Coca-Cola shares fell on Tuesday after the beverage giant reported quarterly revenue growth that came in below analysts’ expectations, overshadowing a modest earnings beat and early signs of stabilising demand in key markets.
The company reported adjusted earnings of 58 cents per share for the fourth quarter, ahead of Wall Street estimates of 56 cents.
Net revenue rose 2% from a year earlier to $11.8 billion, missing the consensus forecast of $12.05 billion.
Coca-Cola stock was down close to 4% in premarket trading.
The results highlight the delicate balance facing global consumer brands as they attempt to sustain growth through pricing and premium products while navigating cautious consumer spending.
Pricing power offsets uneven demand
Coca-Cola said it raised prices by 4% in North America and 1% globally during the quarter, helping to lift revenue despite mixed volume trends.
Unit case volume rose 1%, supported by growth in Brazil, the United States and Japan, although gains were partially offset by an unfavourable product mix.
Coca-Cola Zero Sugar was among the standout performers, with sales rising 13% during the October-December period.
Demand for water, sports drinks, coffee and tea also improved, while juices and dairy products lagged.
The company’s juice, value-added dairy and plant-based beverages segment reported a 3% decline in volume.
Higher demand for Fairlife was partly offset by the sale of Coca-Cola’s finished product operations in Nigeria to a bottler.
Sparkling soft drinks, including Coca-Cola’s flagship soda, recorded flat overall volume, with the namesake brand posting a modest 1% increase.
Consumers remain cautious but selective
Like rival PepsiCo, Coca-Cola has faced pressure as consumers cut back on discretionary spending and adjust grocery habits amid persistent cost-of-living concerns.
The company said its overall volume for 2025 was unchanged from the previous year, reflecting the impact of tighter household budgets.
In response, Coca-Cola has experimented with smaller packaging and more affordable options.
Last month, the company introduced 7.5-ounce mini cans in North American convenience stores to appeal to price-sensitive shoppers.
At the same time, premium brands such as Smartwater and Fairlife have continued to attract consumers willing to pay more, underscoring the growing divergence between value-driven and premium demand.
Coca-Cola reported volume growth of 1% in North America and 2% in Latin America, two of its most important markets.
Water, sports, coffee and tea categories grew 3%, while sparkling beverages remained flat.
Outlook remains steady despite near-term headwinds
Coca-Cola forecast organic revenue growth of 4% to 5% and comparable earnings growth of 7% to 8% for 2026, signalling confidence in its ability to navigate a challenging consumer environment.
The company expects core earnings per share to grow 7% to 8% in 2026 from about $3 in 2025. FactSet estimates of $3.22 imply growth of roughly 7.3%.
Coca-Cola’s stock had rallied strongly in recent months, rising 20.8% over the past 12 months through Monday, compared with gains of 15.3% for PepsiCo and 14.8% for the S&P 500.
Monday’s decline snapped a seven-session winning streak, with the shares closing at a record high on Friday.
The results come as Coca-Cola prepares for a leadership transition.
The company said in December that Henrique Braun, its chief operating officer and a three-decade veteran of the company, will take over as chief executive on March 31.
Current chairman and chief executive James Quincey will move into the role of executive chairman.
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