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.
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