Coca-Cola's stock falls after a rare sales miss, even as volumes and prices rose

By Tomi Kilgore

Unit case volume increased in the latest quarter, helped by a 13% jump in Coca-Cola Zero

Coca-Cola's stock extends its pullback from a recent record high, after quarterly sales missed expectations.

Shares of Coca-Cola slumped Tuesday after the beverage giant beat fourth-quarter profit expectations but reported a miss in overall revenue for the first time in years.

The company also reported another increase in unit case volume, with concentrate sales and prices both rising, even as growth in North America trailed that of Europe and Latin America. In North America, the company said revenue and market share also increased, even as the lower-income consumers have continued to be hampered by the current economic environment.

The stock (KO) fell 2% in recent morning trading, putting it on track for the biggest one-day, postearnings decline since it lost 2.1% the day third-quarter 2024 results were reported.

The pullback comes after the stock had been on a roll in 2026, as the 1.3% decline on Monday snapped a seven-session winning streak that took it to a record close on Friday.

Coca-Cola said revenue for the quarter to Dec. 31 grew 2.4% from a year ago to $11.82 billion, which was below the average analyst revenue estimate compiled by FactSet of $12.05 billion. That was the first miss since before the third quarter of 2020, based on FactSet data.

Unit case volume was up 1%, led by strength in Brazil, the U.S. and Japan, as concentrate sales rose 4% and price and mix increased 1%.

That compared with rival PepsiCo (PEP), which saw global beverage volume increase 1% as growth in overseas markets offset a 4% drop in North America.

For Coca-Cola, sparkling soft drink volumes were flat for the quarter, while trademark Coca-Cola volume grew 1%. Meanwhile, Coca-Cola Zero volume jumped 13%, with growth across all geographic segments, and Diet Coke/Coca-Cola Light volume was up 2%.

Juice, value-added dairy and plant-based beverage volumes fell 3%, while water, sports, coffee and tea volumes increased 3%.

Net income rose 3.5% to $2.27 billion. Core earnings per share, which excludes nonrecurring items, of 58 cents beat the FactSet consensus of 56 cents.

Looking ahead, the company expects 2026 core EPS growth of 7% to 8% versus $3 in 2025, while the current FactSet EPS estimate of $3.22 implies 7.3% growth.

Shares of Coca-Cola have run up 18.4% over the past 12 months, while PepsiCo shares have gained 15% and the S&P 500 index SPX has advanced 14.9%.

-Tomi Kilgore

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02-10-26 1146ET