Coca-Cola reports Q3 results ahead of expectations
By Josh White
Date: Tuesday 21 Oct 2025
(Sharecast News) - Coca-Cola reported third-quarter results ahead of expectations on Tuesday, with net revenue up 5% to $12.5bn and organic revenue up 6% as a 6% gain in price-mix offset flat concentrate sales and modest volume growth.
Global unit-case volume returned to expansion, rising 1% after slipping last quarter, helped by growth in water, sports, coffee and tea, while sparkling was flat and juice, value-added dairy and plant-based beverages declined.
Profitability strengthened meaningfully.
Operating income rose 59%, lifting reported operating margin to 32.0% from 21.2% a year earlier, while comparable operating margin improved to 31.9% from 30.7% on pricing, mix and cost control despite higher marketing and currency headwinds.
GAAP earnings per share increased 30% to $0.86, including a four-point currency drag; comparable earnings rose 6% to $0.82 per share, topping consensus.
Management said the company gained value share in total non-alcoholic ready-to-drink beverages.
Chief executive James Quincey said the environment "has continued to be challenging," but added that Coca-Cola had "stayed flexible - adapting plans where needed and investing for growth".
He said the company was "offering choice across our total beverage portfolio" and leveraging its franchise system to strengthen category leadership, reiterating confidence in delivering 2025 guidance.
Portfolio performance reflected shifting consumer preferences toward functionality and lower-sugar options.
Coca-Cola highlighted continued traction in zero-sugar soft drinks, sports beverages under its Powerade and Bodyarmor 'dual-brand' strategy, and ready-to-drink tea, where Fuze Tea's retail value growth outpaced the category.
In Mexico, Santa Clara became value-share leader in value-added dairy with 13% volume growth, while Minute Maid Zero Sugar expanded from North America into parts of Asia Pacific with solid early results.
Industry reports also pointed to smaller package sizes supporting affordability and volumes as pricing remained firm.
Coca-Cola maintained its 2025 outlook for comparable earnings per share growth of about 3% and organic revenue growth of 5% to 6%.
The company said year-to-date operating cash flow and free cash flow were $3.7bn and $2.4bn, respectively, reflecting the $6.1bn contingent consideration paid in the first quarter related to the 2020 fairlife acquisition; free cash flow excluding that payment was $8.5bn year-to-date.
Strategically, Coca-Cola said it was continuing to reshape its bottling footprint.
Coca-Cola HBC agreed to acquire a controlling interest in Coca-Cola Beverages Africa from the company and Gutsche Family Investments, a move Coca-Cola said should support CCBA's next growth phase.
In India, the company sold a 40% stake in Hindustan Coca-Cola Holdings to Jubilant Bhartia Group, another step in refranchising to "trusted, capable and motivated" partners.
At 0923 EDT (1423 BST), shares in the Coca-Cola Company were up 3.01% in premarket trading in New York, at $70.52.
Reporting by Josh White for Sharecast.com.
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