The Hidden Number in Coca-Cola’s Earnings That Could Change Everything for Dividend Investors in 2026

By Trey Thoelcke Published Feb 10, 8:20AM EST

Quick Read

Coca-Cola (KO) took a $960M impairment charge on BODYARMOR due to slowing sports drink growth and competitive pressure.
Coca-Cola’s revenue missed estimates by 4.6% at $11.82B. Operating income fell 32% year over year.
Coca-Cola increased dividends for the 63rd consecutive year. The company paid $8.78B in dividends during 2025.
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The Hidden Number in Coca-Cola’s Earnings That Could Change Everything for Dividend Investors in 2026 — © Justin Sullivan / Getty Images News via Getty Images

At a Glance

EPS: $0.58 (met consensus estimate)
Revenue: $11.82 billion (missed estimate of $12.39 billion by 4.6%)
Operating Income: $1.84 billion (down 32% YoY)
Net Income: $2.27 billion
Organic Revenue Growth: 5%

BODYARMOR Impairment Overshadows Solid Volume Growth

Coca-Cola (NYSE: KO | KO Price Prediction) reported fourth-quarter results that met EPS expectations but fell short on revenue, with the headline dominated by a $960 million non-cash impairment charge on its BODYARMOR trademark. The writedown reflects slowing projected growth in the sports drink category and intensifying competitive pressure, marking a significant setback for the BODYARMOR brand.

Despite the impairment, underlying performance showed resilience. Comparable currency neutral operating income grew 13%, while global unit case volume increased 1%, led by strength in Brazil, the United States, and Japan. The company’s flagship zero-sugar variant continued its momentum with 13% volume growth in the quarter.

CEO James Quincey expressed cautious optimism: “I’m encouraged by our performance in 2025 which showed both the resilience and momentum that define our business.”

2026 Outlook and Strategic Shifts

Management guided 4% to 5% organic revenue growth and 7% to 8% comparable EPS growth for 2026, with an expected 3% currency tailwind. Free cash flow is projected at approximately $12.2 billion.

The company announced the creation of a chief digital officer position to accelerate digital transformation and expects to close the sale of Coca-Cola Beverages Africa in the second half of 2026. Full-year 2025 results showed $8.78 billion in dividends paid, marking the company’s 63rd consecutive year of dividend increases.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.