The Coca-Cola Company

KO
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$12.5B
Q1 2026 · +12% YoY
TTM ROIC
15.5%
FY2025 · NOPAT / Invested Capital (incl. goodwill & intangibles) · WACC ~8% · Moat spread +7.5pp

Financial Snapshot


ticker: KO step: 04 generated: 2026-05-12 source: quick-research

The Coca-Cola Company (KO) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 FY2025 YoY (25v24)
Revenue $43.0B $45.8B $47.1B $47.9B +1.9%
Organic Revenue Growth +16% +12% +12% +6% (mid-pt)
Non-GAAP Operating Margin ~28% ~28% 24.0% 24.4% +40 bps
Net Income $9.5B $10.7B $10.6B ~$13.1B +24%
EPS (diluted, GAAP) $2.19 $2.47 $2.46 $3.05 +24%
Comparable EPS (non-GAAP) $2.48 $2.69 $2.88 ~$3.05 +6%

Note: Reported revenue growth (~2%) materially lags organic growth (~6%) due to FX headwinds (~3–4%) and divestitures of refranchising businesses.

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$13.5B
Capex ~$2.1B
Free Cash Flow (reported) $5.3B
Adjusted Free Cash Flow (ex. fairlife one-time contingent payment) ~$11.4B
Dividends Paid $8.8B
Cash & Investments ~$15B
Total Debt ~$45B

Capital Return

  • 63 consecutive years of dividend increases (one of the longest streaks in US equities — "Dividend King")
  • FY2025 dividend payout: $8.8B
  • Buybacks: ~$3B annually, modest relative to FCF — capital priority is dividend + bolt-on M&A
  • Dividend yield: ~2.8–2.9% (May 2026)

Key Ratios (approximate, May 2026)

  • P/E: ~24x | EV/EBITDA: ~21x | FCF Yield (adj): ~3.5%
  • Revenue Growth (organic): ~6% | Non-GAAP Operating Margin: ~24% | EBITDA Margin: ~32%
  • Capex / Revenue: ~4.5% (asset-light franchise model)

Volume / Mix Metrics

  • 18 consecutive quarters of value share gains in non-alcoholic ready-to-drink
  • Double-digit volume + value growth on Coca-Cola Zero Sugar
  • fairlife crossed $1B retail sales; $650M Monroe County NY plant coming mid-decade
  • Costa RTD coffee expanding retail footprint

Growth Profile

KO is a textbook through-cycle compounder. Organic revenue growth has compounded at 6%+ for several years (mid-single digits volume + low-single-digits price/mix), but reported growth is suppressed by chronic FX translation headwinds and a years-long refranchising of bottling operations (which converts high-revenue, low-margin bottling sales into lower-revenue, higher-margin concentrate sales). Operating margin compressed in 2024 due to refranchising mix and emerging-market price normalization, but has now stabilized and started expanding again (+40 bps in FY2025). The fairlife and Costa platforms are the principal growth engines beyond legacy sparkling.

Forward Estimates

2026 guidance: Organic revenue growth 4–5% with a ~1% FX tailwind and ~4% headwind from acquisitions/divestitures (net reported revenue roughly flat). Adjusted EPS growth 7–8%. FCF projected to rise to $12.2B (+7% from adjusted 2025), with operating cash flow ~$14.4B less ~$2.2B capex. Bull-side scenarios pencil in continued portfolio premiumization (smartwater, BodyArmor, fairlife) and emerging-market RTD coffee expansion. Bear-side scenarios bake in GLP-1 / health-mandate-driven sparkling decline, plastic-packaging regulation costs, and persistent FX volatility.

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $KO.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/ko/financials/md · → thesis · → memo