viridis.A sample deep research report · written Oct 9, 2026
KO
Coca Cola Co
Quarterly report (10-Q) for the quarter ended Jul 3, 2026 · filed Jul 29, 2026 · the filing on SEC.gov
the 10-Q in full
the 10-K of Feb 20, 2026
4 8-K reports
the earnings call (quarter ended Jul 3, 2026)
computed figures
insider trades to Oct 9, 2026
Business trajectory
Improving
better on balance: sales, margins, cash or competitive position
ImprovingStableMixedDeteriorating
Financial resilience
Strong
can meet its obligations and fund its plan for two years with money it can count on, with room
StrongAdequateFragileCritical
✓Checked against its sources · 103 of 107 figures found where cited · 5 more are its own calculations ·
Bottom line
Coca-Cola is growing at the top of its normal range with free cash flow back near $12.4B, comfortably funding the dividend, but Q2 was flattered by currency, an easy comparison and calendar effects, and guidance implies a much slower second half. The IRS case, with roughly $14B of potential additional tax and interest, is the one exposure that could reset the balance sheet.
Key findings
Q2 organic revenue +6% and EPS +16%, but currency added 4 points to EPS and underlying operating margin rose only 0.24 points
Raised guidance (about 5% organic, 9-10% comparable EPS) implies roughly 2% organic growth and 3-5% EPS growth in H2
Cash normalized: H1 free cash flow $6.86B, FY guide $12.4B versus about $9.1B of dividends
IRS case: about $14B potential 2010-2025 liability plus about $900M H1 2026 accrual, $6.0B deposit at stake, ruling pending after June 25, 2026 argument
One-sided insider selling: $52.0M discretionary and $115.8M plan sales, no purchases; CFO also running North America on an interim basis
Risks
Unfavorable Eleventh Circuit ruling adding about $14.9B of tax and interest and 3.8 points to the tax rate
Second-half slowdown deeper than the implied roughly 2% organic growth
Further BodyArmor impairment on a $2,440M trademark carried at about fair value
Asia Pacific price/mix of -9% and India value share loss
Execution risk with the CFO also running North America, 40.8% of 2025 revenue
What to watch
Q3 10-Q due by November 11, 2026: organic growth versus implied roughly 2% H2 pace
Eleventh Circuit tax ruling, possibly December 2026 to June 2027
Africa bottling sale closing, expected end of Q3 or in Q4 2026; Q3 has ended and the inputs do not show closing
Any BodyArmor impairment from the annual test as of the first day of Q3
Appointment of a permanent North America president
From the filings’ own data, computed by Viridis
The numbers
Revenue$13.4B▲ 6.7% on Q2 2025Q2 2026 · sales in the quarterOperating income$4.67B▲ 9.2% on Q2 2025Q2 2026 · profit from the business before interest and taxFree cash flow$5.10B▲ 51.5% on Q2 2025Q2 2026 · cash from operations after capital spendingCash and short-term investments$13.5B▲ 10.5% on Q2 2025Q2 2026 · at each quarter's end
Lighter bars are computed from year-to-date totals (a fourth quarter is the year less its first nine months); hover a bar for its value.
Financial health
Cash and debt
$13.5B of cash and short-term investments against $43.5B of debt, $6.5B of it due within 12 months (as of Jul 3, 2026). The $6.5B due within 12 months is 48% of the cash and short-term investments; FY 2025 operating cash flow of $7.4B covers it.
How to read it
Money on hand (cash and short-term investments) against money borrowed (bonds, loans, commercial paper). Debt due within 12 months has to be repaid or refinanced soon; when it is larger than cash, the company relies on the cash it generates or on its lenders. Operating lease obligations and bills owed to suppliers are not counted as debt.
Years of cash flow to repay debt (debt ÷ operating cash flow)
about 5.9 (FY 2025 operating cash flow $7.4B; under 3 is comfortable for most companies).
How to read it
How many years of the cash its operations bring in would repay all its debt. Under about 3 is comfortable for most companies; above about 5, repayment depends on refinancing. Utilities and property owners normally run higher, and a company that lends to its customers carries that lending's debt too. Not shown for a company that burns cash.
Cash runway
Cash burn: none. Operating cash flow was positive in FY 2025 and over the last two quarters.
How to read it
How long cash and short-term investments last at the recent rate of cash used by operations. It matters for a company that spends more cash than it brings in. Under 1 year usually means raising money within months, often by selling new shares that dilute existing holders; 1 to 2 years means financing within about a year is likely; 3 years or more is comfortable. It leaves out capital spending and debt repayments, so it overstates the time when those are large.
Cash per $1 of profit (operating cash flow ÷ net income)
$0.57 in FY 2025, $0.64 in FY 2024 (operating cash flow ÷ net income; about $1 or more is normal).
How to read it
How much cash the business took in for each dollar of reported profit. About $1 or more is normal, because depreciation and stock-based pay are costs that use no cash; below about $0.80 year after year means profit runs ahead of cash, so look at money owed by customers, inventory and non-cash gains. One year can swing on tax payments or a large customer prepayment. Not shown for a loss.
Short-term assets against bills due within a year (current ratio)
Short-term assets cover bills due within a year 1.3 times (as of Jul 3, 2026; current ratio; about 1.5 or more is comfortable for most companies, below 1 means near-term bills exceed them).
How to read it
Cash, money owed by customers and inventory, divided by everything due within twelve months. Above about 1.5 is comfortable; below 1, near-term bills exceed short-term assets. Retailers and restaurants run near or below 1 by design (they sell stock before paying suppliers); customer prepayments counted as bills make subscription businesses look tighter than they are.
Deterministic checks on the filings
Red flags
Low
One-sided insider selling (chosen, not pre-arranged)
10 open-market sale(s) insiders chose to make (not under a pre-arranged Rule 10b5-1 plan) totaling $52.0M and no such purchases, 2026-04-09 to 2026-10-09. Pre-arranged plan sales are excluded.
The full report
Bottom line
Coca-Cola's second quarter of fiscal 2026 (three months to July 3) shows a business growing at the top of its usual range. Organic revenue, meaning sales growth excluding currency and deals, rose 6%, and free cash flow is back to normal after two years distorted by one-off payments. The headline is flattered, though: currency supplied 4 of the 16 points of EPS growth, management calls the volume comparison easier, and the underlying operating margin rose only 0.24 points. Cash comfortably funds the dividend. The one exposure large enough to change that is the IRS transfer-pricing case: a loss could add roughly $14 billion of tax and interest for 2010–2025, on top of the $6.0 billion already deposited.
Key findings
The quarter's acceleration owes much to currency, an easy comparison and calendar quirks
Evidence
Net revenues rose 7% to $13,380M. Organic growth was driven by 4% higher concentrate sales and 2% price/mix.
Unit case volume grew 5%. Management says this was aided by an easier prior-year comparison and that the two-year average is 2%. Full-year 2025 volume was even.
Operating income rose 9%, but only 6% on a comparable, currency-neutral basis.
The reported operating margin rose 77 basis points to 34.92%. After removing currency and divestitures, the "underlying" margin rose just 24 basis points, to 35.16%.
Advertising rose to $1,565M from $1,328M. Margins still expanded, helped partly by lower annual incentive expense.
Counterpoint The growth was broad. The company gained value share in total nonalcoholic ready-to-drink beverages, and North America's comparable currency-neutral operating income rose 12%.
What would prove it wrong The strength would look intrinsic if Q3, against tougher comparisons, delivers organic growth of at least 5% plus further underlying margin expansion. The Q3 10-Q is due by November 11, 2026.
The raised guidance itself implies a much slower second half
Evidence
Full-year guidance is now about 5% organic revenue growth (prior: 4–5%) and 9–10% comparable EPS growth (prior: 8–9%).
Organic growth was 8% in the first half. By my rough approximation, about 5% for the year implies roughly 2% in the second half.
