Coca-Cola Q3 Earnings & Revenues Beat Estimates on Improved Pricing

The Coca-Cola Company KO has reported third-quarter 2025 results, with the top and bottom lines surpassing the Zacks Consensus Estimate. The company’s revenues and earnings per share (EPS) improved year over year. The results have benefited from continued business momentum, aided by enhanced pricing across markets. This quarter’s results once again highlight the strength of KO’s resilient, all-weather strategy.Coca-Cola has reported a comparable EPS of 82 cents in the third quarter, up 6% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 78 cents. Unfavorable currency translations hurt the comparable EPS by 6 percentage points. Comparable currency-neutral earnings per share rose 9% year over year.Revenues of $12.46 billion grew 5% year over year and beat the Zacks Consensus Estimate of $12.43 billion. Organic revenues rose 6% from the prior-year quarter, led by growth across all segments. Coca-Cola’s reported revenues also benefited from an improved price/mix.For the third quarter of 2025, KO gained a global value share in the total non-alcoholic ready-to-drink beverages category, driven by share gains in Brazil and Argentina.Shares of Coca-Cola improved 2.6% in the pre-market trading session following the better-than-expected third-quarter results. The Zacks Rank #4 (Sell) stock has risen 10% in the year-to-date period compared with the industry’s growth of 6.1%. Image Source: Zacks Investment Research Detailed Picture of KO’s Q3 Volume & PricingIn the reported quarter, concentrate sales were flat year over year, while the price/mix improved 6%. The price/mix benefited from pricing actions across the marketplace and a favorable mix.In the third quarter, concentrate sales were 1 percentage point behind the unit case volume due to the timing of concentrate shipments. Coca-Cola’s total unit case volume rose 1% year over year in the third quarter, led by growth in Central Asia, North Africa, Brazil and the U.K.Our model predicted year-over-year organic revenue growth of 6.9% for the third quarter, with an 8.2% gain from the price/mix and a 1.4% decline in the concentrate sales volume. Coming to the cluster-category performance, the unit case volume was flat year over year for the sparkling soft drinks category. The trademark Coca-Cola’s unit volume rose 1%, led by increases in Europe, the Middle East and Africa (EMEA), and the Asia Pacific. Coca-Cola Zero Sugar advanced 14%, aided by growth in all geographic operating segments. The unit case volume for Diet Coke/Coca-Cola Light improved 2%, primarily driven by growth in North America and the Asia Pacific. The sparkling flavors category declined 1% year over year, backed by a decline in the Asia Pacific, offset by growth in EMEA.CocaCola Company (The) Price, Consensus and EPS Surprise  CocaCola Company (The) price-consensus-eps-surprise-chart | CocaCola Company (The) QuoteVolume for juice, value-added dairy and plant-based beverages was down 3% in the third quarter due to a decline in the Asia Pacific, offset by an improvement in Latin America.Unit volume for the water, sports, coffee and tea category was up 3% year over year in the third quarter. Coca-Cola witnessed 3% volume growth in the water category, driven by growth across all segments. Sports drinks rose 3%, driven by gains in North America. The coffee business improved 2% due to growth in the Asia Pacific and EMEA. The tea volume was up 2%, backed by growth in EMEA and Latin America.Peek Into KO’s Segmental DetailsReported revenues rose 4% year over year for North America, 11% for the Asia Pacific, 10% for EMEA and 2% for Bottling Investments. However, revenues declined 4% for Latin America. Organic revenues improved 7% year over year, each in the Asia Pacific, Bottling Investments and EMEA. Meanwhile, organic revenues were up 4% each in North America and Latin America.Analyzing Coca-Cola’s Q3 MarginsIn dollar terms, the operating income soared 59% year over year to $3.98 billion, including a 4-point impact of currency headwinds. Comparable operating income rose 8% year over year to $3.96 billion. Comparable currency-neutral operating income advanced 15% on strong organic revenue growth across most segments, effective cost management and the timing of marketing investments.The operating margin of 32% in the third quarter expanded significantly from 21.2% in the prior-year quarter. The comparable operating margin expanded 115 bps to 31.9%. The comparable currency-neutral operating margin expanded 270 bps to 33.4%.Our model predicted the third-quarter adjusted operating margin to expand 80 bps year over year to 31.5%, driven by a 30-bps increase in the gross margin and a 40-bps decline in the SG&A expense rate.KO’s Guidance for 2025Management has reiterated its organic revenue guidance for 2025 and updated its EPS view. It anticipates organic revenue growth of 5-6% for 2025. Comparable net revenues are expected to include a 1-2% currency headwind based on current rates and hedge positions (compared with 2-3% currency headwind expected earlier). The guidance also includes a 1% negative impact of acquisitions, divestitures and structural changes. The company anticipates an underlying effective tax rate of 20.7% for 2025.Comparable currency-neutral EPS for 2025 is expected to increase 8% year over year. The company anticipates comparable EPS growth of 3% for 2025 from the $2.88 reported in 2024. Comparable EPS growth is expected to include currency headwinds of 5%. The EPS guidance also includes a 1% negative impact of acquisitions, divestitures and structural changes.Management envisions an adjusted free cash flow of at least $9.8 billion for 2025, including $12 billion in cash flow from operations. Capital expenditure is likely to be $2.2 billion.For fourth-quarter 2025, comparable revenues are expected to include a slight currency tailwind. Comparable EPS is estimated to include a 4-5% currency headwind.For 2026, comparable revenues and comparable EPS are expected to include a slight currency tailwind, each. Stocks to ConsiderWe have highlighted three better-ranked stocks from the Consumer Staples sector, namely United Natural Foods UNFI, Ambev ABEV and PepsiCo Inc. PEP.United Natural Foods is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for UNFI’s fiscal 2026 sales and earnings indicates growth of 2.5% and 167.6%, respectively, from the previous year’s reported figures. United Natural Foods has a trailing four-quarter average earnings surprise of 416.2%.Ambev is engaged in producing, distributing and selling beer, carbonated soft drinks and other non-alcoholic and non-carbonated products in many countries across the Americas. It presently has a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Ambev’s 2025 sales indicates growth of 3.7% from the prior-year reported level. ABEV delivered a trailing four-quarter negative earnings surprise of 4.2%, on average.PepsiCo is one of the leading global food and beverage companies. PEP currently has a Zacks Rank #2.The Zacks Consensus Estimate for PepsiCo’s 2025 sales implies growth of 1.7% from the previous year’s reported numbers. Meanwhile, PEP’s earnings estimates indicate a year-over-year decline of 0.7%. PEP delivered a trailing four-quarter negative earnings surprise of 1.1%, on average.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report PepsiCo, Inc. (PEP): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report Ambev S.A. (ABEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks