Coca-Cola Stock Rises on Earnings. ‘We’re Confident We Can Deliver on 2025 Guidance,’ Says CEO

Coca-Cola posted adjusted earnings and net revenue that beat analysts’ expectations in its third quarter. (ERIC PIERMONT/AFP/Getty Images)

Key Points

• Coca-Cola’s third-quarter adjusted earnings of 82 cents a share exceed analysts’ expectations of 75 cents.
• Net revenue reaches $12.5 billion, slightly surpassing the consensus estimate of $12.4 billion.
• The company projects 2025 adjusted organic revenue growth of 5% to 6% and adjusted earnings to increase by 3%.

Coca-Cola stock rose Tuesday after the beverage maker posted better-than-expected earnings in the third quarter and asserted it could deliver on its fiscal-year guidance.

Adjusted earnings of 82 cents a share beat the 75 cents analysts had anticipated, while net revenue of $12.5 billion narrowly topped the consensus estimate of $12.4 billion, according to FactSet.

“While the overall environment has continued to be challenging, we’ve stayed flexible,” CEO James Quincey said in a statement. “We’re confident we can deliver on our 2025 guidance while also working to achieve our longer-term objectives.”

Coca-Cola said it remains on track to deliver 5% to 6% adjusted organic revenue growth in 2025, and adjusted earnings up 3% from $2.88 a share in 2024.

Coca-Cola cited higher prices and a better product mix as drivers of its solid revenue and profit in the third quarter. Unit case volume varied from region to region, though it saw the most growth in the Middle East, rising 4% from last year across multiple product categories.

This growth didn’t carry over to other parts of the world. Unit case volume was flat in North America and Latin America, as growth in categories such as coffee and tea were offset by a decline in trademark Coca-Cola. The picture was even worse in the Asia Pacific region, where a 1% decline in unit case volume was driven by a decline in sparkling flavors.

On a global scale, volumes of soda were flat. Water, sports drinks, coffee and tea increased 3%, while juice, dairy, and plant-based beverages declined just as much due to falling volumes in the Asia Pacific region.

Shares gained 3.6% on Tuesday. Peers PepsiCo and Keurig Dr. Pepper were down slightly and up slightly, respectively. The benchmark S&P 500 rose 0.2%.

Separately, Coca-Cola and longtime partner Gutsche Family Investments reached a $2.6 billion deal to sell a majority stake in Coca-Cola Beverages Africa to Coca-Cola HBC, a Switzerland-based strategic bottling partner. The transaction is expected to close by the end of 2026, the company said.

Last quarter, shares fell on a mixed print as earnings topped analysts’ expectations but revenue narrowly missed forecasts. While organic net revenue increased from the prior year, the move was driven by higher prices. A deeper look revealed that Coca-Cola’s unit case volume fell in most regions during the quarter, save for growth in Europe, the Middle East, and Africa.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com