First-half comparable EPS was $1.83 versus $1.60 a year earlier. On the call's $3.00 base for 2025, guidance implies $1.44–$1.47 of second-half comparable EPS. That compares with $1.40 a year earlier (my calculation), or growth of about 3–5%.
The stated mechanics:
Q1 had six extra days and Q4 will have six fewer.
The Africa bottling sale is a 2–3% revenue headwind.
Concentrate shipments are expected to lag case volume by about a point in Q3.
Counterpoint Much of the slowdown is calendar and divestiture, not demand. Management also expects an approximately 3% currency tailwind to Q3 comparable EPS.
What would prove it wrong Q3 organic growth well above 2–3% with concentrate shipments in line with volume.
Cash generation has normalized and funds the dividend with room
Evidence
First-half operating cash flow (OCF) was $7,543M, against −$1,391M a year earlier, which included $6,069M of the final fairlife milestone payment.
First-half free cash flow was $6,859M, and full-year guidance is about $12.4B.
The $2.12 annual dividend on 4,303M shares costs about $9.1B (my calculation), leaving roughly $3.3B.
Counterpoint
First-half cash was helped by the receivables factoring program, lower tax payments and lower incentive payments. The company sold $7,011M of receivables in the period.
First-half OCF was 0.90 times consolidated net income of $8,404M (my calculation).
Guidance implies second-half OCF of about $7.1B ($14.6B minus $7.5B), below the $8.8B of second-half 2025 (my calculations from).
What would prove it wrong Full-year OCF materially below the ~$14.6B guide.
The IRS case is the one exposure that could reset the balance sheet
Evidence
The Tax Court's decision produced a $6.0B bill including interest, which was paid in September 2024. Accrued interest receivable on that deposit was $514M and the reserve was $529M as of July 3.
If the Tax Court method is upheld and applied to later years, the remaining 2010–2025 exposure could be about $14B as of December 31, 2025, and about $900M more accrued in the first half of 2026.
Continued application would raise the effective tax rate by about 3.8 points a year, up from 3.5 in the 10-K.
Roughly $14.9B equals about 1.2 years of guided free cash flow (my calculation).
The Eleventh Circuit heard the appeal on June 25, 2026.
Counterpoint
The Eighth Circuit's reversal in the 3M case is, in the company's words, "highly supportive".
The company says it remains more likely than not to prevail and can manage the range of outcomes.
A win returns the deposit plus interest, in full or in part.
What would prove it wrong A favorable appellate ruling. Management says timing is unknown but has talked of 6–12 months after argument.
Financial resilience
Coca-Cola can fund its plan without new equity. It relies only on routine refinancing of maturing bonds, which an issuer rated A+/A1 at year-end does routinely.
Liquidity:
Cash, equivalents, short-term investments and marketable securities totaled $16.4B, with $6.6B of unused backup credit lines expiring through 2031.
No commercial paper was outstanding at July 3, against $1,495M at year-end.
Debt:
Total debt was $43,543M, of which about $6.5B is due within 12 months. Current maturities rose from $1,822M at December 31 to $6,494M.
The current ratio is 1.3. The company notes its debt policy can leave current liabilities above current assets.
On guided OCF, debt equals about 3.0 years of operating cash (my calculation). Management cites net debt of 1.4 times EBITDA against a 2–2.5x target.
Long-term debt carried at $43,495M had a fair value of $38,825M. That gap reflects low-coupon legacy debt, which suggests refinancing will gradually raise interest cost (my inference, if rates stay above those coupons).
The Africa sale will remove $1,452M of held-for-sale debt on closing (my sum from).
Dilution: The share count was flat year over year. First-half buybacks were $549M, intended to offset stock-compensation dilution.
Commitments: Guarantees of $874M are judged remote. Purchase obligations due in 2026 were $18.4B as of year-end.
Quality of earnings and accounting
Reported earnings are clean in direction this quarter. GAAP EPS ($1.03) exceeds the company's comparable figure ($0.97), but tax and timing items matter.
What moved the headline:
GAAP results include a $320M net gain on securities, of which $247M of unrealized gains is excluded from comparable results.
They also include a $66M reduction of the Africa impairment.
The economic-hedge adjustment added $56M to non-GAAP pre-tax income in Q2 but subtracted $30M year to date.
Tax:
The first-half effective tax rate was 16.7%, versus 19.4% a year earlier. It included $319M of discrete benefits, among them $98M of interest on the IRS deposit and $181M of return-to-provision adjustments.
The 2026 underlying rate is now about 19.9%, below the ~20.9% the 10-K expected. That one-point drop alone lifts comparable EPS by roughly 1.3% (my calculation); the filing does not explain it.
Assets at risk: The BodyArmor trademark ($2,440M) was carried at approximately fair value as of July 3. Management says a further impairment is "likely" if near-term results miss its projections. It follows charges of $760M in 2024 and $960M in 2025.
Revenue recognition: Concentrate revenue is booked on shipment to unconsolidated bottlers. Q2 shipments lagged consumer volume by a point, which is the opposite of pushing inventory into bottlers.
Controls and audit:
Disclosure controls were effective, with no material control changes.
The auditor's critical audit matters cover uncertain tax positions and trademark valuation.
No high-severity red flags fired.
Management and incentives
Delivery matches claims on reported results. Leadership concentration and insider selling deserve scrutiny.
fairlife ransomware incident:
The July 16 8-K said materiality was undetermined and U.S. fairlife production was suspended.
Thirteen days later, the 10-Q said most production had resumed, certain data was taken, and the company believes the incident is not material.
Q2 ended before the incident, so the reported quarter cannot show its effect. Management's "no material impact" in the second half is still untested.
Leadership:
Henrique Braun became CEO on March 31.
After North America's president departed, CFO John Murphy took interim charge of North America from August 1. That segment was 40.8% of 2025 revenue. My inference: one executive now spans both the reporting and the operating side of the largest unit.
Insider trading:
Over six months there were no purchases, $52.0M of chosen (discretionary) sales and $115.8M of pre-arranged Rule 10b5-1 plan sales.
Executive Chairman James Quincey sold $15.8M discretionarily and $83.1M under a plan.
Murphy sold $13.3M on July 31, 35% of that holding, the day before taking the North America role.
The departing North America president's $26.0M of sales on June 5–10 were under a pre-arranged plan. No director or officer adopted or terminated such a plan during Q2.
The sales cluster after results and carry only a low-severity flag. Still, the selling is one-sided.
Governance:
Director Thomas Gayner drew 24% opposition. Say-on-pay passed with 90.84%.
The case for and against
For Fundamentals are firmer than in 2025:
Volume turned positive in every segment, with value share gains.
North America comparable currency-neutral profit rose 12%.
Free cash flow is guided to $12.4B after years absorbed by the fairlife and IRS payments.
Guidance was raised on organic revenue and EPS.
Against
Underlying margin expansion is thin at 24 basis points.
Asia Pacific price/mix fell 9%, and the company lost value share in India.
EMEA comparable currency-neutral profit fell 5%.
The second half is guided to slow sharply.
A $14B-plus tax contingency hangs over the balance sheet.
Where the evidence points Fundamentals are modestly improving, but on a narrower base than the headlines suggest. The two deciding variables:
Whether organic growth holds above about 4% once calendar and comparison effects fade. Today's evidence is the guidance implying roughly 2% for the second half.
The Eleventh Circuit ruling. The only evidence available is the company's more-likely-than-not view, which is supported by the 3M reversal.
What to watch
Q3 10-Q, due by November 11, 2026: organic growth versus the implied ~2% second-half pace, the expected 1-point concentrate lag, and underlying margin. This tests findings 1 and 2.
Eleventh Circuit decision: management's 6–12 months suggests December 2026 to June 2027, though timing is unknown. This tests finding 4.
Africa bottling sale: expected to close toward the end of Q3 or in Q4. Q3 ended in early October, and the inputs do not show whether it closed.
BodyArmor impairment test: the annual test is performed as of the first day of Q3. Watch for any charge in the Q3 filing.
