The Hidden Number in Coca-Cola’s Earnings That Could Change Everything for Dividend Investors in 2026

Core Insights - Coca-Cola reported fourth-quarter results that met EPS expectations but fell short on revenue, primarily due to a $960 million non-cash impairment charge on its BODYARMOR trademark, reflecting slowing growth in the sports drink category and increased competitive pressure [3][8] Financial Performance - Revenue for the quarter was $11.82 billion, missing estimates by 4.6% compared to the expected $12.39 billion [8] - Operating income decreased by 32% year-over-year to $1.84 billion [8] - Net income for the quarter was reported at $2.27 billion [8] - Comparable currency neutral operating income grew by 13%, and global unit case volume increased by 1%, driven by strong performance in Brazil, the United States, and Japan [4] Strategic Outlook - Management provided guidance for 2026, projecting organic revenue growth of 4% to 5% and comparable EPS growth of 7% to 8%, with an anticipated 3% currency tailwind [5] - Free cash flow is expected to be approximately $12.2 billion [5] - The company announced the creation of a chief digital officer position to enhance digital transformation efforts [6] - Coca-Cola plans to close the sale of Coca-Cola Beverages Africa in the second half of 2026 [6] Dividend Information - Coca-Cola increased its dividends for the 63rd consecutive year, paying out $8.78 billion in dividends during 2025 [6][8]