A ransomware event at fairlife operations (part of the North America segment) was disclosed in a Form 8-K on July 16, 2026, involving unauthorized third-party access to a portion of fairlife's systems and exfiltration of certain data. The incident caused a temporary suspension of production operations; a majority of production had resumed as of the filing date, and management assessed the incident as not having, and not reasonably likely to have, a material impact on financial condition or results of operations.
The Company's definitive agreement (October 2025) to sell a portion of its Africa bottling operations to Coca-Cola HBC AG remains pending regulatory approval, with closing expected by end of 2026. A separate option was agreed for CCHBC to acquire the remaining 25% interest within six years of closing. In Q2 2026, the Company recorded a $66 million gain (part of $56 million for the six-month period) reducing the $1,274 million impairment charge originally taken in fiscal 2025, based on management's revised estimates of sale proceeds. Held-for-sale assets stood at $5,438 million and liabilities at $2,442 million as of July 3, 2026.
Worldwide unit case volume grew 5% and concentrate sales volume grew 4% in Q2 2026 versus Q2 2025. Net operating revenues rose 7% to $13,380 million, driven by volume (+4%), price/mix (+2%), and favorable foreign currency (+2%), partially offset by divestiture impacts (-1%) including the October 2025 sale of Nigeria finished product operations and the May 2025 India refranchising. Asia Pacific unit case volume led growth at 8% (13% in India/Southwest Asia); operating income increased 9% to $4,672 million. The Company noted it currently expects full-year 2026 worldwide concentrate sales volume growth to be slightly behind unit case volume growth.
The U.S. Court of Appeals for the Eleventh Circuit heard the Company's IRS transfer-pricing litigation (tax years 2007-2009) on June 25, 2026; no decision has been issued as of the filing date. The Company updated its tax reserve to $529 million as of July 3, 2026 (from $438 million recorded in 2020) and recorded net interest income of $43 million on the $6.0 billion IRS Tax Litigation Deposit during Q2. The Company estimates that if the Tax Court Methodology is ultimately upheld, the potential aggregate incremental tax and interest liability for tax years 2010-2025 is approximately $14 billion (as of December 31, 2025), with continued application in Q2 2026 increasing that exposure by roughly $450 million; a full-year 2026 application is projected to increase the effective tax rate by approximately 3.8%.
In Q4 2025, the Company recorded a $960 million impairment charge on the BodyArmor trademark (remaining carrying value $2,440 million) following a reassessment triggered by lower-than-expected operating results, a slowing projected long-term category growth rate, an intensifying competitive environment, and more focused innovation and international rollout plans. As of July 3, 2026, the fair value of the trademark approximates its carrying value, but management noted that if near-term operating results do not meet revised projections or macroeconomic conditions worsen, an additional impairment charge would likely be required.
The Baltimore environmental lawsuit (filed June 2024, alleging plastic packaging impacts on city lands and waterways) was fully resolved on July 23, 2026, when the Baltimore Circuit Court dismissed the remaining public nuisance claim, following a partial dismissal with prejudice of all other claims in July 2025.
(Filed on April 30, 2026)
+12.1%
63.0%
$10.6B
In October 2025, Coca-Cola signed a definitive agreement to sell a portion of its African bottling operations to Coca-Cola HBC AG (CCHBC); closing is expected by end of 2026, after which the operations will be deconsolidated. CCHBC also received a six-year option to acquire the remaining 25% interest. During Q1 2026, the company recorded an additional $10 million impairment on these held-for-sale operations (assets $5.2B, liabilities $2.4B) based on revised management estimates, following a $1,274 million impairment in FY2025 primarily from negative net foreign currency translation.
Structural changes carried into Q1 2026 results include the May 2025 refranchising of bottling operations in certain India territories (generating a $10 million indemnification charge in the quarter) and the October 2025 sale of finished product operations in Nigeria. The Nigeria divestiture was the primary driver of a 15% decline in EMEA juice, value-added dairy, and plant-based beverage unit case volume; after adjusting for the India refranchising, Bottling Investments segment unit case volume grew 4% in the quarter.
