Coca-Cola Reports First Revenue Miss in Five Years, Guides 4%-5% Growth
Coca-Cola's Q4 2025 results showed its first revenue miss in five years, though EPS beat expectations and Coke Zero Sugar grew 14% year-over-year. The company recorded a $960 million BodyArmor impairment and guided 4%-5% organic sales growth for 2026, below the 5% consensus, triggering a 2.5% share decline.
1. Q4 2025 Results
Coca-Cola delivered adjusted Q4 results with revenue missing analyst forecasts for the first time in five years, while earnings per share exceeded estimates. The company highlighted a 14% year-over-year increase in Coca-Cola Zero Sugar volumes despite overall volume pressures.
2. 2026 Outlook and Impairment
Management recorded a $960 million impairment on its BodyArmor business and issued guidance for 4%-5% organic sales growth in 2026, below the roughly 5% consensus. The slower outlook reflects mixed global conditions, including higher taxes on sugary drinks in Mexico.
3. Market Reaction and Leadership
Shares fell about 2.5% following the outlook and impairment announcement, retracing earlier YTD gains. Outgoing CEO James Quincey will hand over to COO Henrique Braun at the end of March, as investors focus on execution under the new leadership.