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October 23, 2025 • 3 min read
Coca-Cola, a brand synonymous with refreshment worldwide, recently released its financial results for the third quarter of 2025. For anyone interested in the health of this global giant, the latest 10-Q filing with the SEC offers a detailed look under the hood. Let's dive into the numbers to see how the company is performing.
For the third quarter ended September 26, 2025, Coca-Cola reported Net Operating Revenues of $12.5 billion, a solid 5% increase from the $11.9 billion generated in the same period last year. For the first nine months of the year, revenues reached $36.1 billion, up 2% year-over-year.
Interestingly, this growth isn't coming from a surge in sales volume. Worldwide unit case volume—a key metric for beverage companies that measures the number of physical cases of drinks sold—was up just 1% for the quarter. Instead, the revenue boost was primarily driven by a 6% gain from "Price, Product & Geographic Mix." This indicates that Coca-Cola is successfully implementing price increases and consumers are potentially shifting to more premium products, demonstrating significant brand power in an inflationary environment.
Regionally, the performance was mixed. Asia Pacific and Europe, Middle East & Africa were star performers with revenue growth of 11% and 10%, respectively. North America posted a respectable 4% gain, while Latin America saw a 4% decline, largely due to unfavorable foreign currency fluctuations.
The most dramatic story in this filing is the surge in profitability. Operating Income jumped an impressive 59% to nearly $4.0 billion for the quarter, compared to $2.5 billion a year ago. This massive increase is largely explained by a sharp reduction in "Other operating charges," which fell from over $1 billion in Q3 2024 to just $58 million in Q3 2025. The prior year's charges were related to various items, including asset impairments, which did not recur at the same scale this year.
This improved operating performance flowed directly to the bottom line. Net Income attributable to shareowners climbed 30% to $3.7 billion, or $0.86 per diluted share, up from $2.8 billion, or $0.66 per share, in the prior-year quarter.
To better understand how Coca-Cola's revenue is converted into profit, the following flow diagram visualizes the company's income statement for the first nine months of 2025.
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In the diagram, the "Corporate" line items represent revenues and costs that are not allocated to a specific geographic segment. These often include the results of smaller business lines, inter-segment eliminations, and various corporate-level accounting adjustments.
Beyond the headline numbers, the filing hints at ongoing strategic moves. Coca-Cola continues to refranchise its bottling operations—the capital-intensive part of the business responsible for bottling and distributing beverages. A notable subsequent event mentioned is the plan to classify its bottling operations in Africa as "held for sale," signaling an impending divestiture. This aligns with the company's long-term strategy to focus on its more profitable concentrate business and brand building.
In summary, Coca-Cola's third-quarter results paint a picture of a company skillfully using its powerful brand to drive revenue through pricing rather than volume. While modest volume growth suggests a challenging consumer environment, the significant improvement in profitability and strategic focus on its core business model position the company well. Investors will be watching closely to see if it can maintain this pricing power and continue its operational discipline in the quarters ahead.
Last updated: October 23, 2025