Coca-Cola 2025 Earnings Report Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Organic Sales Growth: Coca-Cola reported a 5% organic sales increase for 2025, demonstrating strong market performance despite industry headwinds; however, the guidance for 2026 suggests a slowdown to 4%-5% growth, reflecting shifts in consumer preferences towards healthier options and tightening budgets.
- Investor Reaction: Investors reacted negatively to Coca-Cola's cautious outlook, resulting in a stock sell-off that indicates market concerns regarding the company's future profitability, potentially impacting its short-term investment appeal.
- Comparison with PepsiCo: PepsiCo's organic sales grew only 1.7% in 2025, indicating greater industry pressures; although its dividend yield of 3.4% surpasses Coca-Cola's 2.7%, its overall performance remains inferior to Coca-Cola's.
- Long-Term Outlook: PepsiCo projects organic sales growth of 2%-4% for 2026, still trailing Coca-Cola's expectations, yet its diversified business model offers more long-term growth opportunities despite facing short-term challenges.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to rise
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 79.000
Low
71.00
Averages
79.33
High
85.00
Current: 79.000
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coca-Cola Shares Drop on Mixed Earnings Outlook
- Holding Status: Berkshire Hathaway has held Coca-Cola for over 35 years, with 400 million shares valued at approximately $30.8 billion as of September 2025, representing 9.4% of its portfolio, indicating long-term confidence in the beverage giant.
- Earnings Performance: Coca-Cola reported Q4 earnings of $0.58 per share on $11.8 billion in revenue, surpassing Wall Street's $0.56 estimate, yet falling short of the $12.05 billion forecast, highlighting a slowdown in sales growth.
- Management Change: CEO James Quincey will depart at the end of March, with COO Henrique Braun taking over, a transition that may unsettle investors, particularly given the company's lowered sales growth expectations.
- Market Challenges: Coca-Cola faces a complicated global trade environment with new sugar taxes and shifting consumer preferences towards healthier options, despite a 10% stock increase year-to-date, indicating potential hurdles for the incoming CEO.
See More
Consumer Staples Benefit from Market Rotation in 2026
- Sector Performance: In 2026, the consumer staples sector has surged over 15.5% in the S&P 500, becoming the third-best performing sector, indicating a growing investor preference for defensive stocks amid a market rotation.
- Valuation Surge: Wolfe Research noted that market-weighted valuations for consumer staples have reached their highest levels since the 1990s, reflecting increased investor confidence in the sector despite a lackluster overall market performance.
- Walmart's Market Position: Walmart's stock jumped 20% in 2026, allowing it to join the $1 trillion market cap club, showcasing its adaptability in the AI economy and solidifying its leading position in retail.
- Future Outlook: Analysts predict that as consumer demand rebounds in 2026, the fundamentals for the consumer staples sector are likely to improve, particularly with potential tax relief for lower-income households boosting product demand.
See More
Three Dividend Stocks to Hold for 20 Years
- AbbVie's Dividend Growth: AbbVie (ABBV), a Dividend King, has raised its dividend for 54 consecutive years, with a current yield of 3.1%, demonstrating its ability to rebound from patent expirations and maintain growth, making it a solid hold for the next 20 years.
- Coca-Cola's Stability: Coca-Cola (KO) is also a Dividend King, having increased its dividend for 63 years, with a yield of 2.6%, as the company has successfully adapted to market changes, marketing 30 brands with annual sales exceeding $1 billion, and is expected to continue its dividend increases.
- Realty Income's High Yield: Realty Income (O), while not a Dividend King, has raised its dividend for 30 years, boasting a yield over 5%, with Q3 adjusted funds from operations at $1.08 per share, significantly above the $0.807 in dividends paid, indicating strong funding capabilities for its dividend program.
- Low Volatility Investment Choice: Realty Income has a beta of 0.5 since its NYSE listing in 1994, reflecting low volatility, and combined with its high dividend yield, it presents an excellent long-term investment option for those seeking stable income.