Worldwide unit case volume grew 3% and concentrate sales volume grew 8% in Q1 2026 (the quarter had six more days than the prior-year period). Net operating revenues rose 12% to $12,472 million, driven by 8% volume, 2% price/mix, 3% favorable foreign currency, and -1% acquisitions/divestitures. Operating income increased 19% to $4,359 million, lifting consolidated operating margin to 35.0% from 32.9%; Asia Pacific was the only geographic segment with lower operating income ($536M vs. $624M), pressured by unfavorable price/mix and higher commodity costs despite 10% concentrate volume growth.
The BodyArmor sports beverage trademark, impaired by $960 million in Q4 2025 due to a slowing projected long-term growth rate, intensifying competition, and revised innovation and international rollout plans, had a remaining carrying value of $2,440 million as of April 3, 2026. Management stated that fair value approximates carrying value at quarter-end but warned additional impairment is likely if near-term operating results do not meet revised projections or if discount rates rise without offsetting performance gains.
In the ongoing IRS transfer-pricing litigation (2007–2009 tax years, $6.0 billion paid as a deposit in September 2024), the Eighth Circuit's October 2025 reversal of the Tax Court in the 3M case was described as 'highly supportive' of Coca-Cola's position on the blocked-income regulations. The company updated its ASC 740 tax reserve to $520 million and estimates the potential aggregate incremental tax and interest liability for 2010–2025 at approximately $14 billion as of December 31, 2025, with roughly $450 million of additional accrual in Q1 2026; it projects continued application of the Tax Court methodology would raise its 2026 effective tax rate by about 3.8%. The appeal to the Eleventh Circuit has concluded briefing (company's reply brief filed August 27, 2025).
(Filed on February 20, 2026)
+2.4%
60.0%
$10.3B
In Q4 2025 (three months ended Dec 31), Coca-Cola recorded a $960 million impairment charge on its BodyArmor sports-drink trademark, citing a slowing projected long-term growth rate for the category, an intensifying competitive environment, and a shift to more focused innovation and international rollout plans; the trademark's remaining carrying value is $2,440 million, and management cautioned further impairment is likely if near-term results miss revised projections. (This followed a $760 million BodyArmor impairment in Q1 2024.)
Q4 2025 saw the completion of several consolidated-bottling divestitures: in November the Company sold its remaining stake in Coke Consolidated for $2,392 million cash (recognizing a $1,952 million gain); in October it sold its finished-product operations in Nigeria for $106 million (after an $393 million write-down); and in October it entered a definitive agreement to sell a portion of its African bottling operations to CCHBC, with a $1,274 million impairment on held-for-sale classification and closing expected by end-2026, plus a six-year option for CCHBC to acquire the remaining 25%. These moves continue the multi-year refranchising strategy that also included 2024–2025 divestitures in the Philippines, Bangladesh, and multiple Indian territories.
In December 2025 the Board elected Chief Operating Officer Henrique Braun as next Chief Executive Officer, effective March 31, 2026, with Chairman/CEO James Quincey transitioning to Executive Chairman; Braun was also nominated to stand for election as a Director at the 2026 annual meeting. Separately, Executive VP Manuel Arroyo will assume customer and commercial leadership responsibilities as Global Chief Marketing and Customer Commercial Officer on the same date.
On October 1, 2025 (Q4), the U.S. Eighth Circuit reversed the Tax Court in the 3M case, concluding the IRS blocked-income regulation is inconsistent with IRC §482 and cannot reallocate income from a Brazilian subsidiary contrary to local royalty-payment restrictions—a ruling the Company described as 'highly supportive' of its position in its ~$6 billion IRS tax litigation (tax years 2007–2009). The Company's appeal to the Eleventh Circuit remained pending, with the reply brief filed August 27, 2025. The tax reserve for the dispute was updated to $512 million as of December 31, 2025, and the Company estimates a potential aggregate remaining incremental tax-and-interest liability for 2010–2025 of approximately $14 billion if the Tax Court methodology were ultimately upheld.