North America leadership: naming a permanent president would end the CFO's dual role.
fairlife: any later cost disclosure would contradict the "not material" assessment.
Data notes
The computed figures of 5.9 years of debt repayment and $0.57 of cash per dollar of profit use 2025 operating cash flow. That figure was cut by the $6.1B fairlife payment, and 2024's by the $6.0B IRS deposit. On guided OCF, debt is about 3.0 years.
First-half growth rates include six extra days in Q1, and Q4 loses six. Unit case volume uses average daily sales and is unaffected.
The $3.00 base for 2025 comparable EPS appears only on the call. My implied second-half EPS rests on it.
First-half dividends of $4,562M include two quarterly payments, versus effectively one a year earlier, so financing outflows are not like for like.
Sources86 passages from 9 documents · the numbers in the text open each one
How this report was madewhat it read, the model, the checks
Generated
2026-10-09 13:38 UTC
Model
claude-opus-5-5 (standard, xhigh reasoning)
Report ID
sample-ko
8-K reports used
4
Insider data as of
2026-10-09
Earnings call read
quarter ended 2026-07-03 (transcript by roic.ai)
Annual report read
10-K filed 2026-02-20 for the fiscal year ended 2025-12-31
Figures checked
103 of 107 figures appear in the passages cited; the other 4 appear only in other passages of the report's sources or in none of them; 5 more are the writer’s own calculations, marked in the text
Source check
a second pass corrected 1 claim against the cited source
How this report was made
Generated
2026-10-09 13:38 UTC
Model
claude-opus-5-5 (standard, xhigh reasoning)
Report ID
sample-ko
8-K reports used
4
Insider data as of
2026-10-09
Earnings call read
quarter ended 2026-07-03 (transcript by roic.ai)
Annual report read
10-K filed 2026-02-20 for the fiscal year ended 2025-12-31
Figures checked
103 of 107 figures appear in the passages cited; the other 4 appear only in other passages of the report's sources or in none of them; 5 more are the writer’s own calculations, marked in the text
Source check
a second pass corrected 1 claim against the cited source
EPS grew 16% to $1.03, and comparable EPS (non-GAAP) grew 11% to $0.97. EPS performance included the impact of a 4-point currency tailwind, while comparable EPS (non-GAAP) performance included the impact of a 2-point currency tailwind.
KO Earnings call on the quarter ended 2026-07-03 (results released 2026-07-28), transcript by roic.ai
With the commitment and dedication of our Coca-Cola system partners around the world, I'm confident we are well-positioned to deliver on our raised 2026 guidance. This morning, I'll touch on our business performance and share our perspective on the global operating environment. Then, I'll discuss how we are executing against our three priorities to enhance our staying power and extend our strengths. John will end by discussing our financial results and provide further commentary on the outlook for the rest of the year. We delivered a strong quarter with broad-based momentum across our business. We grew volume 5%, aided by cycling an easier prior year comparison, and we grew organic revenue at the high end of our long-term growth algorithm. Looking at the two-year average, we grew volume 2%, reflective of a more balanced contribution to the top-line growth. This led to organic revenue growth at the high end of our long-term algorithm.
T0003
5
8-K filed 2026-07-28 (Items 2.02, 9.01)
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
The Company calculated the potential impact of applying the Tax Court Methodology to reallocate income from foreign licensees potentially covered within the scope of the Opinions for the 2010 through 2025 tax years, assuming such methodology were to be ultimately upheld by the courts, and the IRS were to decide to apply that methodology to subsequent years, with consent of the federal courts. This impact would include taxes and interest accrued through December 31, 2025. The calculations incorporated the estimated impact of correlative adjustments to the previously accrued transition tax payable under the 2017 Tax Cuts and Jobs Act. The Company estimates that the potential aggregate remaining incremental tax and interest liability for the tax years 2010 through 2025 could be approximately $ 14 billion as of December 31, 2025. Additional income tax and interest on any unpaid potential liabilities for the 2010 through 2025 tax years would continue to accrue until the time any such potential liability, or portion thereof, were to be paid. The Company estimates the impact of the continued application of the Tax Court Methodology for the three and six months ended July 3, 2026 would increase the potential aggregate incremental tax and interest liability by approximately $ 450 million and $ 900 million, respectively. We currently project the continued application of the Tax Court Methodology in 2026, assuming similar facts and circumstances as of December 31, 2025 and reflecting changes enacted under the One Big Beautiful Bill Act effective in 2026, would result in an incremental annual tax liability that would increase the Company’s effective tax rate by approximately 3.8 %.
While the Company strongly disagrees with the IRS’ positions and the portions of the Opinions affirming such positions, it is possible that some portion or all of the adjustments proposed by the IRS and sustained by the Tax Court could ultimately be upheld. In that event, the Company would not receive a refund of the applicable portion or all of the $ 6.0 billion it paid in response to the IRS invoices issued in September 2024 and the related accrued interest receivable of $ 514 million as of July 3, 2026. Additionally, the Company would likely be subject to significant additional liabilities for subsequent years, which could have a material adverse impact on the Company’s financial position, results of operations and cash flows.
Net revenues grew 7% to $13.4 billion, and organic revenues (non-GAAP) grew 6%, driven by a 4% increase in concentrate sales and 2% growth in price/mix. Concentrate sales were 1 point behind unit case volume due to the timing of concentrate shipments.
Advertising expenses for the three months ended July 3, 2026 and June 27, 2025 were $1,565 million and $1,328 million, respectively. Advertising expenses for the six months ended July 3, 2026 and June 27, 2025 were $2,942 million and $2,417 million, respectively.
During the three months ended July 3, 2026, selling, general and administrative expenses were $3,720 million, compared to $3,470 million during the three months ended June 27, 2025, an increase of $250 million, or 7%. During the six months ended July 3, 2026, selling, general and administrative expenses were $7,192 million, compared to $6,704 million during the six months ended June 27, 2025, an increase of $488 million, or 7%. These increases were primarily due to increased marketing spending partly due to timing. Additionally, during the three and six months ended July 3, 2026, foreign currency exchange rate fluctuations increased selling, general and administrative expenses by 1% and 2%, respectively. These increases were partially offset by lower annual incentive expense and the impact of the sale of our finished product operations in Nigeria.
Corporate’s operating loss for the three months ended July 3, 2026 and June 27, 2025 was $256 million and $329 million, respectively. This decrease is primarily a result of lower annual incentive expense and lower other operating charges.
KO Earnings call on the quarter ended 2026-07-03 (results released 2026-07-28), transcript by roic.ai
We continue to monitor commodity volatility, but based on what we know today, we continue to believe the overall impact of our cost basket to be manageable. Divestitures are now expected to be a 2% to 3% headwind to comparable net revenues and an approximate 1% headwind to comparable earnings per share. This assumes the pending sale of Coca-Cola Beverages Africa closes towards the end of the third quarter or during the fourth quarter, subject to regulatory approvals. Based on current rates and our hedge positions, we now expect an approximate one-point currency tailwind to comparable net revenues and continue to expect an approximate three-point currency tailwind to comparable earnings per share for the full year 2026. Our underlying effective tax rate for 2026 is still expected to be 19.9%. All in, we now expect comparable earnings per share growth of 9% to 10% versus $3 in 2025. There are some considerations to keep in mind for the remainder of the year.
T0016
21
8-K filed 2026-07-28 (Items 2.02, 9.01)
First quarter 2026 financial results were impacted by six additional days as compared to first quarter 2025, and fourth quarter 2026 financial results will be impacted by six fewer days as compared to fourth quarter 2025. Unit case volume results for the quarters are not impacted by the variances in days due to the average daily sales computation referenced above.
