July 22, 2025
Coca-Cola Earnings: Coca-Cola said Tuesday that its latest quarterly revenue and earnings beat Wall Street expectations.
Strong demand across Europe helped balance softer volumes in some other regions. Even so, the stock fell slightly, slipping less than 1% in premarket trading.
Analysts surveyed by LSEG expected less. But Coca-Cola beat the Street. Adjusted earnings came in at 87 cents a share. Wall Street was looking for 83 cents.
Adjusted revenue reached $12.62 billion. Estimates were $12.54 billion. Coca-Cola’s Q2 net income attributable to shareholders was $3.81 billion.
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That’s 88 cents per share. It was $2.41 billion, or 56 cents per share, in the same quarter last year. Excluding asset impairments, restructuring charges, and other items, adjusted earnings were 87 cents per share.
Net sales grew by 1% to $12.54 billion. After excluding certain items, total revenue stood at $12.62 billion.
Organic revenue, which removes the impact of currency changes, acquisitions, and divestitures, climbed 5%.
Coca-Cola’s global unit case volume slipped 1% in the quarter. All divisions saw lower volume, except for the Europe, Middle East, and Africa region.
This metric excludes pricing and currency effects, giving a clearer picture of actual demand.
Coca-Cola executives say economic uncertainty and geopolitical tensions have dented consumer confidence in several markets. That has pressured sales.
Even so, some of those weaker markets showed improvement in the second quarter versus the prior quarter, CEO James Quincey told analysts on Tuesday’s earnings call.
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“Several markets that struggled in Q1 saw better volumes in the second quarter, including the U.S. and Europe,” Quincey said.
“Our strategies are showing results. This gives us more confidence that we can steer our performance,” he added.
In North America, overall volume dropped 1% as demand for Coca-Cola’s flagship soda softened.
However, the volume was still an improvement compared to the first quarter. “The consumer is still pretty resilient overall,” Quincey said.
“Total spending is holding up. We do see pressure on lower-income shoppers. So we’re leaning into affordability and targeted marketing around key occasions.”
Hispanic consumers pulled back starting in the first quarter after social media rumors claimed Coke reported undocumented workers to U.S. immigration authorities.
The company denied the allegations. Sales stayed soft until the end of June.
“We think that issue is behind us for now,” Quincey said.
“We think that issue is behind us for now,” Quincey said.
Latin America unit case volume fell 2% in the quarter. Asia-Pacific volume declined 3%. EMEA volume grew 3%. Globally, Coca-Cola’s sparkling soft drinks segment, which includes its flagship soda, saw volume dip 1%.
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The juice, value-added dairy, and plant-based drinks division recorded a 4% decline. For the water, sports, coffee, and tea segment, overall volume was flat.
Growth in coffee managed to offset weaker demand for sports drinks.
Coca-Cola plans to launch a cane sugar version of its signature cola in the U.S. this fall.
For the full year, the company tightened its guidance for comparable earnings per share growth to 3%, which is the upper end of its earlier range.
Coke also reaffirmed its forecast for 2025, expecting organic revenue growth between 5% and 6%.
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