The Coca-Cola Company (KO Quick QuoteKO - Free Report) is slated to report third-quarter 2025 earnings on Oct. 21, before the opening bell. The company is expected to register year-over-year top and bottom-line growth when it posts third-quarter numbers.

The Zacks Consensus Estimate for revenues is pegged at $12.4 billion, implying 4.9% growth from the year-ago quarter's reported figure. The consensus estimate for earnings is pegged at 78 cents per share, indicating 1.3% growth from the prior-year quarter’s reported figure. The consensus mark for earnings has moved up by a penny in the past 30 days.

The Atlanta, GA-based company has been reporting steady earnings outcomes, as evident from its positive top and bottom-line surprise trends in the trailing 10 quarters. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.9%, on average. On the last reported quarter’s earnings call, the company registered an earnings surprise of 4.8%. Given its positive record, the question is, can KO maintain its momentum?

Earnings Whispers for Coca-Cola

Our proven model does not conclusively predict an earnings beat for KO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Coca-Cola has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.38%. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Trends in Focus Ahead of KO's Q3 Earnings Release

Coca-Cola’s third-quarter 2025 performance is expected to have faced notable volume pressure in key markets, reflecting evolving consumer behavior and economic challenges, particularly in North America and Europe. The company is witnessing soft volumes as low-income consumers remain value-conscious amid inflationary pressures. These widespread volume challenges signal waning consumer momentum, particularly in lower-income groups.

While Coca-Cola continues to rely on price/mix gains to support revenues, the persistence of volume softness raises concerns about sustained demand, making recovery efforts in lagging regions even more critical.

Coca-Cola’s significant international presence exposes it to foreign currency risks. Adverse foreign currency rates are likely to have impacted KO’s third-quarter 2025 results. Currency headwinds, higher taxes and rising interest costs continue to be concerning. 

For third-quarter 2025, the company expects comparable revenues to include a 1% currency headwind. Comparable EPS is estimated to include a 5-6% currency headwind. Our model estimates a 1% impact on third-quarter revenues from currency headwinds.

Coca-Cola’s third-quarter 2025 performance is expected to have witnessed growing pressure on profitability from a rising tax burden and elevated interest expenses, which tempered otherwise strong operational performance. These rising structural costs are eroding operating leverage and could weigh on net income growth, particularly as volume softness persists across key regions. Together, higher taxes and financing costs add pressure to maintain earnings momentum amid an already challenged macro backdrop.

However, Coca-Cola demonstrates resilience, fueled by strong business momentum, including a diverse brand portfolio, strategic investments and consistent revenue growth across its segments. This upward trajectory has been supported by broad-based growth, improved price/mix and effective execution of its all-weather strategy.

Despite volume pressures in several markets, the company’s ability to command premium pricing underscores the strength of its brand portfolio and execution discipline. Strategic revenue growth management and affordability initiatives helped balance pricing with consumer retention. 

We anticipate favorable price/mix trends to have fueled the company’s third-quarter performance. Our model forecasts a 6.9% year-over-year increase in organic revenues for the third quarter, driven by an 8.2% rise in the price/mix, offset by a 1.4% decline in concentrate sales.

Coca-Cola’s third-quarter results are expected to reflect gains from innovations and increased digital investments. E-commerce has surged, with growth rates doubling in many countries. KO has accelerated investments in digital capabilities, enhancing consumer connections and piloting digital initiatives to capture online demand, likely boosting third-quarter revenues.

Our model estimates an 80-bps increase in the adjusted operating margin in the third quarter, with year-over-year adjusted EPS growth of 2%.

Coca-Cola’s Price Performance & Valuation

KO shares have exhibited an uptrend, rising as much as 7.8% year to date. The stock has surpassed the broader industry and the Consumer Staples sector’s 3.5% and 0.2% growth, respectively. The KO stock has also outperformed the S&P 500 index, which has rallied 14% in the same period.

KO Stock’s YTD Performance

Image Source: Zacks Investment Research

The Coca-Cola stock has outperformed its competitors, PepsiCo Inc. (PEP Quick QuotePEP - Free Report) and Keurig Dr Pepper Inc. (KDP Quick QuoteKDP - Free Report) , which declined 0.6% and 16.1%, respectively, year to date. However, the stock has underperformed Monster Beverage Corporation’s (MNST Quick QuoteMNST - Free Report) growth of 30.6% in the same period.

From the valuation standpoint, KO trades at a forward 12-month P/E multiple of 21.21X, exceeding the industry average of 17.76X and the S&P 500’s average of 23.26X. Coca-Cola’s valuation appears quite pricey.

Image Source: Zacks Investment Research

KO undoubtedly commands a high valuation, reflecting its strong market positioning, brand power and long-term growth potential compared with other non-alcoholic beverage companies. However, we believe that its valuation is too stretched at this time.

Investment Thesis

Coca-Cola remains a powerhouse in the beverage industry, commanding more than 40% of the global non-alcoholic beverage market. The company’s enduring success is driven by a formidable market presence, world-class marketing capabilities and a relentless focus on innovation. With a portfolio boasting more than 4,700 products and more than 500 brands, spanning sodas, juices, waters and energy drinks, Coca-Cola continues to reinforce its leadership.

KO’s dominant market share, broad product range and strategic emphasis on innovation and digital transformation position it well for sustained long-term growth. However, short-term headwinds such as inflationary pressures, global macroeconomic uncertainties and unfavorable currency fluctuations remain challenges to navigate.

Conclusion

Regardless of how Coca-Cola stock moves post its third-quarter results, the company remains a compelling long-term investment, backed by solid profitability and a growing global presence. Prospective investors should assess the current valuation before initiating a position, while existing shareholders may find it wise to stay invested. The upcoming earnings are likely to reinforce Coca-Cola’s resilience and sustained growth outlook.