Coca-Cola stock dropped 4% after CEO James Quincey gave a cautious outlook for 2026, citing pressure on international sales. Despite 5% organic revenue growth in Q4, the company expects 4%-5% growth in 2026, below analyst expectations. Sales in Asia Pacific were flat, with challenges in China, India, and Mexico.

In North America, Coca-Cola saw 1% volume growth and 4% price increase in Q4 as consumers shift to less sugary options. Coke Zero Sugar volumes rose 13% in Q4, while Diet Coke and Coca-Cola Light were up 2%. The company noted growth in protein and hydration products like Fairlife and BodyArmor.

Coca-Cola is testing a prebiotic soda, Simply Pop, to compete with PepsiCo’s Poppi acquisition. Quincey mentioned slow progress but drew on insights from Coca-Cola Plus in Japan for future growth. Consumer spending habits in the US remain divided, with lower-income consumers focusing on value-based shopping.

Quincey emphasized the company’s focus on affordability and adapting to changing consumer habits. Despite challenges in international markets, Coca-Cola is optimistic about growth opportunities and continues to innovate to meet consumer demands.

Read more at Yahoo Finance: Coca-Cola stock sinks on disappointing outlook as Coke Zero, water power surprise sales increase