Powerade Power Water Launch Could Be a Game Changer for Coca-Cola (KO)

• The Coca-Cola Company recently launched Powerade Power Water, its first new product under the Powerade brand in over five years, aiming to expand within the functional hydration segment in the US and beyond.
• This move comes as investors await Coca-Cola's third-quarter 2025 earnings report later this month, with market watchers focused on the company's ability to reinforce growth through product innovation in functional beverages.
• We’ll explore how Coca-Cola’s entry into functional waters could reshape its investment narrative and future revenue growth outlook.

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Coca-Cola Investment Narrative Recap

Owning Coca-Cola often comes down to believing in the company's ability to maintain global beverage leadership through brand strength, innovation, and resilient cash flows, even as consumer trends evolve. The recent launch of Powerade Power Water may bolster near-term excitement around innovation, but the main short-term focus remains on the upcoming Q3 2025 earnings report; the most important risk continues to be shifting health preferences and regulatory scrutiny on sugar-sweetened beverages, and this new functional water does not materially change that risk in the immediate term.

Alongside this product launch, Coca-Cola's consistent dividend increases remain a steady highlight for investors. The dividend was most recently raised by 5.2% in February, marking the 63rd consecutive annual increase, a sign of the company's intent to deliver shareholder returns, even as new products aim to expand reach in growth categories.

But as innovation accelerates, it is increased competition in functional and health drinks that investors should not overlook...

Read the full narrative on Coca-Cola (it's free!)

Coca-Cola's narrative projects $55.1 billion in revenue and $14.8 billion in earnings by 2028. This requires 5.4% yearly revenue growth and a $2.6 billion earnings increase from $12.2 billion currently.

Uncover how Coca-Cola's forecasts yield a $78.70 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Twenty-seven members of the Simply Wall St Community currently see Coca-Cola’s fair value anywhere from US$54.61 to US$93.40 per share. Some expect growth to be challenged by regulatory and health-conscious shifts, making it important to compare multiple viewpoints as you form your own outlook.

Explore 27 other fair value estimates on Coca-Cola - why the stock might be worth 18% less than the current price!

Build Your Own Coca-Cola Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Coca-Cola research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Coca-Cola research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Coca-Cola's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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