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Coca-Cola and PepsiCo: Attractive Dividend Stocks
- Coca-Cola's Brand Strength: Coca-Cola stands out as a top dividend stock with a 63-year dividend growth streak and strong brand power, reporting a 1% year-over-year increase in unit case volume while adjusted revenue rose by 6% in Q3, showcasing its pricing power and market share gains.
- Stable Dividend Yield: The current quarterly dividend of $0.51, annualized to $2.04, yields 2.60%, and is expected to grow in line with earnings, which analysts project will increase at a 6% annualized rate over the long term, making it a solid income investment.
- PepsiCo's Growth Potential: With 60 consecutive years of dividend payments, PepsiCo benefits from a strong brand portfolio and global distribution network, achieving over 5% revenue growth despite macroeconomic challenges, alongside an 11% increase in adjusted earnings per share.
- Proactive Investment Strategy: PepsiCo plans to pay $5.92 in dividends per share over the next year, with a forward dividend yield of 3.52%, representing 69% of analysts' 2026 earnings estimates, providing an attractive proposition for income investors.
See More
Coca-Cola and Altria: Defensive Investment Choices
- Coca-Cola's Market Adaptation: Despite declining soda consumption, Coca-Cola has successfully expanded its portfolio with bottled water, juices, and other non-carbonated drinks, achieving a 5% organic revenue growth in 2025 and expecting 4%-5% growth in 2026, thereby solidifying its position in a turbulent market.
- Stable Dividend Returns: With a forward dividend yield of 2.6% and 63 consecutive years of dividend increases, Coca-Cola demonstrates the advantages of its capital-light business model, ensuring stable margins and ample cash flow to support dividend payments.
- Altria's Transformation Strategy: In response to historic lows in U.S. smoking rates, Altria is enhancing its EPS through price increases, cost cuts, and share buybacks, while aiming for at least $5 billion in smoke-free product revenues by 2028, showcasing its adaptability in the tobacco industry.
- Strong Dividend Appeal: Altria offers a forward dividend yield of 6.3% and has raised its dividend 60 times over the past 56 years, with adjusted EPS growth anticipated at 2.5%-5.5% in 2026, making it a reliable safe-haven stock.
See More
Berkshire Likely Sold Additional Shares of Apple and Bank of America in Q4
Berkshire Hathaway's Filing: The company is set to release its fourth-quarter equity holdings, which will be closely examined by investors and analysts.
Warren Buffett's Leadership: This filing is particularly significant as it marks Warren Buffett's final quarter leading Berkshire Hathaway, raising interest in any strategic moves made by him and his team.
See More
Coca-Cola Shares Drop on Mixed Earnings Outlook
- Holding Status: Berkshire Hathaway has held Coca-Cola for over 35 years, with 400 million shares valued at approximately $30.8 billion as of September 2025, representing 9.4% of its portfolio, indicating long-term confidence in the beverage giant.
- Earnings Performance: Coca-Cola reported Q4 earnings of $0.58 per share on $11.8 billion in revenue, surpassing Wall Street's $0.56 estimate, yet falling short of the $12.05 billion forecast, highlighting a slowdown in sales growth.
- Management Change: CEO James Quincey will depart at the end of March, with COO Henrique Braun taking over, a transition that may unsettle investors, particularly given the company's lowered sales growth expectations.
- Market Challenges: Coca-Cola faces a complicated global trade environment with new sugar taxes and shifting consumer preferences towards healthier options, despite a 10% stock increase year-to-date, indicating potential hurdles for the incoming CEO.
See More
Consumer Staples Benefit from Market Rotation in 2026
- Sector Performance: In 2026, the consumer staples sector has surged over 15.5% in the S&P 500, becoming the third-best performing sector, indicating a growing investor preference for defensive stocks amid a market rotation.
- Valuation Surge: Wolfe Research noted that market-weighted valuations for consumer staples have reached their highest levels since the 1990s, reflecting increased investor confidence in the sector despite a lackluster overall market performance.
