Coca-Cola ($KO) Crushes Q2 Earnings Forecasts But Revenue Stumbles – Cane Sugar Revival Inbound

Coca-Cola's Q2 earnings just flexed harder than a caffeinated stockbroker—beating analyst expectations while revenue fizzed slightly flat. The real headline? A throwback cane sugar formula hitting shelves soon, because nothing says 'innovation' like revisiting 1892.

Wall Street's sugar rush: KO popped on earnings strength despite the revenue miss, proving once again that investors will swallow mediocre growth if you dangle enough nostalgia and dividend candy. The cane sugar pivot? A slick hedge against the 'clean label' crowd—same calories, better marketing.

Bottom line: In a market where 'disruption' means repackaging grandpa's recipe with a premium price tag, Coke's playbook stays refreshingly cynical. Cheers to that.

TLDR

• Coca-Cola reported Q2 adjusted EPS of $0.87, beating expectations by $0.04
• Revenue rose 1% to $12.5 billion, slightly missing analyst projections
• The company narrowed full-year EPS growth outlook to ~3%
• A new cane sugar Coca-Cola product is set to launch this fall in the U.S.
• Unit case volumes declined 1% globally, led by drops in North America and India

The Coca-Cola Company (KO) stock declined to a low of $68.94 before recovering slightly to $69.00 by 3:23 PM EDT, marking a 0.95% decrease.

Coca-Cola Company (KO)

Coca-Cola reported second-quarter adjusted earnings of $0.87 per share, topping Wall Street forecasts by $0.04. However, revenue grew just 1% to $12.5 billion, falling short of analysts’ estimates. Gross profit ROSE 3.5% to $7.8 billion, while operating income surged 62.6% year-over-year to $4.2 billion.

Despite strong profitability, the company saw modest volume pressures. Unit case volumes fell 1% globally, with a 3% decline in North America, 2% in Latin America, and 1% in Asia Pacific. The Bottling Investments segment saw volumes slide 5%, attributed to bottling refranchising and weak sales in India. Shares were down nearly 1% in afternoon trading at $69.02. The stock is up about 13% year-to-date.

Outlook Tightened, Currency Headwinds Ahead

Coca-Cola narrowed its full-year EPS guidance, now expecting adjusted EPS growth of around 3% from 2024’s $2.88, down from the earlier range of 2% to 3%. The company warned that both EPS and revenue are expected to face currency-related pressures in Q3 and the second half of 2025. Executives said the overall impact of tariffs on the business remains “manageable.”

Cane Sugar Coke to Debut in U.S. Market

In a notable product shift, Coca-Cola announced plans to introduce a new version of its flagship soda sweetened with U.S. cane sugar. This MOVE comes after public statements by President Donald Trump, who claimed the company agreed to replace high-fructose corn syrup amid health concerns. The new product is expected to hit U.S. shelves this fall.

CEO James Quincey confirmed the change during the earnings call, stating the launch is aimed at increasing consumer choice. Coca-Cola already uses cane sugar in markets like Mexico and in several U.S. products, including Vitamin Water and lemonade. The announcement aligns with growing scrutiny from the TRUMP administration and Health Secretary Robert F. Kennedy Jr. over food ingredient standards in the U.S.

Performance Overview vs. S&P 500

Coca-Cola stock has delivered a 12.47% year-to-date return, outperforming the S&P 500’s 8.02%.  However, its long-term performance lags behind the broader market. KO gained 9.36% over the past year versus the S&P’s 14.35%. Over three and five years, KO returned 22.61% and 66.37%, respectively, compared to the S&P 500’s 60.37% and 96.35%. While a reliable dividend payer, the stock has underperformed in long-term capital appreciation.