Coca-Cola anticipates organic revenue growth of 4% to 5% for 2026. Similar to competitor PepsiCo, demand for Coca-Cola beverages has softened as budget-conscious consumers seek to reduce spending on groceries. The company's water, sports drinks, coffee, and tea categories outperformed other product lines.
On Tuesday, Coca-Cola reported quarterly revenue that fell short of expectations, marking the first time in five years it missed Wall Street forecasts. However, demand for its beverages in North American and Latin American markets has begun showing signs of improvement.
Looking ahead to 2026, the company expects full-year organic revenue growth of 4% to 5% and comparable earnings per share growth of 7% to 8%.
Here are the results for the quarter ended December 31, compared with analyst expectations from an LSEG survey:
Adjusted earnings per share: 58 cents vs. expected 56 cents Adjusted revenue: $11.82 billion vs. expected $12.03 billion
The beverage giant reported fourth-quarter net income attributable to shareholders of $2.27 billion, or 53 cents per share, up from $2.2 billion, or 51 cents per share, a year earlier. Excluding transaction gains and other one-time items, Coca-Cola earned 58 cents per share.
Net sales increased 2% to $11.82 billion. Organic revenue, which excludes the impact of acquisitions, divestitures, and currency exchange, grew 5% during the quarter. Unit case volume rose 1% for the second consecutive quarter of growth. This metric excludes pricing and currency effects to reflect true demand.
Like rival PepsiCo, Coca-Cola has experienced a decline in beverage demand as consumers tighten budgets and reduce dining out. The company's full-year 2025 volume remained flat compared to the previous year.
Some bright spots emerged, such as strong performance for brands like Smartwater and Fairlife, indicating consumers remain willing to pay premium prices for higher-end beverages.
Coca-Cola's two largest markets showed signs of recovery:
North American volume grew 1% Latin American volume grew 2%
Globally, Coca-Cola's water, sports drinks, coffee, and tea businesses performed best, showing consumers' willingness to pay for beverages they perceive as healthier. This segment saw volume growth of 3%, benefiting from increased demand for brands including Smartwater and Bodyarmor.
The company's sparkling soft drinks volume remained flat. Volume for flagship Coca-Cola grew 1%, while Coke Zero Sugar volume surged 13%. The juice, value-added dairy, and plant-based beverage segment declined 3%, as Fairlife demand growth was offset by the sale of the finished goods business in Nigeria to a bottler.
CEO Transition
Tuesday marked the final earnings release for current CEO James Quincey. The company announced in December that Chief Operating Officer Enrique Braun will become CEO effective March 31.
During Tuesday's company conference call, Braun stated he aims to accelerate Coca-Cola's new product launch speed, better integrate marketing at actual consumer purchase points, and continue advancing digitalization across all processes. "Our system needs to perform better and be sharper everywhere to drive transformation and tangible results," Braun said.
Chief Financial Officer John Murphy indicated the company will maintain a flexible and opportunistic approach to acquisitions. He noted that while Coca-Cola's acquisition history hasn't been perfect, nearly half of its 32 billion-dollar brands came from mergers and acquisitions.
The executive team plans to provide further details on the company's future strategic priorities at the CAGNY annual conference on February 17.
As of Tuesday's market open, Coca-Cola shares had gained approximately 20% over the past year, with market capitalization exceeding $330 billion.