KO Earnings call on the quarter ended 2026-07-03 (results released 2026-07-28), transcript by roic.ai
We expect concentrate shipments to lag unit case volume by a point during the third quarter, and now expect concentrate shipments to slightly trail unit case volume for the full year. We expect fourth quarter gross and operating margin to benefit from the refranchising of CCBA. Finally, as a reminder, due to a calendar shift, the fourth quarter will have six fewer days compared to the fourth quarter of 2025. To summarize, we are pleased with our strong first half performance. Our results demonstrate the effectiveness of our strategy and the advantages of our global system. We are focusing on staying close to our consumers and customers to create durable top-line growth and long-term value. As a result, we remain confident in our ability to deliver our updated 2026 guidance and our longer-term financial objectives. With that, operator, we are ready to take questions. Thank you. Ladies and gentlemen, to ask a question, you'll need to press *1 on your telephone.
T0017
23
8-K filed 2026-07-28 (Items 2.02, 9.01)
Third Quarter 2026 Considerations
Comparable net revenues (non-GAAP)
•Approx. 1% currency tailwind1 •Approx. 1% headwind from acquisitions and divestitures2
Comparable EPS (non-GAAP)
•Approx. 3% currency tailwind1 •Minimal headwind from acquisitions and divestitures2
Net cash provided by operating activities during the six months ended July 3, 2026 was $7,543 million, and net cash used in operating activities during the six months ended June 27, 2025 was $1,391 million. The increase was primarily driven by strong cash operating results, a benefit of the trade accounts receivable factoring program in the current year, lower income tax payments, a favorable impact due to foreign currency exchange rate fluctuations, lower net interest payments and lower annual incentive payments. These items were partially offset by the prior year transfer of surplus non-U.S. plan assets from pension trusts to general assets of the Company and unfavorable hedging activity.
Additionally, the activity in 2025 included $6,069 million of the $6,173 million final milestone payment for fairlife that was made during the six months ended June 27, 2025. Refer to Note 12 of Notes to Consolidated Financial Statements for additional information on our milestone payment for fairlife.
KO 10-K filed 2026-02-20 (the latest annual report)
At its February 2026 meeting, our Board of Directors increased our regular quarterly dividend to $0.53 per share, equivalent to a full year dividend of $2.12 per share in 2026. This is our 64th consecutive annual increase. Our annualized common stock dividend was $2.04 per share and $1.94 per share in 2025 and 2024, respectively.
The Company has a trade accounts receivable factoring program in certain countries. Under this program, we can elect to sell trade accounts receivables to unaffiliated financial institutions at a discount. In these factoring arrangements, for ease of administration, the Company collects customer payments related to the factored receivables and remits those payments to the financial institutions. The Company sold $7,011 million and $8,400 million of trade accounts receivables under this program during the six months ended July 3, 2026 and June 27, 2025, respectively. The costs of factoring such receivables were $27 million and $36 million for the six months ended July 3, 2026 and June 27, 2025, respectively. The cash received from the financial institutions is reflected within the operating activities section of our consolidated statement of cash flows.
Key financials — annual (USD millions; fiscal year ends in December; — = not reported, † = derived)
Metric
FY 2025
FY 2024
FY 2023
FY 2022
Period end
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Revenue
47,941
47,061
45,754
43,004
Gross profit
29,544
28,737
27,234
25,004
Gross margin % (derived: GP ÷ revenue)
61.6%
61.1%
59.5%
58.1%
Operating income
13,762
9,992
11,311
10,909
Net income
13,107
10,631
10,714
9,542
Operating cash flow
7,408
6,805
11,599
11,018
Capital expenditures
2,112
2,064
1,852
1,484
Free cash flow (derived: OCF − capex)
5,296
4,741
9,747
9,534
Stock-based compensation
279.0
286.0
254.0
356.0
Cash + short-term investments (period end)
13,872
12,848
12,363
10,562
Total debt (period end)
45,492
44,522
42,064
39,149
Stockholders' equity (period end)
32,169
24,856
25,941
24,105
Diluted shares, weighted avg (M)
4,313
4,320
4,339
4,350
Q0002
31
KO 10-Q filed 2026-07-29
, two of the recent decisions, the U.S. Supreme Court demonstrated how courts are to rule on agency interpretations and actions without the deference previously required by the Chevron case .
On August 2, 2024, the Tax Court entered a decision reflecting additional federal income tax of $ 2.7 billion for the 2007 through 2009 tax years. With applicable interest, the total liability for the 2007 through 2009 tax years resulting from the Tax Court’s decision is $ 6.0 billion, for which the IRS issued the Company invoices on September 3, 2024. The Company paid those invoices (“IRS Tax Litigation Deposit”) on September 10, 2024, which stopped interest from accruing on the additional tax due for the 2007 through 2009 tax years. That amount, plus interest earned, would be refunded in full or in part if the Company’s tax positions are ultimately sustained on appeal. For the three and six months ended July 3, 2026, the Company recorded net interest income of $ 43 million and $ 98 million, respectively, related to this tax payment. For the three and six months ended June 27, 2025, the Company recorded net interest income of $ 54 million and $ 107 million, respectively, related to this tax payment. These amounts were recorded in the line item income taxes in our consolidated statements of income, in accordance with our accounting policy. The payment of the IRS invoices and the related accrued interest were recorded in the line item other noncurrent assets in our consolidated balance sheets as of July 3, 2026 and December 31, 2025. On October 22, 2024, the Company appealed the Tax Court’s decision to the U.S. Court of Appeals for the Eleventh Circuit. The Company filed its principal appellate brief with the U.S. Court of Appeals for the Eleventh Circuit on March 12, 2025. The IRS filed its appellate brief on July 7, 2025. The Company filed its reply brief on August 27, 2025. The U.S. Court of Appeals for the Eleventh Circuit heard the case on June 25, 2026.
The Company’s conclusion that it is more likely than not the Company’s tax positions will ultimately be sustained on appeal is unchanged as of July 3, 2026. However, based on the required probability analysis and the accrual of interest through the current reporting period, we updated our tax reserve as of July 3, 2026 to $ 529 million.
KO 10-K filed 2026-02-20 (the latest annual report)
The Company calculated the potential impact of applying the Tax Court Methodology to reallocate income from foreign licensees potentially covered within the scope of the Opinions for the 2010 through 2025 tax years, assuming such methodology were to be ultimately upheld by the courts, and the IRS were to decide to apply that methodology to subsequent years, with consent of the federal courts. This impact would include taxes and interest accrued through December 31, 2025. The calculations incorporated the estimated impact of correlative adjustments to the previously accrued transition tax payable under the Tax Reform Act. The Company estimates that the potential aggregate remaining incremental tax and interest liability for the tax years 2010 through 2025 could be approximately $ 14 billion as of December 31, 2025. Additional income tax and interest on any unpaid potential liabilities for the 2010 through 2025 tax years would continue to accrue until the time any such potential liability, or portion thereof, were to be paid. We currently project the continued application of the Tax Court Methodology in 2026, assuming similar facts and circumstances as of December 31, 2025, would result in an incremental annual tax liability that would increase the Company’s effective tax rate by approximately 3.5 %.
3M case”) controlled as to the validity of those regulations. On October 1, 2025, the U.S. Court of Appeals for the Eighth Circuit issued an opinion reversing the judgment of the Tax Court in the 3M case.
In its decision, the court concluded that the blocked-income regulation was inconsistent with Internal Revenue Code (“IRC”) Section 482 and that the IRS therefore could not reallocate income from 3M’s subsidiary in Brazil to 3M in contravention of Brazilian restrictions on the payment of royalties. Further, the U.S. Court of Appeals for the Eighth Circuit specifically rejected the IRS’ argument that the ability of 3M’s subsidiary in Brazil to pay dividends, rather than royalties, meant that royalty income should not be treated as blocked. Both of these conclusions are highly supportive of the Company’s position in its case and reinforce its prior conclusions.
While we believe it is more likely than not that we will prevail in the tax litigation discussed above, we are confident that, between our ability to generate cash flows from operating activities and our ability to borrow funds at reasonable interest rates, we can manage the range of possible outcomes in the final resolution of the matter.
