Coca-Cola’s Q4 2025 results showcased improvements in free cash flow, impacting dividend payments. Despite a negative free cash flow payout ratio in 2025, the company’s adjusted free cash flow covered dividends and buybacks. Forecast calls for a 7% growth in 2026, bolstering its status as a Dividend King with over 60 years of distribution increases.

The mixed Q4 report from Coca-Cola revealed a 5% organic growth driven by concentrate sales and price/mix increases. Margins, while contracting due to one-off expenses, remained strong with adjusted earnings of 58 cents, beating analyst consensus. Guidance slightly missed expectations but is anticipated to improve, with a Wells Fargo price target increase to $87.

Institutional data indicates accumulation of KO stock in 2026, with institutions owning over 70% of shares. Post-release price action was mixed, with a pullback followed by buyer support, suggesting an intact uptrend. Analyst sentiment aligns with potential near-term upside of $7 to $10 from early February highs, indicating a bullish outlook for Coca-Cola’s stock.

Read more at NASDAQ.: No Rally? Coca-Cola’s Results Still Look Like a Sweet Deal