Coca-Cola Company (NYSE: KO) shares moved higher on Wednesday after the beverage giant topped profit expectations and reiterated its confidence in steady growth ahead. Investors also took comfort in supportive analyst commentary that highlighted improving volume trends and margin expansion.
The company reported fourth-quarter adjusted earnings per share of 58 cents, beating the analyst consensus estimate of 56 cents. Quarterly sales of $11.80 billion (+2% year over year) missed the Street view of $12.026 billion.
The company expects to deliver organic revenue (non-GAAP) growth of 4% to 5% in fiscal 2026.
Coca-Cola forecasts fiscal 2026 adjusted EPS of $3.21 to $3.24, compared with analysts' estimates of $3.23.
Analysts' Take
BofA Securities analyst Peter T. Galbo reiterated the Buy rating on the stock, with a price objective of $85, supported by expected global consumption tailwinds and steady fundamentals.
Galbo said Coca-Cola ended the year on a solid footing as volumes grew modestly despite tough comparisons and organic sales improved. He noted volumes strengthened sequentially through the quarter, while both gross and operating margins expanded year over year.
Shares recovered intraday but finished lower as investors focused on weaker price and mix performance and a lighter earnings outlook.
Galbo said price and mix faced pressure from largely one-time unfavorable items and should normalize in the coming fiscal year. The analyst added that operating profit and earnings appear closer to long-term targets after adjusting for equity income losses tied to Coca-Cola.
Galbo kept his fiscal 2026 earnings estimate largely unchanged, citing calendar shifts and expected shipment timing differences across quarters.
He expects softer unit case trends early in the year, followed by stronger performance during easier comparison periods later.
The outlook also factors in planned divestitures, including CCBA and select juice and dairy operations in Nigeria.
He said Coca-Cola's ongoing shift away from bottling and distribution could improve margins and returns on invested capital over time.
KO Price Action: Coca-Cola shares are trading higher by 2.56% to $78.79 at last check Wednesday.