KO Earnings call on the quarter ended 2026-07-03 (results released 2026-07-28), transcript by roic.ai
Then finally, maybe just a refresh on how you would be thinking about capital allocation should you have a positive outcome? I know that's the topic we've covered, but given we seem to be getting a bit closer, I think it's important. Thank you. Thanks, Chris. Maybe just a refresh for those listening on where we are with the tax case. We had oral arguments at the end of June, and the timing of a decision from the appellate court is unknown at this stage. We have talked in the past about that being 6 to 12 months out, and that's about the best I can offer at the moment. Not a whole lot more to add to what our current views are beyond what we argued. We continue to have confidence that we will ultimately prevail. Then on best case, worst case outcomes, best-case scenario is we win the case and we will have recourse to what we've already deposited with the IRS. The worst case is we detail that in our financial disclosures.
T0026
37
KO 10-K filed 2026-02-20 (the latest annual report)
As of December 31, 2025, our long-term debt was rated “A+” by Standard & Poor’s and “A1” by Moody’s. Our commercial paper program was rated “A-1” by Standard & Poor’s and “P-1” by Moody’s. In assessing our credit strength, both rating agencies consider our capital structure (including the amount and maturity dates of our debt) and financial policies as well as the consolidated balance sheet and other financial information of the Company. In addition, certain rating agencies also consider the financial information of certain bottlers, including CCEP, Coke Consolidated, Coca-Cola FEMSA and CCHBC. While the Company has no legal obligation for the debt of these bottlers, the rating agencies believe the strategic importance of the bottlers to the Company’s business model provides the Company with an incentive to keep these bottlers viable. It is our expectation that these rating agencies will continue using this methodology. If our credit ratings were to be downgraded as a result of changes in our capital structure, our major bottlers’ financial performance, changes in the credit rating agencies’ methodology in assessing our credit strength, or for any other reason, our cost of borrowing could increase. Additionally, if the credit ratings of certain bottlers in which we have equity method investments were to decline, the Company’s equity income could be reduced as a result of the potential increase in interest expense for those bottlers.
The Company’s cash, cash equivalents, short-term investments and marketable securities totaled $16.4 billion as of July 3, 2026. In addition to these funds, our commercial paper program, and our ability to issue long-term debt, we had $6.6 billion in unused backup lines of credit for general corporate purposes as of July 3, 2026. These backup lines of credit expire at various times through 2031.
Loans and notes payable consist primarily of commercial paper issued in the United States. As of December 31, 2025, we had $ 1,495 million in outstanding commercial paper borrowings. We had no outstanding commercial paper borrowings as of July 3, 2026.
Cash and debt: $13.5B of cash and short-term investments against $43.5B of debt, $6.5B of it due within 12 months (as of Jul 3, 2026). The $6.5B due within 12 months is 48% of the cash and short-term investments; FY 2025 operating cash flow of $7.4B covers it.
Years of cash flow to repay debt: about 5.9 (FY 2025 operating cash flow $7.4B; under 3 is comfortable for most companies).
Cash burn: none. Operating cash flow was positive in FY 2025 and over the last two quarters.
Cash per $1 of profit: $0.57 in FY 2025, $0.64 in FY 2024 (operating cash flow ÷ net income; about $1 or more is normal).
Short-term assets cover bills due within a year 1.3 times (as of Jul 3, 2026; current ratio; about 1.5 or more is comfortable for most companies, below 1 means near-term bills exceed them).
Q0005
41
KO 10-Q filed 2026-07-29
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
July 3, 2026
December 31, 2025
ASSETS
Current Assets
Cash and cash equivalents
$
12,907
$
10,270
Short-term investments
622
3,602
Total Cash, Cash Equivalents and Short-Term Investments
13,529
13,872
Marketable securities
2,842
1,934
Trade accounts receivable, less allowances of $492 and $495, respectively
3,732
3,038
Inventories
4,647
4,425
Prepaid expenses and other current assets
2,688
2,433
Assets held for sale
5,438
5,342
Total Current Assets
32,876
31,044
Equity method investments
20,782
20,235
Deferred income tax assets
1,090
1,206
Property, plant and equipment, less accumulated depreciation of $9,328 and $9,119, respectively
9,636
9,613
Trademarks with indefinite lives
12,500
12,531
Goodwill
15,456
15,491
Other noncurrent assets
15,582
14,696
Total Assets
$
107,922
$
104,816
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses
$
15,434
$
14,813
Loans and notes payable
48
1,551
Current maturities of long-term debt
6,494
1,822
Accrued income taxes
782
525
Liabilities held for sale
2,442
2,570
Total Current Liabilities
25,200
21,281
Long-term debt
37,001
42,119
Other noncurrent liabilities
4,627
4,735
Deferred income tax liabilities
2,779
2,406
The Coca-Cola Company Shareowners’ Equity
Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares
1,760
1,760
Capital surplus
20,741
20,581
Reinvested earnings
84,169
80,382
Accumulated other comprehensive income (loss)
(13,626)
(14,131)
Treasury stock, at cost — 2,737 and 2,738 shares, respectively
(56,894)
(56,423)
Equity Attributable to Shareowners of The Coca-Cola Company
KO 10-K filed 2026-02-20 (the latest annual report)
Our global presence and strong capital position give us access to key financial markets around the world, enabling us to borrow funds at a low effective cost. This posture, coupled with active management of our mix of short-term and long-term debt as well as our mix of fixed-rate and variable-rate debt, results in a lower overall cost of borrowing. Our debt management policies, in conjunction with our share repurchase program and investment activity, can result in current liabilities exceeding current assets.
KO Earnings call on the quarter ended 2026-07-03 (results released 2026-07-28), transcript by roic.ai
Our balance sheet remains strong, with our net debt leverage of 1.4 times EBITDA, which is below our target range of 2 to 2.5 times. Given the momentum of our business and the strength of our balance sheet, we have increased flexibility and optionality to continue to both reinvest in our business and return capital to shareowners. With respect to our ongoing dispute with the US Internal Revenue Service, we recently presented oral arguments before the 11th Circuit Court of Appeals. We appreciate the opportunity to present our position and now await the court's decision. Ultimately, our stance is unchanged. We will continue to vigorously defend our overall position and remain confident in our chances of prevailing on appeal. Let me now provide a brief update on fairlife. The majority of production operations have resumed at our four facilities in the US, and retail availability has been largely unimpacted.
T0014
44
KO 10-Q filed 2026-07-29
Other Fair Value Disclosures
The carrying values of cash and cash equivalents, short-term investments, trade accounts receivable, accounts payable and accrued expenses, and loans and notes payable approximate their fair values because of the relatively short-term maturities of these financial instruments. The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for those instruments. Where quoted prices are not available, the fair value is estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of the debt instruments. As of July 3, 2026, the carrying value and fair value of our long-term debt, including the current portion, were $ 43,495 million and $ 38,825 million, respectively. As of December 31, 2025, the carrying value and fair value of our long-term debt, including the current portion, were $ 43,941 million and $ 39,385 million, respectively.
The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheets (in millions):
Capital structure, dilution and financing activity
Shares outstanding (cover page, Entity Common Stock Shares Outstanding): 4,303M at 2026-07-27; 4,302M at 2026-04-28; 4,301M at 2026-02-18; 4,302M at 2025-10-21; 4,304M at 2025-07-22.
Shares outstanding year over year: -0.0% (4,303M at 2026-07-27 vs 4,304M at 2025-07-22, 370 days apart).
Weighted-average diluted shares: 4,313M in Q2 2026 vs 4,315M in Q2 2025 (-0.0%).
Stock-based compensation: $279.0M in FY 2025 (0.6% of revenue).
Q0007
47
KO 10-Q filed 2026-07-29
Purchases of Stock for Treasury
During the six months ended July 3, 2026, the total cash outflow for treasury stock purchases was $663 million. The Company repurchased 7.3 million shares of common stock under the share repurchase plan authorized by our Board of Directors. These shares were repurchased at an average cost of $75.53 per share, for a total cost of $549 million. In addition to shares repurchased under the share repurchase plan, the Company’s treasury stock activity included shares surrendered to the Company to pay the exercise price and/or to satisfy tax withholding obligations in connection with stock swap exercises of employee stock options and/or the vesting of restricted stock issued to employees. The net impact of the Company’s issuances of stock and share repurchases during the six months ended July 3, 2026 resulted in a net cash outflow of $412 million.
