Shares in Coca-Cola (KO) softened 1.2% to $77 on Wall Street after Q4 revenues missed estimates and the drinks leviathan’s FY26 growth forecast lacked fizz.
Georgia-headquartered Coca-Cola is projecting organic revenue growth of 4% to 5% for the current year, below the 5% growth expected by analysts based on Bloomberg data.
Q4 sales from the colossus behind brands including Coke, Fanta, Schweppes and Powerade disappointed investors amid subdued demand for its fizzy drinks in North America and the Asia Pacific region.
| Share price: $77 (-1.2%) | PE: 24.1x |
| Market cap: $335bn | Yield: 2.7% |
Volumes fall flat
Coca-Cola delivered a 5% rise in Q4 organic revenue amid a 1% rise in unit case volume led by growth in Brazil, the US and Japan.
However for the full year, unit case volume fell flat, as growth in Central Asia, North Africa and Brazil was offset by declines in Mexico, the US and Thailand.
In North America, Q4 volumes grew 1% while prices were up 4% as consumers continued to turn to zero or low-sugar sodas.
Indeed, Coca-Cola Zero Sugar grew 13% for the quarter and 14% for the full year, both driven by growth across all geographic operating segments.
Serving up his final set of results as CEO, James Quincey offered a ‘prudent’ outlook for 2026 as Coca-Cola seeks to infuse its international sales with more fizz.
The company guided for comparable earnings per share (EPS) growth of 7% to 8%, which would represent a slowdown on the 9% growth delivered last year.
System for long-term success
‘I’m encouraged by our performance in 2025 which showed both the resilience and momentum that define our business,’ commented Quincey, who has been CEO since 2017 and hands the baton to Coca-Cola COO Henrique Braun on 31 March.
‘Looking ahead, we will focus on executing our strategy even better and positioning our system for long-term success.’
In common with rival PepsiCo (PEP), Coca-Cola has seen demand for its drinks fall as cash-strapped and increasingly health-conscious consumers grapple with inflationary pressures.
Despite short-term headwinds, the recent share price pullback from all-time record peaks presents a fresh buying opportunity for income-seekers.
Coca-Cola doled out $8.8bn in dividends during 2025 and has now increased its dividend in each of the last 63 years.
And lest we forget, the stock is also one of legendary investor Warren Buffett’s most profitable, buy-and-hold ‘forever’ investments.
Read the press release here: https://investors.coca-colacompany.com/financial-information
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