Coca-Cola Q4 2025 Earnings Miss Revenue Forecast
Coca-Cola Q4 2025 earnings missed revenue expectations as gains were offset by a $960 million BODYARMOR impairment, raising scrutiny of guidance.
KEY TAKEAWAYS
- Q4 net revenue was $11.8 billion, missing roughly $12.1 billion consensus.
- Unit-case volume rose 2% while organic revenue grew 5% on concentrate and price/mix.
- Operating income fell 32% after a $960 million noncash BODYARMOR trademark impairment.
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Coca‑Cola’s Q4 2025 earnings, reported Feb. 10, 2026, showed revenue below expectations despite gains in unit-case volumes and price/mix. The company said a trademark impairment related to BODYARMOR reduced operating income.
Quarter Results and Impairment
Coca‑Cola Co. (KO) reported Q4 net revenues of $11.8 billion, up 2% year-over-year. Organic revenue, a non-GAAP measure excluding currency and acquisitions, rose 5%, driven by 4% growth in concentrate sales and a 1% price/mix increase. The revenue fell short of the roughly $12.05 billion consensus, the company said in its earnings release.
Unit-case volume grew 2%, led by Trademark Coca‑Cola and sparkling flavors. Juice, dairy, and plant-based volumes declined 3%, while water, sports, coffee, and tea rose 3%. Sparkling volumes were flat.
Reported Q4 earnings per share (EPS) rose 4% to $0.53. Comparable EPS, excluding certain items, increased 6% to $0.58, despite a nine-percentage-point currency headwind.
Operating income fell 32% after the company recorded a $960 million non-cash trademark impairment tied to BODYARMOR, detailed in its 8-K filing.
Fiscal Results and 2026 Outlook
For fiscal 2025, net revenues totaled $47.9 billion, up 2% year-over-year, with organic revenue growing 5%. Operating income rose 38% to $13.8 billion, producing a 28.7% margin. Reported EPS was $3.04, up 23%, while comparable EPS increased 4% to $3.00, reflecting an eight-percentage-point currency headwind.
Cash flow from operations was $7.4 billion, and free cash flow, a non-GAAP measure of cash available after capital expenditures, was $5.3 billion.
For fiscal 2026, the company forecasts organic revenue growth of 4% to 5% and expects about $12.2 billion in free cash flow. This guidance excludes an estimated 8% to 11% currency headwind, assumes the Coca‑Cola Beverages Africa sale will close in the second half of 2026 pending regulatory approvals, and anticipates roughly a one-percentage-point headwind from acquisitions and divestitures. The company presented this outlook as its baseline for comparability and cash-generation expectations next year.