Our current capital allocation priorities are as follows: investing wisely to support our business operations, continuing to grow our dividend payment, enhancing our beverage portfolio and capabilities through consumer-centric acquisitions, and using excess cash to repurchase shares over time. We currently expect 2026 capital expenditures to be approximately $2.2 billion. During 2026, we expect to repurchase shares to offset dilution resulting from employee stock-based compensation.
As of July 3, 2026, we were contingently liable for guarantees of indebtedness owed by third parties of $ 874 million, of which $ 61 million was related to variable interest entities. Our guarantees are primarily related to third-party customers, bottlers and vendors and have arisen through the normal course of business. These guarantees have various terms, and none of these guarantees is individually significant. These amounts represent the maximum potential future payments that we could be required to make under the guarantees. However, management has concluded that the likelihood of any significant amounts being paid by our Company under these guarantees is remote.
During the three months ended July 3, 2026, other income (loss) — net was income of $370 million. The Company recognized a net gain of $320 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities, dividend income of $38 million and net foreign currency exchange losses of $37 million. The Company also recorded a $66 million reduction in the previously recorded impairment charge related to our bottling operations in Africa, which are held for sale. This reduction is based on management’s revised estimates. Other income (loss) — net also included $14 million of costs related to our trade accounts receivable factoring program.
Unrealized Gains and Losses on Equity and Trading Debt Securities
The company excludes the net impact of unrealized gains and losses resulting from mark-to-market adjustments on our equity and trading debt securities from our non-GAAP financial information until the period in which the underlying securities are sold and the associated gains or losses are realized, unless individually significant. Management believes this adjustment provides meaningful information related to the impact of our investments in equity and trading debt securities. During the three and six months ended July 3, 2026, the net impact of the company’s adjustment related to unrealized gains and losses on our equity and trading debt securities resulted in decreases of $247 million and $161 million, respectively, to our non-GAAP income before income taxes.
In October 2025, the Company entered into a definitive agreement to sell a portion of our interest in our bottling operations in Africa to Coca-Cola HBC AG (“CCHBC”), an equity method investee. Closing is subject to various regulatory approvals and is expected by the end of 2026, upon which we will deconsolidate these bottling operations. We have also agreed to a separate option arrangement for CCHBC to acquire the Company’s remaining 25% ownership interest within a six-year period from closing. As these operations met the criteria to be classified as held for sale, during the year ended December 31, 2025, we were required to record the related assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the estimated proceeds. This resulted in an impairment charge of $ 1,274 million, primarily due to the negative net foreign currency translation adjustments that will be reclassified to income upon sale. During the three and six months ended July 3, 2026, we recorded a gain to reduce this impairment charge by $ 66 million and $ 56 million, respectively, based on management’s revised estimates. These amounts were recorded in the line item other income (loss) — net in our consolidated statements of income.
The company excludes the net impact of mark-to-market adjustments for outstanding hedges and realized gains/losses for settled hedges from our non-GAAP financial information until the period in which the underlying exposure being hedged impacts our consolidated statement of income. Management believes this adjustment provides meaningful information related to the impact of our economic hedging activities. During the three and six months ended July 3, 2026, the net impact of the company’s adjustment related to our economic hedging activities resulted in an increase of $56 million and a decrease of $30 million, respectively, to our non-GAAP income before income taxes.
The Company recorded income taxes of $ 1,037 million ( 18.9 % effective tax rate) and $ 993 million ( 20.7 % effective tax rate) during the three months ended July 3, 2026 and June 27, 2025, respectively. The Company recorded income taxes of $ 1,682 million ( 16.7 % effective tax rate) and $ 1,715 million ( 19.4 % effective tax rate) during the six months ended July 3, 2026 and June 27, 2025, respectively.
The Company’s effective tax rates for the three and six months ended July 3, 2026 included $ 40 million and $ 319 million, respectively, of net tax benefits related to various discrete tax items, including net interest income of $ 43 million and $ 98 million, respectively, related to the IRS Tax Litigation Deposit recorded in the line item income taxes in our consolidated statements of income, in accordance with our accounting policy. The Company’s effective tax rates for the three and six months ended July 3, 2026 also included net tax expense of $ 13 million and a net tax benefit of $ 181 million, respectively, primarily related to return to provision adjustments.
At the end of each quarter, we make our best estimate of the effective tax rate expected to be applicable for the full fiscal year. This estimate reflects, among other items, our best estimate of operating results and foreign currency exchange rates. Based on current tax laws, including the impact of several countries enacting global minimum tax regulations, the Company’s effective tax rate in 2026 is expected to be approximately 19.9% before considering the potential impact of any significant operating and nonoperating items that may affect our effective tax rate. This rate does not include the impact of the ongoing tax litigation with the IRS, if the Company were not to prevail.
KO 10-K filed 2026-02-20 (the latest annual report)
Based on current tax laws, including the impact of several countries enacting global minimum tax regulations, the Company’s effective tax rate in 2026 is expected to be approximately 20.9%, before considering the potential impact of any significant operating and nonoperating items that may affect our effective tax rate. This rate does not include the impact of the ongoing tax litigation with the IRS, if the Company were not to prevail.
During the three months ended December 31, 2025, the operating results related to our BodyArmor sports performance and hydration beverage business, combined with lower expectations of future performance compared to the original forecasts, triggered the need to update the Company’s impairment analysis, including a reassessment of the business projections for the trademark. Based on this assessment, the Company concluded that the fair value of the trademark was less than its carrying value and recorded an impairment charge of $960 million. The decrease in fair value was primarily driven by the revised projections of future operating results, including a slowing of the projected long-term growth rate for the category, an intensifying competitive environment, and more focused innovation and international rollout plans. The remaining carrying value of the trademark is $2,440 million. As of July 3, 2026, the fair value of this trademark approximates its carrying value. If the near-term operating results of this trademark do not achieve our revised financial projections, or if the macroeconomic conditions change, causing the discount rate to increase without an offsetting increase in the operating results, it is likely that we would be required to recognize an additional impairment charge. Management will continue to monitor the fair value of this trademark in future periods.
KO 10-K filed 2026-02-20 (the latest annual report)
3 During the years ended December 31, 2025 and 2024, the Company recorded asset impairment charges of $ 960 million and $ 760 million, respectively, related to our BodyArmor trademark in North America. The 2025 impairment charge was primarily driven by revised projections of future operating results, including a slowing of the projected long-term growth rate for the category, an intensifying competitive environment, and more focused innovation and international rollout plans. The 2024 impairment charge was primarily driven by revised projections of future operating results and higher discount rates resulting from changes in macroeconomic conditions since the acquisition date. The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs. These charges were recorded in the line item other operating charges in our consolidated statements of income. The remaining carrying value of the trademark is $ 2,440 million.
When we analyze our net operating revenues, we generally consider the following factors: (1) volume growth (concentrate sales volume or unit case volume, as applicable); (2) changes in price/mix; (3) foreign currency exchange rate fluctuations; and (4) acquisitions and divestitures (including structural changes as defined below), as applicable. Refer to the heading “Net Operating Revenues” below. The Company sells concentrates and syrups to both consolidated and unconsolidated bottling partners. The ownership structure of our bottling partners impacts the timing of recognizing concentrate revenue and concentrate sales volume. When we sell concentrates or syrups to our consolidated bottling partners, we do not recognize the concentrate revenue or concentrate sales volume until the bottling partner has sold finished products manufactured from the concentrates or syrups to a third party. When we sell concentrates or syrups to our unconsolidated bottling partners, we recognize the concentrate revenue and concentrate sales volume when the concentrates or syrups are sold to the bottling partner. The subsequent sale of the finished products manufactured from the concentrates or syrups to a third party does not impact the timing of recognizing the concentrate revenue or concentrate sales volume. When we account for an unconsolidated bottling partner as an equity method investment, we eliminate the intercompany profit related to concentrate sales to the extent of our ownership interest, until the equity method investee has sold finished products manufactured from the concentrates or syrups to a third party. We typically report unit case volume when finished products manufactured from the concentrates or syrups are sold to a third party, regardless of our ownership interest in the bottling partner, if any.
