Coca-Cola (KO) Stock Falls 4% on Weak Q4 Revenue and Sluggish 2026 Outlook

TLDR

• Coca-Cola stock fell nearly 4% in premarket trading after missing Q4 revenue expectations and issuing weak 2026 guidance
• Q4 revenue came in at $11.82 billion versus analyst estimates of $12.03 billion as soda demand weakened in North America and Asia
• Company forecasts 2026 organic revenue growth of 4-5%, below analyst expectations of 5.3% and slower than 2025’s 5% growth
• Price increases of 4% for full year 2025 helped offset higher input costs but pressured inflation-hit consumers seeking cheaper options
• Volume growth remained flat in Asia-Pacific as consumers increasingly shift to regional brands over global names

Coca-Cola shares dropped nearly 4% in premarket trading Tuesday after the beverage giant missed fourth-quarter revenue expectations and forecast slower-than-expected growth for 2026.

The Atlanta-based company reported Q4 revenue of $11.82 billion, falling short of the $12.03 billion analysts had projected. The miss came as demand for sodas weakened across key markets in North America and Asia.

The Coca-Cola Company, KO

The company’s 2026 organic revenue growth forecast of 4-5% came in below Wall Street’s 5.3% expectation. This also represents a deceleration from the 5% growth Coca-Cola posted in 2025.

“The forecast reads conservative, but is appropriate for the start of the year,” Jefferies analyst Kaumil Gajrawala wrote in a note. “Street likely wanted more.”

Price Hikes Pressure Consumer Demand

Coca-Cola has been raising beverage prices throughout the past year to offset higher input costs. Prices rose 4% for full-year 2025, helping to drive overall performance.

But these price increases have weighed on inflation-hit U.S. consumers who are increasingly seeking cheaper pantry options. Unit case volumes rose just 1% in the fourth quarter, matching the growth rate from the previous three months.

For the full year, volumes were flat. The company relied entirely on pricing power to drive results.

Rival PepsiCo announced last week it would cut prices on key snacks like Lay’s and Doritos. The move came after consumers pushed back on several rounds of price hikes over recent years.

The timing creates pressure on Coca-Cola as it navigates a CEO transition. Veteran executive Henrique Braun is set to take over as chief executive on March 31.

Shifting Consumer Preferences Challenge Growth

Coca-Cola adjusted earnings came in at 58 cents per share, beating analyst estimates of 56 cents. But the revenue miss highlighted ongoing challenges in key markets.

Volume growth was flat in the Asia-Pacific region during the quarter. The company faces increasing competition from regional brands in the world’s most populous continent.

Coca-Cola has been trying to adapt to changing consumer preferences. The company is leaning on zero-sugar sodas, sports drinks, and bottled teas as U.S. consumers shift to low-sugar options.

The rise of appetite-suppressing weight-loss drugs has accelerated demand for healthier beverage choices. Coca-Cola has invested in products like protein-infused Fairlife milk to capture health-conscious consumers.

The company forecast annual adjusted profit per share growth of 7-8% for 2026. This came in slightly below analyst expectations of 7.9% growth.

Despite Tuesday’s premarket decline, Coca-Cola shares have risen about 12% in 2025. The stock has outperformed PepsiCo over the past few years.