Coca-Cola reported weaker-than-expected quarterly revenue, marking its first miss versus Wall Street expectations in five years. Despite the shortfall, the beverage giant signaled early signs of demand recovery in key regions and offered an optimistic outlook for 2026, supported by premium product growth and improving volumes in the Americas.
Quarterly results fall short of forecasts
For the fourth quarter ended December 31, Coca-Cola posted adjusted revenue of $11.82 billion, below analysts’ expectations of $12.03 billion. Adjusted earnings per share came in at 58 cents, exceeding forecasts of 56 cents. Net income attributable to shareholders rose to $2.27 billion, or 53 cents per share, compared with $2.2 billion a year earlier.
Net sales increased 2% year over year, while organic revenue growth reached 5%, excluding currency effects and portfolio changes. Unit case volume rose 1%, marking the company’s second consecutive quarter of volume growth.
Regional demand begins to stabilize
After a challenging year marked by cautious consumer spending, Coca-Cola saw signs of improvement in two critical markets. Volume in North America increased 1%, while Latin America posted a 2% gain. These results suggest easing pressure from inflation and budget-conscious behavior that previously weighed on demand.
Overall volume for 2025 was flat, reflecting ongoing challenges as consumers reduced discretionary spending. However, management noted gradual stabilization toward the end of the year.
Premium and health-focused brands outperform
Coca-Cola’s water, sports, coffee, and tea division outperformed the rest of its portfolio, with volume growth of 3%. Brands such as Smartwater and Bodyarmor drove results, highlighting consumer willingness to pay more for beverages perceived as healthier or premium.
Sparkling soft drinks reported flat volume overall, though Coca-Cola Zero Sugar continued to gain traction with a 13% volume increase. The company’s juice, dairy, and plant-based segment declined 3%, partly due to divestments despite strong demand for Fairlife.
2026 outlook and leadership transition
Looking ahead, Coca-Cola expects organic revenue growth of 4% to 5% and comparable earnings per share growth of 7% to 8% in 2026. Outgoing CEO James Quincey described the outlook as realistic and cautious, particularly in international markets.
The quarter marked Quincey’s final earnings report as CEO. Incoming chief executive Henrique Braun emphasized faster product launches, deeper digital integration, and continued discipline in acquisitions as key priorities going forward.
Conclusion
While Coca-Cola’s latest revenue miss underscores lingering consumer pressures, improving volumes and strong performance from premium brands point to a gradual recovery. With a measured 2026 outlook and new leadership in place, the company aims to sharpen execution and capitalize on stabilizing global demand.