The Company, under the supervision and with the participation of its management, including the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s “disclosure controls and procedures” (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”)) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of July 3, 2026.
Changes in Internal Control Over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting during the quarter ended July 3, 2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
KO 10-K filed 2026-02-20 (the latest annual report)
Accounting for uncertain tax positions
Description of the Matter
As described in Note 12 and Note 15 to the Company’s consolidated financial statements, the Company is involved in various income tax matters for which the ultimate outcomes are uncertain. As of December 31, 2025, the gross amount of unrecognized tax benefits was $857 million. Auditing the amount of unrecognized tax benefits associated with some of management’s uncertain tax positions was especially challenging due to the level of subjectivity and significant judgment associated with the recognition and measurement of the tax position.
How We Addressed the Matter in Our Audit
We obtained an understanding, evaluated the design, and tested the effectiveness of controls over the Company’s accounting process for uncertain tax positions. Our procedures included testing controls addressing the completeness of uncertain tax positions, controls relating to the identification and recognition of the uncertain tax positions, controls over the measurement of the unrecognized tax benefit, and controls over the identification of developments related to existing uncertain tax positions. Our audit procedures included, among others, evaluating the assumptions the Company used to assess some of its uncertain tax positions and related unrecognized tax benefit amounts by jurisdiction. We also tested the completeness and accuracy of the underlying data used in the identification and measurement of uncertain tax positions. We evaluated evidence of management’s assessment of specific uncertain tax positions, including inquiries of tax counsel, inspection of technical memos, and written representations of management. For certain assessments, we involved professionals with specialized skill and knowledge to assist in our evaluation of the tax technical merits of the Company’s assessments, including the assessments of whether the tax positions are more likely than not to be sustained, the amount of the potential benefits to be realized, and the application of relevant tax law. We also assessed the Company’s disclosures of uncertain tax positions included in Note 12 and Note 15.
Valuation of trademarks with indefinite lives
Description of the Matter
Included in the Company’s consolidated financial statements are trademarks with indefinite lives of $12.5 billion as of December 31, 2025. As described in Note 1, management performs an annual impairment test of its indefinite-lived intangible assets, including trademarks with indefinite lives. Each impairment test may be qualitative or quantitative. Management performs their annual impairment tests as of June 28, 2025, and more frequently if events or circumstances indicate that assets might be impaired. The Company recorded an asset impairment charge of $960 million during the year ended December 31, 2025, related to their BodyArmor trademark in North America. Auditing the valuation of certain indefinite-lived trademarks with indefinite lives involved complex judgment due to the significant estimation required by management in determining the fair value of the trademarks with indefinite lives. Significant assumptions used in certain of the Company’s trademark fair value estimates included revenues, royalty rates, long-term growth rates, and discount rates, as applicable.
How We Addressed the Matter in Our Audit
We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s interim review of impairment indicators, interim impairment tests, and annual impairment tests for certain trademarks with indefinite lives. For example, we tested management’s risk assessment process to determine whether to perform a quantitative or qualitative test, management’s control over the evaluation of interim impairment indicators, and management’s review controls over certain of the valuation models and underlying assumptions used to develop such estimates.
Each flag is a deterministic check on the filings or XBRL data, with the triggering evidence quoted. No flag means the check did not fire, not that the risk is absent.
Q0009
66
8-K filed 2026-07-16 (Items 8.01)
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. ☐
Item 8.01. Other Events.
On July 16, 2026, The Coca-Cola Company (the “Company”) announced that fairlife, LLC (“fairlife”), a dairy company owned by the Company, identified unauthorized access by a third party to a portion of its systems, including its production-related systems, in connection with a ransomware event.
After detecting the issue, the Company promptly activated its incident response and business continuity protocols. The Company’s investigation and assessment of the impact of the incident is ongoing, with the assistance of outside advisors and cybersecurity experts. The Company has also notified law enforcement.
Product quality and safety have not been impacted. However, as a result of the incident, production operations at fairlife in the United States are temporarily suspended. fairlife’s Canada production operations are not currently impacted.
The Company is working diligently to complete the investigation and restore the systems and impacted operations. The full scope, nature and impacts of the incident are not yet known. Accordingly, the Company has not yet determined whether the incident is reasonably likely to materially affect the Company.
The information in this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
As previously disclosed in the Company’s Current Report on Form 8-K filed on July 16, 2026, the Company announced a ransomware event at its fairlife operations in the U.S., which are a part of the North America operating segment. The event involved unauthorized access by a third party to a portion of fairlife’s systems and the taking of certain data, and led to a temporary suspension of production operations. A majority of production operations have resumed, and based on the information currently available and the Company’s investigation to date, the Company believes that the incident has not had, and is not reasonably likely to have, a material impact on the Company’s financial condition or results of operations.
KO Earnings call on the quarter ended 2026-07-03 (results released 2026-07-28), transcript by roic.ai
There was no impact to our second quarter results, nor do we anticipate any material impact to our results in the second half. As previously discussed, we anticipate our Webster facility to continue ramping up capacity through the remainder of the year. I want to recognize our fairlife and Coca-Cola teams for their swift action and dedication. Now let me turn to guidance. While the external environment remains uncertain, our strong first half performance and business flexibility give us confidence in our updated outlook for the year. Based on our year-to-date results and expectations for the balance of the year, including six fewer days in the fourth quarter, we expect to deliver at the high end of our prior revenue guidance, with organic revenue growth of approximately 5%. We now expect comparable currency-neutral earnings per share growth, excluding acquisitions and divestitures, of 7% to 8%.
T0015
69
KO 10-K filed 2026-02-20 (the latest annual report)
ITEM X. INFORMATION ABOUT OUR EXECUTIVE OFFICERS
The following are the executive officers of our Company as of February 20, 2026:
Name
Age
Executive Vice President since January 2024. Global Chief Marketing Officer since January 2020 and, prior to that, President of the Asia Pacific Group from January 2019 to December 2020. President of the Mexico business unit from July 2017 to December 2018, and prior to that, General Manager for Iberia from February 2017. Prior to rejoining the Company in February 2017, Chief Executive Officer of Deoleo, S.A., a Spanish multinational olive oil processing company, from May 2015 to September 2016, and Senior Vice President and President, Asia Pacific, of S.C. Johnson & Son, Inc., a multinational consumer product manufacturer, from September 2014 to May 2015. President of the Company’s ASEAN business unit from 2010 to August 2014. Effective March 31, 2026, Mr. Arroyo will assume the Company’s customer and commercial leadership responsibilities and become Global Chief Marketing and Customer Commercial Officer.
Name
Age
Chairman of the Board of Directors since April 2019 and Chief Executive Officer since May 2017. Elected to the Board of Directors in April 2017. President from August 2015 to December 2018, and Chief Operating Officer from August 2015 to April 2017. He will step down as Chief Executive Officer effective March 31, 2026, on which date he will transition to Executive Chairman.
Item
5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers. |
On June 25, 2026, The Coca-Cola Company (the “Company”) announced
that Jennifer Mann, Executive Vice President and President, North America Operating Unit, will be departing the Company. Effective July
31, 2026, Ms. Mann will step down from her current positions. Beginning on August 1, 2026, she will continue with the Company as a senior
advisor until April 30, 2027. Effective August 1, 2026, John Murphy, President and Chief Financial Officer, will assume responsibility
for the North America Operating Unit on an interim basis.
