AI Takeaway
Coca-Cola delivered strong FY2025 results with revenue rising 1.9% to $47.9B, while net income surged 23.3% to $13.1B and operating margin expanded sharply to 28.7%, reflecting disciplined cost management and improved profitability.
Revenue
$47.94B
++1.87% YoY
EPS (Basic)
$3.05
++23.48% YoY
Gross Margin
61.6%
++0.56% YoY
Operating Income
$13.76B
++37.73% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 1.9% year-over-year to $47.9B in FY2025, with cost of revenue rising only 0.4% to $18.4B, suggesting that pricing power and favorable product mix were key contributors to top-line expansion.
Source: Source: 10-K Income Statement
Operating income surged 37.7% to $13.8B, with operating margin expanding approximately 7.5 percentage points to 28.7%, driven by controlled SG&A expenses which actually declined slightly by 0.4% to $14.5B year-over-year.
Source: Source: 10-K Income Statement
Net income increased 23.3% to $13.1B, with diluted EPS rising 23.6% to $3.04, reflecting both improved operational efficiency and the benefit of a lower share count from ongoing buyback activity.
Source: Source: 10-K Income Statement
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Upgrade to unlockOperating cash flow of $7.4B falls short of the $8.8B in dividends paid in FY2025, meaning Coca-Cola is effectively funding a portion of its dividend from sources other than operations. This creates a structural risk to dividend sustainability if earnings or cash flows deteriorate.
Source: Source: 10-K Cash Flow Statement
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Upgrade to unlockReported EPS of $0.58 versus the $0.58 analyst consensus — a -0.1% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $47.94B | $47.06B | +1.87% |
Cost of Revenue | $18.4B | $18.32B | +0.40% |
Gross Profit | $29.54B | $28.74B | +2.81% |
Operating Income | $13.76B | $9.99B | +37.73% |
Net Income | $13.11B | $10.63B | +23.29% |
EPS (Basic) | $3.05 | $2.47 | +23.48% |
EPS (Diluted) | $3.04 | $2.46 | +23.58% |
SG&A Expense | $14.52B | $14.58B | -0.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $104.82B | $100.55B | +4.24% |
Current Assets | $31.04B | $26B | +19.41% |
Current Liabilities | $21.28B | $25.25B | -15.72% |
Stockholders' Equity | $32.17B | $24.86B | +29.42% |
Cash & Equivalents | $10.27B | $10.83B | -5.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $7.41B | $6.8B | +8.86% |
Investing Cash Flow | $-67M | $2.52B | -102.65% |
Financing Cash Flow | $-8.14B | $-6.91B | -17.80% |
Dividends Paid | $8.78B | $8.36B | +5.02% |
Share Buybacks | $746M | $1.79B | -58.44% |
D&A | $1.05B | $1.07B | -2.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 61.6% | 61.1% | +0.56% |
Operating Margin | 28.7% | 21.2% | +7.47% |
Net Margin | 27.3% | — | — |
ROE | 40.7% | — | — |
ROA | 12.5% | — | — |
Current Ratio | $1.459 | — | — |
Other companies in Soft Drinks & Non-alcoholic Beverages
Coca-Cola had a strong FY2025, with revenue rising 1.9% to $47.9B and net income jumping 23.3% to $13.1B. Diluted EPS grew 23.6% to $3.04, driven by improved operating efficiency and a significant expansion in operating margin to 28.7%.
The standout story in KO's FY2025 10-K was the dramatic improvement in profitability, with operating income surging 37.7% to $13.8B despite only modest revenue growth of 1.9%. The company also strengthened its balance sheet, with stockholders' equity rising 29.4% to $32.2B and the current ratio improving to 1.46.
Yes, Coca-Cola paid $8.8B in dividends in FY2025, up 5.0% from $8.4B in the prior year, consistent with its long track record of dividend growth. However, dividends exceeded operating cash flow of $7.4B, meaning the payout was partially funded from other sources.
Key risks inferred from the financial data include the gap between operating cash flow ($7.4B) and dividends paid ($8.8B), significant exposure to foreign currency fluctuations given its global revenue base, and a sharp swing in investing cash flow from +$2.5B to -$67M year-over-year. Long-term secular shifts away from carbonated soft drinks also remain a structural concern.
Coca-Cola's margins improved meaningfully across the board in FY2025: gross margin edged up to 61.6% from 61.1%, operating margin expanded sharply to 28.7% from 21.2%, and net margin reached 27.3%. These gains were driven by flat-to-declining SG&A expenses and cost of revenue growing far slower than revenue.