The Coca-Cola Company (KO) Stock: Q3 Earnings Beat with 5% Revenue Growth and Strong Operating Margins

TLDR

• Q3 2025 net revenue rose 5% to $12.5 billion, with organic growth of 6%.
• Operating income surged 59%, while operating margin expanded to 32%.
• EPS grew 30% to $0.86, beating expectations despite currency headwinds.
• Strong global unit case volume growth of 1% and continued value share gains.
• KO stock jumped 3.8% to $71.09 on upbeat results and guidance confidence.

The Coca-Cola Company (KO), trading at $71.09 as of October 21, 2025, reported solid third-quarter results, showcasing strong revenue and earnings growth.

The Coca-Cola Company, KO

Net revenue climbed 5% to $12.5 billion, while organic revenue grew 6%, driven by a 6% improvement in price/mix as global unit case volume increased 1%.

Operating income rose 59% year-on-year, while comparable currency-neutral operating income advanced 15%. The company achieved a robust operating margin of 32.0%, up from 21.2% in the prior year, reflecting cost discipline, favorable pricing, and efficiency improvements.

Profit Growth and EPS Performance

Earnings per share (EPS) jumped 30% to $0.86, while comparable EPS (non-GAAP) increased 6% to $0.82, both outperforming expectations despite a 4-6 point currency headwind. Coca-Cola’s results highlight its resilience in navigating a complex macroeconomic backdrop while delivering consistent profit growth.

CEO James Quincey credited the quarter’s strength to flexibility, brand innovation, and the company’s diversified beverage portfolio. He reaffirmed confidence in achieving Coca-Cola’s 2025 financial guidance and long-term growth targets.

Revenue and Market Share Gains

The company’s value share in total nonalcoholic ready-to-drink beverages (NARTD) improved during the quarter, supported by new product innovations and pricing power. Coca-Cola’s franchise business model continues to strengthen its market presence, leveraging global reach and local expertise.

The quarter’s performance benefited from broad-based category strength. The ready-to-drink tea portfolio maintained global leadership with Fuze Tea growing retail value five times the industry average. In the sports category, Powerade and BODYARMOR drove gains in value share and volume growth. Meanwhile, fairlife and Santa Clara brands boosted performance in the value-added dairy segment.

Strategic Moves and Refranchising Progress

Coca-Cola made key structural moves to reinforce its global franchise network. Coca-Cola HBC AG entered into an agreement to acquire a controlling stake in Coca-Cola Beverages Africa, marking a significant refranchising milestone. In India, the company sold a 40% stake in Hindustan Coca-Cola Holdings Pvt. Ltd. to Jubilant Bhartia Group, further aligning with its asset-light growth strategy.

Year-to-date cash flow from operations reached $3.7 billion, while free cash flow excluding the fairlife payment was $8.5 billion, underscoring solid liquidity and cash generation.

Outlook and Market Reaction

Coca-Cola reaffirmed its 2025 guidance, projecting 5%–6% organic revenue growth and 3% comparable EPS growth versus 2024. The company expects to generate at least $9.8 billion in free cash flow excluding the fairlife payment, up from prior guidance.

Shares of Coca-Cola gained 3.88% following the announcement, reflecting investor optimism about its profitability, innovation strategy, and ability to manage currency and cost pressures effectively.

With its broad beverage portfolio, resilient demand, and disciplined execution, Coca-Cola remains on track to achieve sustainable earnings growth heading into 2026.

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