COCA COLA CO (KO) Earnings History

COCA COLA CO - Q3 FY2025 Earnings

Filed at: Oct 20, 2025, 8:00 PM EDT|Read from source

EXECUTIVE SUMMARY

Coca-Cola reported a challenging but resilient third quarter, demonstrating adaptability by leveraging its franchise model and diverse portfolio to navigate a difficult environment and strengthen its market position.

POSITIVE HIGHLIGHTS

  • •

    Net revenues grew 5% to $12.5 billion, with organic revenues (non-GAAP) growing 6%, driven by 6% growth in price/mix.

    positive
  • •

    Operating income grew 59% to $3.98 billion, with comparable currency neutral operating income (non-GAAP) growing 15% due to organic revenue growth and cost management.

    positive
  • •

    Diluted EPS grew 30% to $0.86, and comparable EPS (non-GAAP) grew 6% to $0.82.

    positive
  • •

    The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.

    positive

CONCERNS & RISKS

  • •

    Concentrate sales were 1 point behind unit case volume due to timing of shipments, impacting revenue recognition.

    attention
  • •

    Comparable operating margin (non-GAAP) expansion was partially offset by an increase in marketing investments and currency headwinds.

    attention
  • •

    Comparable EPS (non-GAAP) growth was impacted by a 6-point currency headwind.

    negative
  • •

    Unit case volume was flat in North America and Latin America, indicating a lack of organic volume growth in key markets.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$12.46B
+5.0%
Prior year: $11.85B
Annual (YTD)
$36.12B
N/A
Prior year: $35.52B
Net Income
Quarterly
$3.70B
+30.0%
Prior year: $2.85B
Annual (YTD)
$10.84B
N/A
Prior year: $8.44B
EPS (Diluted)
Quarterly
$0.86
+30.3%
Prior year: $0.66
Annual (YTD)
$2.51
N/A
Prior year: $1.95
Operating Income
Quarterly
$3.98B
+59.0%
Prior year: $2.51B
Annual (YTD)
$11.92B
N/A
Prior year: $7.28B
EPS (Basic)
Quarterly
$0.86
+30.3%
Prior year: $0.66
Annual (YTD)
$2.52
N/A
Prior year: $1.96

MARGIN ANALYSIS

Gross Margin
Current Quarter
61.5%
Prior Year
60.7%
YoY Change
+80 bps
Operating Margin
Current Quarter
32.0%
Prior Year
21.2%
YoY Change
+1080 bps
Net Margin
Current Quarter
29.7%
Prior Year
24.0%
YoY Change
+570 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY 2025

organic_revenue
$5.0M—$6.0M
Mid-point: $5.5M
"No Update"
comparable_net_revenues
"Expects a 1% to 2% currency headwind and an approximate 1% headwind from acquisitions, divestitures and structural changes."
underlying_effective_tax_rate
"Updated from 20.8%."
comparable_currency_neutral_eps
$8.00
"Approximately 8% growth."
comparable_eps
$3.00
"Approximately 3% growth versus $2.88 in 2024. Expected to include an approximate 5% currency headwind and an approximate 1% headwind from acquisitions, divestitures and structural changes."
free_cash_flow_excluding_fairlife_contingent_consideration
"Updated from $9.5 billion. Consists of cash flow from operations of approximately $12.0 billion, less capital expenditures of approximately $2.2 billion."

FY 2026

comparable_net_revenues
"Expected to include a slight currency tailwind."
comparable_eps
"Expected to include a slight currency tailwind. Full year 2026 guidance will be provided with Q4 earnings."

Q4 2025

comparable_net_revenues
"Expected to include a slight currency tailwind."
comparable_eps
"Expected to include a 4% to 5% currency headwind."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q3 2025
Other items impacting comparability (net decrease to non-GAAP income before income taxes)
Includes adjustments for economic hedging activities and unrealized gains/losses on equity securities.
$49M
$0.03 per share
Q3 2024
Other items impacting comparability (net increase to non-GAAP income before income taxes)
Includes adjustments for economic hedging activities and unrealized gains/losses on equity securities.
+$119M
$0.03 per share
Q3 2024
Transaction Gains/Losses
Primarily related to remeasurement of contingent consideration for fairlife acquisition and sale of interest in Coke Consolidated.
+$921M
$0.10 per share
Q3 2024
Asset Impairments
Primarily related to trademark impairment in Latin America.
+$87M
$0.02 per share
Q3 2024
Restructuring charges
Related to productivity and reinvestment program.
+$34M
$0.01 per share
Q3 2025
Certain Tax Matters
Primarily related to changes in uncertain tax positions and discrete tax items.
$442M
$0.10 per share
Q3 2024
Certain Tax Matters
Primarily related to changes in uncertain tax positions and discrete tax items.
$45M
$0.01 per share
Total Impact
+$625M$0.02 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

The company is staying flexible and adapting plans to invest for growth in a challenging environment.

— COCA COLA CO, Q3 FY2025 2025 Earnings Call

Offering choice across the total beverage portfolio and leveraging the franchise model are key to gaining ground and strengthening leadership.

— COCA COLA CO, Q3 FY2025 2025 Earnings Call

The company is confident in delivering on 2025 guidance and achieving longer-term objectives.

— COCA COLA CO, Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Coca Cola Zero Sugar Volume
14
+14.0% YoY
percent
Coffee Volume
2
+2.0% YoY
percent
Diet Coke Volume
2
+2.0% YoY
percent
Juice Value Added Dairy Plant Based Volume
-3
-3.0% YoY
percent
Sparkling Flavors Volume
-1
-1.0% YoY
percent
Sports Drinks Volume
3
+3.0% YoY
percent
Tea Volume
2
+2.0% YoY
percent
Trademark Coca Cola Volume
1
+1.0% YoY
percent
Unit Case Volume
1
+1.0% YoY
percent
Water Sports Coffee Tea Volume
3
+3.0% YoY
percent
Water Volume
3
+3.0% YoY
percent

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.