The Coca-Cola Company (KO) Q3 2025 earnings summary

Executive summary

• Net revenues for Q3 2025 grew 5% to $12.5 billion, with organic revenues up 6% year-over-year and EPS increasing 30% to $0.86, despite currency headwinds.

• Operating income surged 59% to $4.0 billion, with comparable EPS up 6% and value share gains across all segments.

• Strategic refranchising in India and Africa nears completion, with significant margin expansion from these structural moves.

• Continued investment in marketing, innovation, and digital engagement to drive brand strength and consumer connection.

• Confident in delivering 2025 guidance and creating long-term stakeholder value.

Financial highlights

• Q3 gross margin was 61.5% and operating margin 32.0%, both up year-over-year, with YTD gross margin at 62.1% and operating margin at 33.0%.

• Comparable EPS of $0.82, up 6% year-over-year, and diluted EPS up 30% to $0.86.

• Free cash flow (excluding fairlife payment) was $8.5B YTD, targeting at least $9.8B for the full year.

• Cash flow from operations increased 28% to $3.65B for the nine months.

• Net debt leverage at 1.8x EBITDA, below target range.

Outlook and guidance

• 2025 guidance: organic revenue growth of 5–6%, comparable currency-neutral EPS growth of ~8%, and a 5% currency headwind to EPS.

• Underlying effective tax rate for 2025 expected at 20.7%.

• Free cash flow (ex-fairlife) expected at least $9.8B in 2025.

• Capital expenditures for 2025 projected at about $2.2B, with continued share repurchases.

• For 2026, expect calendar shifts to impact quarterly cadence and pricing to normalize as inflation moderates.