Coca-Cola’s Revenue Growth Falls Short as Zero-Sugar Momentum Builds

Coca-Cola reported fourth-quarter results that fell short of revenue expectations, causing its shares to drop in premarket trading on Tuesday. However, its sugar-free products continued to become more popular with consumers.

The company reported adjusted earnings of 58 cents per share, slightly above Wall Street’s estimate of 56 cents. Net revenue increased by 2% to $11.8 billion, which was less than the $12.05 billion analysts expected. Organic sales grew 4.8%, just under the 5% growth the market predicted.

Shares dropped more than 3% in premarket trading, reducing the 12% gain they had made through Monday’s close.

Sugar-Free Proves Its Pull

Coca-Cola Zero Sugar was the standout performer this quarter, with unit volume up 13% from last year and growth in every region. This result highlights a wider move by consumers away from regular sugary drinks, a trend the company is working to take advantage of with new products and wider distribution.

Recently, the company expanded its flavored drinks by launching Coca-Cola Cherry Float and bringing back Diet Coke Cherry in the United States and Canada. It also announced it will phase out its frozen drink business, showing a stronger focus on its main and fastest-growing products.

Guidance Falls Slightly Short

For 2026, Coca-Cola expects organic revenue to grow by 4% to 5%, with the midpoint just below Wall Street’s 5% forecast. The company’s outlook for adjusted earnings per share growth of 7% to 8% matches what analysts expected.

This outlook is slightly lower than the targets for 2025, when Coca-Cola expected organic revenue growth of 5% to 6%. Currency changes of 1% to 2% and about a 1% impact from restructuring are expected to reduce reported results.

Restructuring and Leadership Transition

Alongside the revenue numbers, Coca-Cola is making bigger changes to its operations. The company has started restructuring, which includes cutting about 75 jobs at its headquarters. Even with efforts to control costs, marketing spending remains high as the company works to keep its brand visible in a more competitive market.

The company is also changing its international bottling network by selling franchises and forming new partnerships. This is a key part of its strategy to grow without heavy investments.

Coca-Cola is also getting ready for a leadership change. The current chief operating officer will become chief executive on March 31, taking over from the outgoing leader who has served for nine years. The new CEO has worked at the company for decades and has experience in important international markets like Latin America and China, which are still key to Coca-Cola’s long-term growth plans.

Defensive Appeal Intact, For Now

Despite Tuesday’s pullback, Coca-Cola has been one of the better performers in the consumer staples sector, with shares up about 21% over the past year. Investors are attracted to the stock because of its steady cash flow, worldwide distribution, and regular dividend, which make it popular among investors seeking safer investments. on both revenue and organic growth — however narrow — will likely prompt scrutiny over whether pricing power, the engine behind recent top-line growth, is beginning to lose some of its force as inflation moderates and volume recovery remains uneven across geographies.