Coca-Cola experienced stronger demand in the U.S. market during the fourth quarter, even after implementing price hikes. The Atlanta-based beverage giant reported on Tuesday that global case volume grew by 1% in the October–December period, driven primarily by markets in the United States, Japan, and Brazil. North American case volume also increased by 1%, reversing previous quarters of flat or declining sales.
The company noted it raised prices by 4% in North America and 1% globally during the quarter. Coca-Cola Zero Sugar performed strongly, with sales rising 13% year-over-year in the October–December period. Demand also strengthened for water, sports drinks, coffee, and tea products, while juice and dairy categories remained weak.
Last fall, the company observed a divergence in consumer behavior across North America and Europe: higher-income shoppers showed greater preference for premium brands such as Smartwater, Topo Chico, and Fairlife, while middle- and lower-income consumers faced more financial pressure.
In December, Coca-Cola introduced 7.5-ounce mini-cans in North American convenience stores for the first time, aiming to make soft drinks more affordable.
Revenue for the October–December quarter increased 2% to $11.8 billion, falling short of Wall Street expectations. Analysts surveyed by FactSet had on average forecast quarterly revenue of $12.05 billion.
Net income rose 3% to $2.3 billion. Excluding one-time items, earnings per share came in at 58 cents, beating Wall Street estimates by 2 cents.
Coca-Cola projected organic revenue growth of 4% to 5% for 2026. The company reported 5% organic revenue growth last year, and analysts had anticipated a similar pace for the current year.
In premarket trading, the company’s shares fell nearly 4%.
In December, Coca-Cola announced that Henrique Braun, the current Chief Operating Officer and a 30-year company veteran, will become Chief Executive Officer on March 31. Current Chairman and CEO James Quincey will transition to the role of Executive Chairman.