Coca-Cola Co. shares fell approximately 3 percent in premarket trading on Tuesday after the beverage giant forecast modest growth for 2026, reflecting ongoing caution over demand trends in key markets.
The company projected organic revenue growth of 4 percent to 5 percent for the full year, alongside comparable earnings per share (EPS) growth of 7 percent to 8 percent. The guidance underscores Coca-Cola’s expectations of gradual recovery in consumer demand, particularly in North and Latin America, following a period of stagnant sales.
For the fourth quarter ended December 31, Coca-Cola reported net income attributable to shareholders of US$2.27 billion, or 53 cents per share, up from US$2.2 billion, or 51 cents per share, a year earlier. Adjusted earnings per share, which exclude transaction gains and one-time items, reached 58 cents, exceeding the 56 cents per share anticipated by analysts surveyed by LSEG.
Revenue for the quarter rose 2 percent to US$11.82 billion, slightly below the $12.03 billion expected by analysts. Organic revenue, which strips out acquisitions, divestitures, and currency effects, increased 5%, reflecting a moderate rebound in underlying demand.
Unit case volume, a measure of product movement excluding pricing and currency impacts, grew 1% in the quarter, marking Coca-Cola’s second consecutive quarter of growth. The increase was led by North America, where volume rose 1 percent, and Latin America, which saw a 2 percent uptick, signaling early signs of stabilization in key markets.
Despite the modest gains, Coca-Cola faces pressure from consumers tightening budgets amid broader economic concerns. Like rival PepsiCo, the company has experienced soft demand for its sparkling soft drinks, as shoppers cut back on discretionary spending and reduce dining out. Overall volume for 2025 remained flat compared with the prior year.
Coca-Cola’s water, sports, coffee, and tea division emerged as a bright spot. Volume in the segment grew 3 percent, boosted by higher demand for premium brands such as Smartwater and Bodyarmor. The growth reflects consumer willingness to spend more on perceived healthier beverages, even as soda sales remain under pressure.
Within the sparkling beverages category, the company’s flagship Coca-Cola soda saw volume rise 1 percent, while Coke Zero Sugar climbed 13 percent, driven by strong marketing and health-conscious consumer trends. In contrast, Coca-Cola’s juice, value-added dairy, and plant-based beverages segment posted a 3% decline in volume. Gains from the Fairlife brand were offset by the sale of Coca-Cola’s finished product operations in Nigeria to a local bottler.
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Over the past year, Coca-Cola shares have risen roughly 22 percent, bringing the company’s market value to around US$335 billion. Analysts note that while the stock’s long-term outlook remains positive, the company faces near-term challenges tied to consumer spending patterns, rising input costs, and the ongoing shift in beverage preferences toward premium and health-oriented products.
“Coca-Cola is navigating a mixed environment,” said one industry analyst. “Volume growth is modest, and pricing power is limited in key markets, but the company’s diversified portfolio, including premium and non-carbonated drinks, is helping to offset some pressure.”
Coca-Cola’s outlook for 2026 highlights the delicate balance the company must strike between managing costs, driving innovation in product lines, and responding to changing consumer behavior. Investors will closely monitor quarterly results and market dynamics to gauge whether the recovery in demand is sustainable across regions.
As global beverage markets continue to evolve, Coca-Cola’s performance will likely hinge on its ability to adapt to consumer trends, expand health-oriented offerings, and maintain operational efficiency while navigating macroeconomic headwinds.
Background to Coca-Cola shares
Coca-Cola Company (NYSE: KO) is one of the world’s largest beverage companies, best known for its flagship soda, Coca-Cola. The company has been publicly traded since 1919, making it one of the longest-standing stocks on the New York Stock Exchange. Coca-Cola shares are considered blue-chip and dividend-paying, often viewed as a stable investment due to the company’s global brand presence, diversified beverage portfolio, and consistent cash flows.
The stock’s performance is influenced by global consumer demand, sugar and commodity costs, marketing spend, and foreign exchange movements, as Coca-Cola generates a significant portion of revenue from outside the U.S.
