TLDR
- Coca-Cola stock dropped nearly 4% premarket after Q4 revenue of $11.82 billion missed analyst forecasts of $12.03 billion
- 2026 revenue growth guidance of 4-5% fell short of Wall Street’s 5.3% estimate and trails 2025’s 5% growth
- Volume growth stayed flat in Asia-Pacific as regional beverage brands gain market share from global players
- Price increases of 4% in 2025 helped offset costs but pressured budget-conscious consumers reducing soda purchases
- CEO transition looms with Henrique Braun taking over March 31 as company navigates demand challenges
Coca-Cola stock tumbled nearly 4% in premarket trading Tuesday following a disappointing fourth-quarter earnings report and lackluster revenue guidance for 2026.
The beverage company posted Q4 revenue of $11.82 billion. That fell short of the $12.03 billion Wall Street expected.
Demand for sodas weakened across North America and Asia during the quarter. The miss signals growing headwinds for the world’s largest beverage maker.
Coca-Cola’s 2026 organic revenue growth forecast came in at 4-5%. Analysts had expected 5.3% growth. The guidance also represents a slowdown from 2025’s 5% expansion.
“The forecast reads conservative, but is appropriate for the start of the year,” Jefferies analyst Kaumil Gajrawala noted. “Street likely wanted more.”
Price Hikes Weigh on Consumer Demand
Coca-Cola raised beverage prices 4% during 2025 to combat higher input costs. But those increases have taken a toll on inflation-weary consumers.
Unit case volumes rose just 1% in the fourth quarter. That matched the growth rate from the prior three months.
Full-year volumes stayed completely flat. Pricing power alone drove the company’s performance.
Competitor PepsiCo announced price cuts last week on popular snacks like Lay’s and Doritos. Consumers have pushed back after years of consecutive price hikes.
The pressure comes at a sensitive time for Coca-Cola. Veteran executive Henrique Braun takes over as CEO on March 31.
Asia Troubles and Changing Preferences
Coca-Cola beat earnings expectations with adjusted EPS of 58 cents versus the 56-cent estimate. But the revenue shortfall highlighted persistent challenges.
Volume growth was flat in Asia-Pacific during the quarter. Regional brands continue gaining ground in the critical market.
The company is adapting its product mix for changing consumer tastes. Zero-sugar sodas, sports drinks, and bottled teas are getting more emphasis.
Weight-loss drugs have accelerated the shift toward healthier beverage options. Coca-Cola invested in products like protein-infused Fairlife milk to capture health-focused buyers.
The company forecast 7-8% adjusted profit per share growth for 2026. That trailed analyst expectations of 7.9%.
Despite Tuesday’s decline, Coca-Cola stock has gained about 12% in 2025. The stock has outperformed PepsiCo over recent years.
The company’s Q4 adjusted earnings of 58 cents per share topped the 56-cent analyst estimate.
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