Coca-Cola stock sinks on disappointing outlook as Coke Zero, water power surprise sales increase

Coca-Cola (KO) banal fell arsenic overmuch arsenic 4% aboriginal Tuesday aft the institution offered what CEO James Quincey called a "prudent" outlook for 2026 arsenic it aims to reverse unit connected planetary sales.

"We've taken what we deliberation is simply a realistic, but prudent, attack comparative to a fig of planetary markets [where] we request to spot amended done the people of 2026," Quincey told Yahoo Finance.

In the 4th quarter, integrated gross grew 5% crossed the company's geographies, outpacing the 4.8% maturation expected by Wall Street. For 2026, the institution expects integrated income to turn 4%-5%, beneath the 5% maturation expected by analysts, according to Bloomberg data. Coca-Cola's adjusted net are expected to turn successful a scope of 7%-8% this twelvemonth aft increasing 9% successful 2025.

Some regions wherever the institution is experiencing unit see China, India, and Mexico, wherever a brushed portion taxation was precocious implemented. Sales successful its Asia Pacific portion were level successful the 4th quarter.

Read much astir Coca-Cola's banal moves and today's marketplace action.

In North America, the institution said volumes grew 1% portion prices were up 4% successful the 4th fourth arsenic consumers continued to crook to less-sugary options.

"You spot spot [in] Coke Zero, adjacent Diet Coke is growing," Quincey said. Across each geographies, volumes for Coca-Cola Zero Sugar were up 13% successful the 4th fourth and 14% for the afloat year. Diet Coke and Coca-Cola Light measurement was up 2% for the 4th and level for the year.

"The macromolecule — Fairlife, Core Power — is growing," Quincey said. "The hydration ... BodyArmor is increasing measurement and gaining share. Similarly with immoderate of the water," helium added, regarding the US market.

As zero oregon low-sugar sodas proceed to summation share, the institution tested a Simply Pop prebiotic soda to vie with PepsiCo's $2 cardinal Poppi acquisition, but it's dilatory going, Quincey said.

"It's inactive precise aboriginal days ... We leveraged immoderate of our learnings from Coca-Cola Plus from Japan ... we're inactive trying to larn what truly makes that subcategory tick," helium said.

As for however bifurcated user habits successful the US are impacting the business, Quincey said "total spending is holding up," but consumers are picking and choosing however galore and wherever they're buying."

"Lower-income consumers are doing value-based shopping," Quincey said. "Whether that's the dollar transmission oregon immoderate different channel, and truthful we've had a wide affordability strategy implicit the past fewer years, and we deliberation that's moving for us."