TLDR
- Q1 EPS: $0.73 vs. $0.71 expected, up 1% year over year.
- Revenue: $11.22B vs. $11.14B forecast; organic revenue up 6%.
- North America volume down 3% due to misinformation backlash; global volume up 2%.
- 2025 guidance unchanged: 5–6% organic revenue growth, EPS growth 2–3%.
- Stock price: $72.63 (+1.16%) as of 1:53 PM EDT.
Coca-Cola (NYSE: KO) posted solid Q1 2025 results, with adjusted EPS of $0.73 topping expectations of $0.71. Revenue came in at $11.22 billion, slightly above analyst forecasts of $11.14 billion. Organic revenue rose 6%, supported by a 5% price/mix increase and a 2% rise in unit case volume.
Shares climbed 1.1% in early trading following the earnings report. At the time of writing, KO stock trades at $72.63. The company kept its full-year guidance intact, standing out from peers like PepsiCo and Procter & Gamble, which trimmed their outlooks.
Mixed Volume Trends Amid Controversy
While global demand remained steady, North American volumes dropped 3%. This decline was partly blamed on a viral video falsely accusing Coca-Cola of reporting Latino workers to immigration authorities. CEO James Quincey said the claims were false but admitted the controversy impacted sales.
Growth was strong in key international markets. China, Brazil, and India contributed to the 2% increase in global volumes. Coca-Cola Zero Sugar surged 14%, and sparkling soft drink volume rose 2%. Meanwhile, coffee dipped 2%, and sports drinks slipped 1%.
Margin Expansion and Currency Headwinds
Operating income jumped 71% year over year to $3.66 billion, benefiting from favorable marketing timing and cost controls. Comparable operating margin expanded to 33.8%, up 134 basis points. However, currency headwinds trimmed earnings by 5 percentage points.
Management noted that high inflation had a smaller impact than in previous periods, helping protect profitability despite flat or declining volumes in some categories.
Outlook for 2025 Holds Steady
Coca-Cola maintained its full-year forecast, anticipating organic revenue growth of 5–6% and EPS growth of 2–3%. Currency is expected to be a headwind, with a projected 5–6% drag on earnings. Free cash flow is estimated at $9.5 billion for 2025, with $11.7 billion in operating cash flow and $2.2 billion in capex.
Q2 2025 guidance includes a 3% expected currency headwind on revenue and 5–6% on EPS.
Is KO Stock a Buy Now?
Analysts remain optimistic. KO has a one-year price target average of $75.68, suggesting a 4.2% upside from the current price. Forecasts range from $59.60 to $85. The stock has risen 12.1% in the past three months, outpacing its industry’s 6.6% gain.
Coca-Cola’s resilience, pricing power, and global reach continue to support its long-term bullish case, even as volume challenges and trade tensions loom.
