Johnson & Johnson (NYSE:JNJ) and Coca-Cola (NYSE:KO) both closed out 2025 with Q4 earnings and have raised dividends for 63 consecutive years. But beneath that shared milestone sit two different growth engines, two different risk profiles, and two different answers to what "reliable" means for investors today.

Johnson & Johnson (JNJ) reported Q4 revenue of $24.56B, up 9.1% YoY, with Innovative Medicine generating $15.76B and oncology drug DARZALEX surging 26.6% to $3.90B.

Coca-Cola (KO) reported Q4 revenue of $11.82B, missing consensus by 2.7%, while Zero Sugar posted 13% unit case volume growth and the company took a $960M BODYARMOR impairment.

J&J is aggressively reshaping its portfolio through acquisitions and spinoffs while investing $55B in biotech pipelines, whereas Coca-Cola is moving toward an asset-light model through refranchising, with both companies facing distinct growth challenges: J&J must offset STELARA biosimilar erosion while Coca-Cola must sustain pricing power amid volume declines in Asia Pacific.

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Johnson & Johnson closed the fourth quarter with $24.56B in revenue, up 9.1% year over year, beating the consensus estimate of $24.13B. Innovative Medicine generated $15.76B, up 10%.

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DARZALEX reached $3.90B in the quarter, up 26.6%. TREMFYA surged 67.6% to $1.58B. CAR-T therapy CARVYKTI climbed 65.8% to $555M. CEO Joaquin Duato called 2025 "a catapult year for Johnson & Johnson, fueled by the strongest portfolio and pipeline in our history."

Coca-Cola's revenue came in at $11.82B, missing the $12.15B consensus by 2.7%, while organic revenue grew 5%. Currency headwinds and refranchising distort the headline. Coca-Cola Zero Sugar posted unit case volume growth of 13% in Q4 and 14% for the full year.

Business Driver

Johnson & Johnson

Coca-Cola

Main Growth Engine

Oncology and Immunology drugs

Zero Sugar platform

Q4 Revenue Growth (YoY)

+9.1%

+2.41%

Q4 Organic Revenue Growth

N/A (reported)

+5%

Key Headwind

STELARA biosimilar erosion (-47.7%)

$960M BODYARMOR impairment

Dividend Yield

2.11%

2.68%

Johnson & Johnson is reshaping itself aggressively: spinning off its DePuy Synthes orthopaedics unit, completing the acquisition of Intra-Cellular Therapies (maker of CAPLYTA) in April 2025, and submitting its OTTAVA robotic surgical system to the FDA.

The company has committed more than $55B in U.S. investment over four years across six priority areas: Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision. Its 2026 guidance targets ~$100.5B in revenue and $11.53 in adjusted EPS, signaling durable pipeline acceleration.

Coca-Cola is moving in the opposite direction, divesting bottling operations through refranchising toward an asset-light model. The pending sale of Coca-Cola Beverages Africa is expected to close in H2 2026.

The company is betting on brand power, pricing discipline, and extensions like fairlife, Simply Pop, and Minute Maid Zero Sugar. For 2026, it guides for 4%–5% organic revenue growth and 7%–8% comparable EPS growth against a $3 base.

Lens

Johnson & Johnson

Coca-Cola

Core Strategic Bet

Biotech pipeline and MedTech innovation

Brand premiumization and asset-light model

Portfolio Direction

Acquiring, expanding, spinning off non-core

Divesting, refranchising, simplifying

Key Vulnerability

STELARA biosimilar erosion and litigation charges

Currency headwinds and BODYARMOR impairment

YTD Price Performance

+18.06%

+10.49%

For Coca-Cola, the critical watch item is volume. Asia Pacific fell 7% in the quarter, with declines in Mexico, Thailand, and India signaling that pricing power has limits. The 2026 free cash flow target of $12.2B is nearly double the $5.296B generated in 2025, reflecting the expected benefit of asset-light conversion. The key question is whether that conversion flows through to shareholders or gets absorbed by currency swings and tax rate increases.

For Johnson & Johnson, the question is whether its pipeline can absorb the STELARA drag, which created roughly 1,040 basis points of negative impact on Innovative Medicine growth in the quarter. DARZALEX and TREMFYA are accelerating convincingly, but IMBRUVICA is declining and litigation charges hit $854M in Q4 alone.

Both stocks carry the 63-year dividend streak income investors prize. J&J's quarterly dividend of $1.30 per share and its 60.77% one-year price gain reflect a company re-rating higher on fundamental momentum.

Coca-Cola's 10.69% one-year gain is respectable for a consumer staple, but the revenue miss and BODYARMOR impairment indicate the brand portfolio still needs work. Coke's forward P/E sits at 23x versus J&J's 21x, meaning investors pay a slight premium for slower growth.

For defensive income with minimal volatility, Coke's 2.68% yield and brand durability reflect the profile of a low-volatility consumer staple. For investors tracking dividend growers with pipeline optionality, J&J's fundamentals present a stronger near-term growth case.

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