The Coca-Cola Company (KO) Q4 2025 earnings summary

Executive summary

• Leadership transition announced, with Henrique Braun succeeding James Quincey as CEO, emphasizing continuity and a focus on growth, innovation, and digital engagement.

• Strategic priorities since 2017 have driven 7% average organic revenue growth and $150 billion in market value creation.

• Underlying gross and operating margins expanded significantly year-over-year, driven by organic revenue growth and effective cost management.

• Acquisitions and divestitures, notably the sale of finished product operations in Nigeria and bottling refranchising, provided a tailwind to margins.

• Global unit case volume grew 1% in Q4 and was flat for the full year, with net revenues up 2% for both periods; organic revenues (non-GAAP) rose 5% for both periods, driven by concentrate sales and price/mix improvements.

Financial highlights

• Organic revenue grew 5% in Q4 2025; unit case growth was 1%.

• Comparable EPS for Q4 was $0.58, up 6% year-over-year, despite 5% currency headwinds.

• FY 2025 reported gross margin reached 61.6%, with underlying gross margin up ~110 bps year-over-year.

• Free cash flow (excluding fairlife payment) reached $11.4 billion in 2025, up $600 million from the prior year.

• Q4 operating margin: 15.6% (GAAP), 24.4% (comparable); full year: 28.7% (GAAP), 31.2% (comparable).

Outlook and guidance

• 2026 organic revenue growth expected at 4%-5%, in line with long-term algorithm.

• Comparable currency-neutral EPS growth (excluding M&A) projected at 5%-6%.

• Total comparable EPS growth expected at 7%-8% versus $3 in 2025.

• Free cash flow guidance for 2026 is approximately $12.2 billion.

• Margin expansion is expected to continue, supported by organic revenue growth and ongoing cost management initiatives.