Coca-Cola reported 5% in net revenue growth and 6% adjusted earnings growth. Revenue growth was broad-based geographically, but mainly came from higher pricing rather than big volume growth. Zero-sugar drinks were a standout, with Coca-Cola Zero Sugar posting double-digit volume growth.

For the full year of 2025, Coca-Cola expects organic revenue growth of 5% to 6%, but noted a potential 1% to 2% currency headwind and approximate 1% negative impact from acquisitions, divestitures and structural changes. Comparable earnings are expected to grow about 3% after accounting for currency headwinds.

Investors have rewarded that steadiness. Coca-Cola shares are up roughly 20.8% over the past 12 months, outperforming the broader market and many other consumer-staples peers. The stock has benefited from its dependable cash flows, global scale, and dividend appeal at a time when investors have been rotating toward lower-risk names.

Management continues to promote product innovation, particularly around zero-sugar sodas and other faster-growing categories. Coca-Cola recently expanded its flavored soda lineup, launching Coca-Cola Cherry Float and bringing back Diet Coke Cherry in the U.S. and Canada. Meanwhile, the company announced plans to discontinue its frozen drink products.

To keep operational costs tight, Coca-Cola is planning a broader restructuring, including layoffs that began with about 75 positions at its corporate headquarters. But marketing investment remains elevated as the company works to keep its brands visible and relevant. Internationally, Coca-Cola is also reshaping its bottling network through refranchising and partnerships.

Henrique Braun, currently Coca-Cola's chief operating officer, will become the next CEO effective March 31, succeeding James Quincey after nine years in the role. Braun has been with the company for decades and has held leadership positions across the globe, including international markets like Latin America and China -- key regions of growth for the company.

As for 2026, Coca-Cola hasn't yet issued formal guidance. Full financial targets for 2026 are expected to be released alongside earnings.

Write to Evie Liu at evie.liu@barrons.com

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February 09, 2026 16:25 ET (21:25 GMT)

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