Coca-Cola (KO) Q3 2025 earnings

Coca-cola reported quarterly earnings and revenue that topped expectations, but the beverage giant said that demand for its drinks is still soft but improving.

“After a slower start, we ended with improved performance during the quarter,” CFO John Murphy said on the company‘s conference call.

Shares of Coke closed up 4% on Tuesday.

Here’s what the company reported compared with what Wall Street analysts surveyed by LSEG were expecting:

• Earnings per share: 82 cents adjusted vs. 78 cents expected
• Revenue: $12.41 billion adjusted vs. $12.39 billion expected

Coke reported third-quarter net income attributable to shareholders of $3.7 billion, or 86 cents per share, up from $2.85 billion, or 66 cents per share, a year earlier.

Excluding restructuring charges and other items, Coke earned 82 cents per share.

Net salesrose 5% to $12.46 billion. Coke’s organic revenue, which strips out acquisitions, divestitures and foreign currency, increased 6%.

The company’s unit case volume rose 1%, a reversal from last quarter’s decline. The metric excludes the impact of pricing and foreign currency to reflect demand.

But volume in both Latin America and North America, two key markets, was flat for the quarter.

Coke executives have said that low-income consumers in the U.S. have been buying fewer of its products. The company is also seeing higher traffic from dollar stores, another sign that low-income consumers are feeling pinched, CEO James Quincey said on CNBC’s “Squawk on the Street” on Tuesday. Coke is now trying to target them with “affordable” options, like mini cans of its soda, which have a lower price tag but cost more per ounce.

“Despite ongoing differences in spending between income groups and slower traffic across channels, (North American) volume was flat and improved sequentially for the second consecutive quarter,” Coke Chief Operating Officer Henrique Braun said on the company’s conference call.

A similar dynamic is occurring in Europe, which also saw volume decline, according to executives. The broader Europe, Middle East and Africa division reported volume growth of 3%.

However, Coke’s pricier brands, like Fairlife and Smartwater, have been bright spots for the company, showing that high-income consumers are still willing to pay more for premium drinks.

Worldwide, Coke saw the largest volume growth from its water, sports, coffee and tea segment. Its bottled water and sports drinks both saw volume increase 3%, while coffee and tea reported volume growth of 2%. The company’s sparkling soft drinks volume was flat for the quarter, while its juice, value-added dairy and plant-based beverage segment reported that volume shrank 3%.

The company reiterated its full-year forecast. Coke is expecting comparable earnings per share to rise 3% and organic revenue to increase 5% to 6%.

Looking ahead to 2026, Coke is projecting a slight tail wind to both its revenue and comparable earnings from currency fluctuations. The company will provide a full forecast for the upcoming year in its fourth-quarter earnings report.