- Walmart's Market Position: Walmart's stock jumped 20% in 2026, allowing it to join the $1 trillion market cap club, showcasing its adaptability in the AI economy and solidifying its leading position in retail.
- Future Outlook: Analysts predict that as consumer demand rebounds in 2026, the fundamentals for the consumer staples sector are likely to improve, particularly with potential tax relief for lower-income households boosting product demand.
See More
Three Dividend Stocks to Hold for 20 Years
- AbbVie's Dividend Growth: AbbVie (ABBV), a Dividend King, has raised its dividend for 54 consecutive years, with a current yield of 3.1%, demonstrating its ability to rebound from patent expirations and maintain growth, making it a solid hold for the next 20 years.
- Coca-Cola's Stability: Coca-Cola (KO) is also a Dividend King, having increased its dividend for 63 years, with a yield of 2.6%, as the company has successfully adapted to market changes, marketing 30 brands with annual sales exceeding $1 billion, and is expected to continue its dividend increases.
- Realty Income's High Yield: Realty Income (O), while not a Dividend King, has raised its dividend for 30 years, boasting a yield over 5%, with Q3 adjusted funds from operations at $1.08 per share, significantly above the $0.807 in dividends paid, indicating strong funding capabilities for its dividend program.
- Low Volatility Investment Choice: Realty Income has a beta of 0.5 since its NYSE listing in 1994, reflecting low volatility, and combined with its high dividend yield, it presents an excellent long-term investment option for those seeking stable income.
See More
Coca-Cola and PepsiCo: Attractive Dividend Stocks
- Coca-Cola's Brand Strength: Coca-Cola stands out as a top dividend stock with a 63-year dividend growth streak and strong brand power, reporting a 1% year-over-year increase in unit case volume while adjusted revenue rose by 6% in Q3, showcasing its pricing power and market share gains.
- Stable Dividend Yield: The current quarterly dividend of $0.51, annualized to $2.04, yields 2.60%, and is expected to grow in line with earnings, which analysts project will increase at a 6% annualized rate over the long term, making it a solid income investment.
- PepsiCo's Growth Potential: With 60 consecutive years of dividend payments, PepsiCo benefits from a strong brand portfolio and global distribution network, achieving over 5% revenue growth despite macroeconomic challenges, alongside an 11% increase in adjusted earnings per share.
- Proactive Investment Strategy: PepsiCo plans to pay $5.92 in dividends per share over the next year, with a forward dividend yield of 3.52%, representing 69% of analysts' 2026 earnings estimates, providing an attractive proposition for income investors.
See More
Coca-Cola and Altria: Defensive Investment Choices
- Coca-Cola's Market Adaptation: Despite declining soda consumption, Coca-Cola has successfully expanded its portfolio with bottled water, juices, and other non-carbonated drinks, achieving a 5% organic revenue growth in 2025 and expecting 4%-5% growth in 2026, thereby solidifying its position in a turbulent market.
- Stable Dividend Returns: With a forward dividend yield of 2.6% and 63 consecutive years of dividend increases, Coca-Cola demonstrates the advantages of its capital-light business model, ensuring stable margins and ample cash flow to support dividend payments.
- Altria's Transformation Strategy: In response to historic lows in U.S. smoking rates, Altria is enhancing its EPS through price increases, cost cuts, and share buybacks, while aiming for at least $5 billion in smoke-free product revenues by 2028, showcasing its adaptability in the tobacco industry.
- Strong Dividend Appeal: Altria offers a forward dividend yield of 6.3% and has raised its dividend 60 times over the past 56 years, with adjusted EPS growth anticipated at 2.5%-5.5% in 2026, making it a reliable safe-haven stock.
See More
Berkshire Likely Sold Additional Shares of Apple and Bank of America in Q4
Berkshire Hathaway's Filing: The company is set to release its fourth-quarter equity holdings, which will be closely examined by investors and analysts.
Warren Buffett's Leadership: This filing is particularly significant as it marks Warren Buffett's final quarter leading Berkshire Hathaway, raising interest in any strategic moves made by him and his team.
See More
