NYSE$COHR

Coherent Corp · Q2 2025 earnings

Q2 2025 earnings · · After market close · Investor relations

Briefing

Coherent Corp. reported strong growth in revenue and significant improvements in gross margin and operating margin for the second quarter of fiscal 2025.

Coherent Corp. announced record revenue of $1.43 billion for the second quarter of fiscal 2025, marking a 27% year-over-year increase. The company also saw significant improvements in both GAAP and non-GAAP gross margins and EPS, driven by strong AI-related Data Center demand and growth in the Telecom business.

  • Record revenue of $1.43 billion, up 27% year-over-year.
  • GAAP gross margin increased by 452 bps year-over-year to 35.5%.
  • Non-GAAP gross margin increased by 363 bps year-over-year to 38.2%.
  • Diluted GAAP EPS improved by $0.82 year-over-year to $0.44, and non-GAAP EPS improved by $0.69 year-over-year to $0.95.

Headline financials

Total Revenue

$1.43B

Previous: $1.13B+26.8%
EPS (adj)

$0.95

Previous: -$0.38+350.0%
GAAP Gross Margin

35.5%

Previous: 31.0%+14.5%
Non-GAAP Gross Margin

38.2%

Previous: 34.6%+10.4%
GAAP Operating Margin

9.5%

Previous: 2.8%+239.3%
Non-GAAP Operating Margin

18.5%

Previous: 13.5%+37.0%
Capital Expenditures

-$198M

Previous: -$154M-28.6%
Net Income

$102M

Previous: -$27M+476.1%
Operating Income

$137M

Previous: $31.9M+329.7%
Gross Profit

$509M

Previous: $351M+45.3%
R&D Expense

$144M

Previous: $111B-99.9%

Revenue & EPS history

Coherent · Revenue · Quarterly

$1.43B

Q2 2025+26.8%vs Q2 2024
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

For the third quarter of fiscal 2025, Coherent Corp. expects revenue between $1.39 billion and $1.48 billion, non-GAAP gross margin between 37% and 39%, total non-GAAP operating expenses between $285 million and $305 million, and non-GAAP EPS between $0.75 and $0.95.

Tailwinds

  • Expected revenue of $1.39 billion to $1.48 billion for Q3 FY25.
  • Anticipated non-GAAP gross margin between 37% and 39% for Q3 FY25.
  • Expected non-GAAP EPS between $0.75 and $0.95 for Q3 FY25.
  • CHIPS Act funding to increase Indium Phosphide (InP) production capacity.
  • First customer order for new Optical Circuit Switch (OCS) based on unique digital liquid crystal technology.

Headwinds

  • No specific negative forward guidance points were explicitly stated in the provided text.
  • Potential for market conditions to impact future performance.
  • Risks associated with realizing benefits from R&D investments and commercialization of innovations.
  • Uncertainty regarding the Company's stock price performance relative to industrial technology leaders.
  • Potential for business and economic disruption from worldwide health epidemics or outbreaks.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

+1.1%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+2.4%

Avg return

30 days after

54%

36 / 67 earnings

Positive

+18.1%

Q1 2026

Best reaction

-30.7%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-7.8%+8.5%+9.3%
Q2 2026-0.8%+8.2%+11.7%
Q1 2026+18.1%+17.4%+35.0%
Q3 2025+1.5%+13.3%+14.5%
Q2 2025+11.5%-2.9%-26.1%
Q1 2025+17.0%+11.9%+18.9%
Q4 2024+14.4%+17.3%+16.4%
Q3 2024-2.1%-5.0%+18.1%
Q2 2024+0.6%+26.9%+31.7%
Q1 2024-0.1%+3.4%+18.7%
Q4 2023-30.7%-27.6%-29.1%
Q3 2023-8.6%-9.8%+22.0%
Q2 2023-2.4%-2.3%-12.2%
Q1 2023+17.2%+26.5%+18.0%
Q4 2022-2.2%-9.6%-33.0%
Q2 2022-0.8%-1.3%-6.5%
Q3 2022+6.1%+6.1%-0.6%
Q1 2022+5.3%+4.2%+1.2%
Q4 2021+0.6%+2.5%+5.0%
Q3 2021-1.6%-4.2%-5.4%
Q2 2021-4.6%-1.4%+8.7%
Q1 2021+5.9%-4.4%-24.0%
Q4 2020+3.5%+5.1%+21.7%
Q3 2020+1.3%+0.1%-24.2%
Q2 2020+1.0%+2.8%+5.0%
Q1 2020-0.6%-1.3%-17.1%
Q4 2019+3.0%+1.4%-17.7%
Q3 2019-2.5%-8.3%-8.2%
Q2 2019-4.2%+3.8%-17.2%
Q1 2019-0.8%+12.7%+27.0%
Q4 2018+2.8%-15.5%-22.3%
Q3 2018-6.2%-7.8%+19.5%
Q2 2018+13.1%+13.3%+15.4%
Q1 2018-5.5%-7.1%+3.2%
Q4 2017+4.4%+12.3%+3.8%
Q3 2017-5.0%-7.2%-5.9%
Q2 2017+6.9%+4.9%+8.2%
Q1 2017+5.9%+8.3%-2.3%
Q4 2016+0.0%+2.4%+7.2%
Q3 2016+0.3%+0.7%+5.7%
Q2 2016+0.5%
Q1 2016+6.7%
Q4 2015+1.1%
Q3 2015-0.3%
Q2 2015-7.3%
Q1 2015+2.7%
Q4 2014+1.3%
Q3 2014+1.0%
Q2 2014+1.7%
Q1 2014-5.5%
Q4 2013-6.2%
Q3 2013-6.2%
Q2 2013+4.4%
Q1 2013+2.4%
Q4 2012-1.7%
Q3 2012+6.0%
Q2 2012-0.1%
Q1 2012+2.2%
Q4 2009+7.6%
Q4 2011+7.6%
Q3 2010+4.2%
Q3 2011+4.2%
Q2 2010-0.8%
Q2 2011-0.8%
Q1 2010-2.4%
Q1 2011-2.4%
Q4 2010-2.4%

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