Coca-Cola Q4 and Full-Year 2025 Earnings: Revenue Misses $12.05B Target at $11.8B

Coca-Cola delivered Q4 2025 comparable EPS of $0.58, topping estimates of about $0.56, while net revenue rose 2% to $11.8 billion, missing the roughly $12.05 billion consensus. The mixed print and a more cautious 2026 outlook drove KO shares down nearly 4% in early trading as investors reacted to the revenue miss and softer guidance.

About The Coca-Cola Company (KO)

The Coca-Cola Company (NYSE: KO) is the world’s largest non-alcoholic beverage company, best known for its flagship Coca‑Cola brand and a broad portfolio spanning sparkling soft drinks, water, sports drinks, juices, dairy, coffee and ready‑to‑drink tea. Founded in 1892, Coca‑Cola is headquartered in Atlanta, Georgia, USA and today sells more than 2.2 billion servings daily in over 200 countries and territories.

As of early February 2026, Coca‑Cola has a market capitalisation of roughly $335 billion, with a normalised price‑to‑earnings ratio of around 25–26x and a dividend yield of near 2.6%, reflecting its profile as a mature, cash-generating consumer-defensive name. The company and its bottling partners employ approximately 70,000 people directly and hundreds of thousands more across its global system. KO is widely held as a defensive, income‑oriented stock, underpinned by long-duration brands, steady free cash flow and a multi‑decade dividend growth track record.

Top Financial Highlights

1. Q4 revenue: Net revenues grew 2% year over year to $11.8 billion, while organic revenues (non‑GAAP) increased 5%, driven by a 4% increase in concentrate sales and 1% growth in price/mix.
2. Full-year revenue: For 2025, net revenues rose 2% to $47.9 billion, with organic revenues up 5% as 4% price/mix growth and 1% higher concentrate sales offset flat unit case volumes.
3. Q4 net income: Q4 2025 net income was $2.27 billion, up from $2.20 billion a year earlier, reflecting EPS growth despite a large non‑cash impairment and FX headwinds.
4. Full-year net income: Full‑year 2025 net income climbed to $13.11 billion, compared with $10.63 billion in 2024, a 23% increase aligned with reported EPS growth.
5. Earnings per share (Q4): Reported EPS grew 4% to $0.53, while comparable EPS (non‑GAAP) rose 6% to $0.58, even after a roughly 5–9 point currency headwind.
6. Earnings per share (full year): Full‑year reported EPS advanced 23% to $3.04, with comparable EPS up 4% to $3.00, underscoring strong margin expansion and disciplined cost control.
7. Gross margin: In Q4 2025, gross profit was $7.10 billion on $11.82 billion of revenue, implying a gross margin of about 60.0%, essentially flat versus Q4 2024 despite inflation and mix pressures.
8. Operating margin & impairment: Q4 reported operating margin fell to 15.6% from 23.5% a year earlier, hit by a $960 million non‑cash impairment on the BODYARMOR trademark, while comparable operating margin expanded to 24.4% from 24.0%, supported by 5% organic revenue growth and productivity gains.
9. Cash flow and free cash flow: For 2025, cash flow from operations totaled $7.4 billion and free cash flow $5.3 billion, reflecting a $6.1 billion contingent consideration payment tied to the fairlife acquisition; excluding this, free cash flow was $11.4 billion.
10. Capital allocation: Coca‑Cola invested $2.1 billion in capital expenditures, paid $8.8 billion in dividends, and executed $0.7 billion of share repurchases (net $0.4 billion after option exercises), continuing a 63‑year streak of annual dividend increases.
11. Segment performance: All major geographic segments contributed to organic revenue growth; for Q4, organic revenues grew 6% in Europe, Middle East & Africa, 10% in Latin America, 5% in North America, and were roughly flat in Asia Pacific, with the Bottling Investments segment down modestly.
12. Cash on hand: As of the latest reported quarter before year‑end (September 2025), Coca‑Cola held approximately $9.9 billion in cash and cash equivalents, plus additional short‑term investments, supporting continued dividends and buybacks.
13. 2026 guidance: Management expects 4–5% organic revenue growth in 2026, comparable currency‑neutral EPS growth (excluding M&A) of 5–6%, and total comparable EPS growth of 7–8% versus $3.00 in 2025, alongside targeted free cash flow of about $12.2 billion.

Beat or Miss?

Overall, the quarter is best characterized as a profit beat but revenue miss: Coca‑Cola protected earnings through pricing and productivity, but investors focused on the shortfall versus revenue expectations and a moderated 2026 growth outlook.

What Leadership Is Saying?

“I’m encouraged by our performance in 2025 which showed both the resilience and momentum that define our business. Looking ahead, we will focus on executing our strategy even better and positioning our system for long-term success.” — James Quincey, Chairman and CEO

“Yes, pleased with the way we came out of the first quarter on the operating margin front… embedded in that are our belief in our ability to expand margins over time.” — John Murphy, President and CFO

Historical Performance 

Year-over-Year: Coca-Cola Q4 2025 vs Q4 2024

Definition note: Operating expenses below are defined as cost of goods sold plus selling, general & administrative expenses and other operating charges.

• Revenue growth of about 2–2.5% reflects modest volume gains (unit case volume up 1%) and low‑single‑digit price/mix, consistent with a more normalized post‑inflation pricing environment.
• Net income grew slightly faster than revenue despite significant BODYARMOR impairment and FX headwinds, driven by underlying margin expansion and disciplined cost control.
• Operating expenses rose at a double‑digit pace, largely due to a $960 million impairment charge and increased marketing, which depressed reported operating income even as the comparable operating margin improved year over year.

Historical Performance of a Key Competitor

To contextualise Coca‑Cola’s performance, PepsiCo’s most recent quarter (Q4 2025, reported February 3, 2026) is summarised below.

PepsiCo delivered stronger top-line growth (5.6% vs Coca‑Cola’s 2–2.5%) and much larger YoY profit gains in Q4, helped by lapping prior‑year charges and driving operating margin expansion across segments. Its core EPS of $2.26 grew at a double‑digit rate, and management guided to 2026 organic revenue growth of 2–4% and core constant currency EPS growth of 4–6%, signaling a steady but slightly slower cadence ahead.

This comparison highlights that, in the latest quarter, PepsiCo outpaced Coca‑Cola on reported revenue and profit growth, even as both companies leaned on productivity, pricing and portfolio management to sustain margins in a slower consumption environment.

How the Market Reacted?

Equity markets focused heavily on Coca‑Cola’s revenue miss and softer 2026 outlook. While Q4 comparable EPS beat by roughly 4%, net revenue of $11.8 billion fell short of the approximately $12.05 billion consensus and marked the first notable top‑line miss in several years. Management’s guidance for 4–5% organic revenue growth and 7–8% comparable EPS growth in 2026 came in below many investors’ hopes, particularly given KO’s premium valuation in the mid‑20s P/E range.

As a result, KO shares fell as much as about 4% in early trading on the day of the release, reflecting a decidedly bearish near‑term sentiment despite healthy cash flows and continued dividend growth. The reaction suggests that, for now, the market is more concerned about slower forward growth and top‑line momentum than reassured by Coca‑Cola’s still‑robust profitability and balance sheet strength.