Coca-Cola (NYSE: KO)’s stock posted strong fourth-quarter earnings, outperforming Wall Street estimates and gaining ground against its main competitor, PepsiCo (PEP).
The beverage giant continues to demonstrate resilience despite economic challenges.
Q4 2025 Earnings Breakdown
Here’s how Coca-Cola performed compared to analyst expectations:
- Revenue: $11.5 billion (vs. $10.67 billion expected)
- Adjusted Earnings per Share (EPS): $0.55 (vs. $0.52 expected)
- Price/Mix Growth: 9% (vs. 6.71% expected)
- Unit Case Volume Growth: 2% (vs. -0.21% expected)
Strong Market Position & Competitive Edge
Coca-Cola’s CEO, James Quincey, emphasized the company’s ability to “lead through dynamic external environments,” leveraging its global scale and local expertise to drive growth. Analysts noted Coca-Cola’s balanced approach between volume growth and pricing strategies.
Regional Performance Highlights
Latin America: A standout performer, with net revenue growing by 3%. The region saw a 23% price/mix growth and a 2% increase in unit case volume, led by the expansion of Coca-Cola’s product offerings.
North America: The company recorded a 1% increase in unit case volume, with notable growth in sparkling beverages, juices, and plant-based drinks. A 12% price/mix increase contributed significantly to revenue gains.
Stock Performance & Future Outlook
Despite economic uncertainties, Coca-Cola’s stock has risen 7% over the past year, outperforming PepsiCo’s 16% decline. However, it still lags behind the S&P 500’s 20% gain.
Projected Growth in 2025:
- Expected organic revenue growth: 5-6%
- Projected adjusted earnings growth: 2-3%
Is Coca-Cola Stock a Buy?
Coca-Cola continues to be a dominant player in the beverage industry, showing resilience in pricing strategies and market expansion. While challenges remain, its strong brand positioning and ability to navigate economic shifts make it a solid long-term investment.