Annual 2025 context (not Q4-only): The Coca-Cola system sold 33.8 billion unit cases (even vs. 33.7 billion in 2024); worldwide concentrate sales volume grew 1% while unit case volume was flat. EMEA unit case volume rose 3%, North America fell 1%, and Asia Pacific and Latin America were even. Net operating revenues were $47.94 billion (+2% YoY), driven by 4% price/mix offset by 2% unfavorable foreign-currency impact and 1% acquisitions/divestitures. The Company sunset its Global Ventures operating segment effective January 1, 2025, folding Costa (excluding ready-to-drink) and innocent/doğadan into EMEA and Monster-related fees into applicable geographic segments. Headcount declined to approximately 65,900 from 69,700, primarily due to 2025 divestiture activity.
In Q4 2025 the Board increased the regular quarterly dividend to $0.53 per share (64th consecutive annual increase), annualized to $2.12 for 2026. The Company repurchased 1,459,130 shares during the quarter (1,447,290 under the 2019 Plan), leaving 66,948,744 shares remaining under that authorization. Full-year 2025 capital expenditures were $2.11 billion and advertising expense was $5.4 billion; the Company expects 2026 capex of approximately $2.2 billion and an effective tax rate of roughly 20.9% before discrete items.
(Filed on October 23, 2025)
+5.1%
61.5%
$12.7B
The Company completed the sale of certain finished product operations in Nigeria on October 2, 2025, having classified them as held for sale during Q3 2025 and recorded a $393 million charge ($235 million asset write-off plus $158 million accrual). In October 2025, a subsequent event, the Company entered a definitive agreement to sell a portion of its bottling operations in Africa to Coca-Cola HBC AG (CCHBC), with closing expected by end of 2026 subject to regulatory approvals; a separate option grants CCHBC the right to acquire the remaining 25% interest within six years. This transaction is expected to trigger an approximately $1 billion impairment charge in Q4 2025; the affected assets total $6,236 million and liabilities $2,441 million.
In May 2025, the Company refranchised bottling operations in certain Indian territories (held for sale at year-end 2024) for $218 million in net cash proceeds and a $102 million gain. In July 2025, the Company sold a 40% noncontrolling interest in its consolidated bottling operations in India to a local partner for approximately $1.3 billion, resulting in a $1.1 billion increase to total equity. Additionally, the Company sold a portion of its stake in Coca-Cola Europacific Partners (CCEP) in March 2025 for $741 million in cash proceeds and a $331 million net gain. The $6.2 billion final fairlife milestone payment was made in March 2025, closing out that 2020 acquisition obligation.
Q3 2025 worldwide unit case volume increased 1% and concentrate sales volume was even versus the prior-year quarter. Price, product, and geographic mix delivered a 6% favorable impact on consolidated net operating revenues of $12,455 million (+5% YoY). By segment, EMEA unit cases grew 4% (driven by Eurasia/Middle East +8% and Africa +7%), North America and Latin America were even, and Asia Pacific declined 1% (sparkling flavors -6%, juice/dairy/plant-based -9%). Operating income was $3,982 million, up 59% year over year, primarily reflecting the absence of prior-year fairlife remeasurement and BodyArmor impairment charges; gross margin expanded to 61.5% from 60.7%.
The ongoing IRS transfer-pricing litigation (tax years 2007-2009, $6.0 billion deposit paid September 2024) received a material procedural development: on October 1, 2025, the U.S. Court of Appeals for the Eighth Circuit reversed the Tax Court in the 3M case, concluding the blocked-income regulation was inconsistent with IRC Section 482. The Company characterized the decision as 'highly supportive' of its position. The Eleventh Circuit appeal briefing is complete (reply brief filed August 27, 2025). The Company updated its tax reserve to $502 million and estimates the potential aggregate incremental tax and interest liability for 2010-2024 at approximately $12 billion (as of December 31, 2024) plus $1.2 billion in additional accrual for the nine months ended September 2025, should the Tax Court methodology be ultimately upheld.
The Company's long-standing productivity and reinvestment program incurred $24 million in Q3 2025 (cumulative $4,489 million since inception); most initiatives were substantially complete by end-2024, with remaining organizational simplification and standardization work expected to finish during 2025. A $31 million trademark impairment in Latin America (remaining carrying value $55 million) and other-than-temporary impairment charges of $40 million (equity method investee) and $25 million (joint venture in planned liquidation) in Latin America were recorded over the nine-month period. The Company's board approved a regular quarterly dividend of $0.51 per share payable December 15, 2025, and expects full-year 2025 capital expenditures of approximately $2.2 billion.
