NEW YORK, Feb 10, 2026, 12:54 (EST) — Regular session
Coca-Cola shares dropped roughly 2% to $76.37 in midday trading Tuesday, following the release of its 2026 outlook with quarterly earnings. PepsiCo and Keurig Dr Pepper also slipped modestly.
This update matters because Coke has long been seen as a steady “defensive” stock, but now the market is zeroing in on consumer staples with one key question: can they grow without relying on price hikes? That question hits harder when volumes aren’t moving.
Henrique Braun, set to become CEO at the end of March, stated, “We need to get closer to the consumer and improve our speed to market,” as shifting trends toward low-sugar products and weight-loss drugs change consumer behavior. Fourth-quarter revenue hit $11.82 billion, falling short of the $12.03 billion estimate, while adjusted earnings of 58 cents per share surpassed expectations, per LSEG data. Jefferies analyst Kaumil Gajrawala described the forecast as conservative, adding the “Street likely wanted more.” Reuters
Coke reported a 2% increase in net operating revenues to $11.82 billion for the quarter, with global unit case volume — their case-based sales metric — up 1%. Comparable EPS, which excludes one-time items, came in at 58 cents. Operating income dropped 32%, weighed down by a $960 million non-cash impairment charge related to the BodyArmor trademark, according to a filing. Looking ahead to 2026, Coke expects organic revenue growth of 4%-5%, excluding currency effects and major portfolio shifts, alongside comparable EPS growth of 7%-8%. The company also anticipates roughly $12.2 billion in free cash flow on a non-GAAP basis. This forecast assumes the pending sale of Coca-Cola Beverages Africa will close in the second half, pending regulatory approval.
The BodyArmor charge is an accounting write-down. It won’t impact cash flow immediately, but it suggests that earlier growth projections for the brand have softened.
Traders will continue to dissect the details. How much growth still hinges on price, and if case volumes can hold steady when shoppers start pushing back or trading down.
Another wave of consumer belt-tightening or tougher rivals in rapidly expanding markets might push the company into deeper discounting and dent sales volumes. On top of that, currency fluctuations remain a major wildcard for a business operating nearly worldwide.
Investors will hear from Coke at the CAGNY 2026 Conference on Feb. 17, a key event that frequently signals upcoming shifts in pricing, volumes, and product strategies for the spring.
