The Coca-Cola Company (NYSE: KO) stock fell 0.65% post second-quarter earnings. Revenue was $12.5 billion, missing expectations slightly, but EPS of 87 cents beat estimates by 4 cents. Earnings growth was tied to strong margin growth, with gross margin up 160 basis points YOY and operating margin up 324 basis points.

Despite a decline in unit case volume in most regions, Coca-Cola’s earnings surpassed estimates, driven by margin growth. The company expects more margin recovery in the second half due to easing input cost inflation. Revenue growth will focus on product mix and volume rather than price-driven growth.

Coca-Cola plans to introduce a cane sugar version as an alternative to high-fructose corn syrup products. This move aligns with the company’s brand-focused strategy. Regulation concerns may arise due to sugar-related health issues, potentially affecting labeling, marketing, trade, labor, and environmental aspects.

KO stock, up 11% in 2025, is consolidating since April and seeks a catalyst for growth. Trading near $68.90, it’s close to the 52-week middle range, making it a potential value play. The stock’s dividend is stable at 2.94%, trading below analysts’ consensus price target of $77.13, with revenue diversification outside the U.S.

Read more at Nasdaq: Coca-Cola Q2 Margins Rise; Is KO Stock Undervalued?