Coca-Cola shares rose in premarket trading on Tuesday after the beverage giant reported third-quarter results that beat Wall Street estimates and reaffirmed confidence in its full-year and long-term guidance.
The company also announced a $2.6 billion transaction involving its African bottling operations, marking another step in refining its global portfolio.
Earnings and revenue beat expectations
Coca-Cola reported adjusted earnings of 82 cents per share for the third quarter, surpassing analyst expectations of 75 cents, according to FactSet.
Net revenue came in at $12.5 billion, slightly above the consensus estimate of $12.4 billion.
On an adjusted basis, the company’s earnings also topped projections tracked by LSEG, which anticipated 78 cents per share in profit and $12.39 billion in revenue.
The beverage maker’s net income attributable to shareholders rose to $3.7 billion, or 86 cents per share, up from $2.85 billion, or 66 cents per share, a year earlier.
Excluding one-time restructuring charges and other items, the company earned 82 cents per share.
Net sales climbed 5% to $12.46 billion, while organic revenue — which excludes the impact of acquisitions, divestitures, and foreign currency — increased by 6%.
The company said it remains on track to achieve 5% to 6% adjusted organic revenue growth in 2025, with adjusted earnings projected to rise 3% from $2.88 a share in 2024.
CEO James Quincey said the company’s ability to stay agile has helped it navigate a challenging global environment.
“While the overall environment has continued to be challenging, we’ve stayed flexible,” Quincey said in a statement.
“We’re confident we can deliver on our 2025 guidance while also working to achieve our longer-term objectives.”
Volume trends show modest recovery
After seeing a decline in the previous quarter, Coca-Cola’s unit case volume rose 1% in the third quarter, reflecting a modest rebound in global demand.
The company noted that this metric, which excludes the effects of pricing and foreign currency, provides a clearer view of consumer demand.
Volume in Latin America and North America — two key markets — remained flat during the quarter.
Company executives have previously acknowledged that lower-income US consumers have been reducing purchases amid inflationary pressures, though Coca-Cola is attempting to reach them with more affordable product options.
Globally, Coca-Cola’s water, sports, coffee, and tea segment showed the strongest performance.
Bottled water and sports drink volumes each grew 3%, while coffee and tea volumes increased 2%.
Meanwhile, sparkling soft drinks volume was unchanged, and the juice, value-added dairy, and plant-based beverage segment saw a 3% decline.
Strategic deal in Africa and outlook for 2026
In a separate announcement, Coca-Cola said it had reached an agreement with Gutsche Family Investments to sell a majority stake in Coca-Cola Beverages Africa to Coca-Cola HBC, its Switzerland-based bottling partner.
The $2.6 billion transaction is expected to close by the end of 2026.
Looking ahead, Coca-Cola reiterated its full-year forecast, expecting comparable earnings per share to rise 3% and organic revenue to grow between 5% and 6%.
The company also projected a slight tailwind from currency fluctuations to both revenue and earnings in 2026. A detailed outlook for the upcoming year will be provided with the fourth-quarter results.
Shares of Coca-Cola climbed nearly 2.7% in premarket trading following the earnings.
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