Pre-arranged plan sales (Rule 10b5-1): 14 sell(s) totaling $115,823,481
Unique active insiders: 7
% of holding: the shares traded as a share of that one holding (direct, or one trust or fund) before a sale or after a purchase, not of everything the insider owns.
I0001
73
SEC Form 4 activity (as of 2026-10-09)
Per-Insider Summary (all transactions)
Insider
Role
Buys
Chosen Sells
Pre-arranged Sells
Txns
Period
Quincey James
Chairman, Director
$0
$15,780,900
$83,067,768
5
2026-05-07 → 2026-07-29
MANN JENNIFER K
Executive Vice President
$0
$0
$25,967,090
8
2026-06-05 → 2026-06-10
Pietracci Bruno
President, Latin America OU
$0
$10,126,453
$6,788,624
5
2026-07-28 → 2026-08-20
MURPHY JOHN
President and CFO
$0
$13,313,580
$0
1
2026-07-31
QUAN NANCY
Executive Vice President
$0
$7,078,779
$0
2
2026-05-15 → 2026-08-19
Ortega Luisa
Europe OU President
$0
$4,827,894
$0
2
2026-08-06
Ray Sanket
President INSWA
$0
$861,367
$0
1
2026-08-10
I0002
74
SEC Form 4 activity (as of 2026-10-09)
Chosen Trades (not pre-arranged) and All Buys (complete, 10)
Date
Insider
Position
Action
Shares
Price
Value
% of holding
Type
2026-08-20
Pietracci Bruno
President, Latin America OU
SELL
41,365
$90.93
$3,761,332
100.00%
Chosen (open market)
2026-08-20
Pietracci Bruno
President, Latin America OU
SELL
40,754
$90.93
$3,705,773
100.00%
Chosen (open market)
2026-08-20
Pietracci Bruno
President, Latin America OU
SELL
29,246
$90.93
$2,659,348
100.00%
Chosen (open market)
2026-08-19
QUAN NANCY
Executive Vice President
SELL
50,000
$90.39
$4,519,260
18.29%
Chosen (open market)
2026-08-10
Ray Sanket
President INSWA
SELL
9,958
$86.50
$861,367
13.82%
Chosen (open market)
2026-08-06
Ortega Luisa
Europe OU President
SELL
19,772
$86.67
$1,713,681
43.00%
Chosen (open market)
2026-08-06
Ortega Luisa
Europe OU President
SELL
35,983
$86.55
$3,114,214
54.22%
Chosen (open market)
2026-07-31
MURPHY JOHN
President and CFO
SELL
152,483
$87.31
$13,313,580
35.26%
Chosen (open market)
2026-05-15
QUAN NANCY
Executive Vice President
SELL
31,625
$80.93
$2,559,519
12.40%
Chosen (open market)
2026-05-07
Quincey James
Chairman, Director
SELL
200,000
$78.90
$15,780,900
71.90%
Chosen (open market)
I0003
75
SEC Form 4 activity (as of 2026-10-09)
Pre-arranged Plan Sales (Rule 10b5-1) (complete, 14)
Date
Insider
Position
Action
Shares
Price
Value
% of holding
Type
2026-07-29
Quincey James
Chairman, Director
SELL
145,947
$90.09
$13,148,978
54.30%
Pre-arranged (Rule 10b5-1)
2026-07-28
Quincey James
Chairman, Director
SELL
381,140
$90.04
$34,319,637
75.63%
Pre-arranged (Rule 10b5-1)
2026-07-28
Pietracci Bruno
President, Latin America OU
SELL
35,393
$89.60
$3,171,213
100.00%
Pre-arranged (Rule 10b5-1)
2026-07-28
Pietracci Bruno
President, Latin America OU
SELL
40,334
$89.69
$3,617,411
100.00%
Pre-arranged (Rule 10b5-1)
2026-06-10
MANN JENNIFER K
Executive Vice President
SELL
23,984
$83.41
$2,000,594
13.22%
Pre-arranged (Rule 10b5-1)
2026-06-09
MANN JENNIFER K
Executive Vice President
SELL
18,830
$80.75
$1,520,483
8.32%
Pre-arranged (Rule 10b5-1)
2026-06-09
MANN JENNIFER K
Executive Vice President
SELL
55,154
$80.75
$4,453,570
21.01%
Pre-arranged (Rule 10b5-1)
2026-06-09
MANN JENNIFER K
Executive Vice President
SELL
26,016
$80.75
$2,100,737
12.54%
Pre-arranged (Rule 10b5-1)
2026-06-08
MANN JENNIFER K
Executive Vice President
SELL
51,606
$79.46
$4,100,458
19.92%
Pre-arranged (Rule 10b5-1)
2026-06-08
MANN JENNIFER K
Executive Vice President
SELL
48,394
$79.46
$3,845,174
18.92%
Pre-arranged (Rule 10b5-1)
2026-06-05
MANN JENNIFER K
Executive Vice President
SELL
80,820
$79.46
$6,422,038
28.04%
Pre-arranged (Rule 10b5-1)
2026-06-05
MANN JENNIFER K
Executive Vice President
SELL
19,180
$79.46
$1,524,035
8.47%
Pre-arranged (Rule 10b5-1)
2026-06-05
Quincey James
Chairman, Director
SELL
436,296
$80.13
$34,959,133
78.03%
Pre-arranged (Rule 10b5-1)
2026-06-04
Quincey James
Chairman, Director
SELL
8,000
$80.00
$640,019
6.11%
Pre-arranged (Rule 10b5-1)
I0004
76
KO 10-Q filed 2026-07-29
Item 5. Other Information
During the fiscal quarter ended July 3, 2026, none of our Directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
KO 10-K filed 2026-02-20 (the latest annual report)
Additionally, the activity in 2025 included $6.1 billion of the $6.2 billion final milestone payment for fairlife. The activity in 2024 included the $6.0 billion IRS Tax Litigation Deposit.
2 Current column assumes the pending sale of our bottling operations in Africa closes towards the end of the third quarter or during the fourth quarter of 2026 and prior column assumes the pending sale of our bottling operations in Africa closes during the second half of 2026. Closing is subject to regulatory approvals.
KO 10-K filed 2026-02-20 (the latest annual report)
Indefinite-Lived Intangible Assets
Impairment tests for indefinite-lived intangible assets must be performed at least annually, or more frequently if events or circumstances indicate that an asset may be impaired. Our Company performs the annual impairment tests as of the first day of our third fiscal quarter. We perform impairment tests using various valuation methodologies, including discounted cash flow models and a market approach, to determine the fair value of the indefinite-lived intangible asset or the reporting unit, as applicable. The ability to accurately predict future cash flows, especially in emerging and developing markets, may impact the determination of fair value. When performing these impairment tests, we estimate the fair values of the assets using management’s best assumptions, which we believe are consistent with those a market participant would use. The estimates and assumptions used in these tests are evaluated and updated as appropriate.
4 Concentrate sales volume represents the amount of concentrates, syrups, source waters and powders/minerals (in all instances expressed in unit case equivalents) sold by, or used in finished beverages sold by, the Company to its bottling partners or other customers and is not based on average daily sales. For Costa non-ready-to-drink beverage products, concentrate sales volume represents the amount of beverages, primarily measured in number of transactions (in all instances expressed in unit case equivalents), sold by the Company to customers or consumers and is not based on average daily sales. Each of our quarters, other than the fourth quarter, ends on the Friday closest to the last day of the corresponding quarterly calendar period. As a result, the first quarter of 2026 had six additional days when compared to the first quarter of 2025, and the fourth quarter of 2026 will have six fewer days when compared to the fourth quarter of 2025.
During the six months ended July 3, 2026 and June 27, 2025, the Company paid dividends of $4,562 million and $2,283 million, respectively. As a result of the timing of our quarterly reporting periods as well as our dividend payment dates, the Company paid all of the 2026 second quarterly dividend in the second quarter and paid substantially all of the 2025 second quarterly dividend in the third quarter.