Why Coca-Cola Was Falling Today

Core Viewpoint - Coca-Cola's stock experienced a decline following its earnings report, reflecting mixed results that did not meet investor expectations despite some positive indicators [1][7]. Financial Performance - In Q4, Coca-Cola's revenue grew by 2.6% to $11.8 billion, which was below estimates, while adjusted earnings per share increased by 6% to $0.58, surpassing expectations by $0.02 [2]. - On a constant-currency basis, revenue growth was 5%, indicating stronger performance when excluding currency fluctuations [3]. Market Position and Volume - Coca-Cola gained market share in the non-alcoholic ready-to-drink beverage sector both in the quarter and for the full year [3]. - Case volume increased across all regions except Asia, where it remained flat, with North America showing a positive 1% volume growth after previous declines [3]. Future Outlook - Management anticipates organic revenue growth of 4% to 5% and adjusted EPS growth of 7% to 8% for 2026 [4]. Stock Valuation and Investor Sentiment - Coca-Cola's shares are currently trading at 23.8 times the 2026 earnings estimates, which is considered reasonable for a leading consumer staple stock [8]. - The stock had appreciated 11.5% year-to-date prior to the earnings report, suggesting that the recent decline may be a profit-taking reaction from investors [7].