Feb 10 (Reuters) – Coca-Cola on Tuesday forecast muted revenue growth for 2026 after missing fourth-quarter expectations, as demand for sodas weakened in North America and Asia, sending its shares down nearly 4% in premarket trading.
The company, which is in the middle of a CEO transition with veteran Henrique Braun set to take over on March 31, has been raising beverage prices to offset higher input costs, but that has weighed on the budgets of inflation-hit U.S. consumers looking for cheaper pantry options.
Rival PepsiCo said last week it would cut prices on key snacks such as Lay’s and Doritos as consumers pushed back against several rounds of price hikes over the last few years.
Coca-Cola’s unit overall case volumes rose 1% in the quarter, in line with the growth it reported in the preceding three months. They were flat for the full year, while price, which was up 4% for the year, helped drive performance.
Coca-Cola targets 2026 organic revenue to grow 4% to 5%, compared with estimates of 5.3% growth and a 5% rise in 2025.
“(The forecast) reads conservative, but is appropriate for the start of the year. Street likely wanted more,” said Jefferies analyst Kaumil Gajrawala in a note.
Coca-Cola has also leaned on growth in zero-sugar sodas, sports drinks and bottled teas as U.S. consumers shift to low-sugar options amid a higher adoption of appetite-suppressing weight-loss drugs.
PepsiCo said it was betting on portion control to drive demand for its snacks. Coca-Cola has invested in products such as its protein-infused Fairlife milk to capture demand from health-conscious consumers.
Volume growth was flat in the Asia-Pacific region in the quarter as the company battles a growing shift to regional brands.
Coca-Cola reported fourth-quarter revenue of $11.82 billion, compared with estimates of $12.03 billion. On an adjusted basis, it earned 58 cents per share, compared with estimates of 56 cents, according to data compiled by LSEG.
It forecast annual adjusted profit per share growth of 7% to 8%, compared with expectations of 7.9% rise.
Coca-Cola’s shares have risen about 12% in 2025 and have outperformed PepsiCo over the past few years.
(Reporting by Juveria Tabassum and Angela Christy in Bengaluru; Editing by Arun Koyyur)
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