Coherent Shares Dip 2.19% Despite 16.4% Revenue Growth and 68th-Ranked $1.21 Billion Trading Volume Surge

Coherent (COHR) saw a 2.19% decline in its stock price on August 13, 2025, despite a 16.4% year-on-year revenue increase to $1.53 billion in Q2 CY2025. The company’s trading volume surged 158.57% to $1.21 billion, ranking 68th among active stocks. Non-GAAP earnings per share (EPS) of $1 exceeded analyst estimates by 8.7%, while adjusted operating income of $275 million matched expectations. However, Q3 revenue guidance of $1.53 billion fell 0.6% below forecasts, signaling caution in near-term demand.

The firm highlighted strong fiscal 2025 performance, with 23% revenue growth and 191% non-GAAP EPS expansion. CEO Jim Anderson emphasized long-term growth potential driven by AI datacenter demand and strategic portfolio optimization, including the pending sale of its Aerospace and Defense division. Over the past five years, Coherent has maintained a 19.5% compound annual revenue growth rate, though adjusted operating margins have declined by 1.5 percentage points since 2020, raising questions about cost management efficiency.

Short-term challenges persist. Free cash flow turned negative in Q2 at -$1 million, a sharp contrast to $62.41 million in the prior-year period. While the company’s 12-month revenue growth is projected at 10.6%, recent results suggest mixed investor sentiment. The stock’s post-earnings drop, despite outperforming the S&P 500 by 23% year-to-date, reflects lingering uncertainty over its ability to sustain momentum amid evolving market dynamics.

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