Why Did Coherent Stock Plunge 18.3% Despite Earnings Beat?

Generated by AI AgentAinvest Pre-Market Radar
Thursday, Aug 14, 2025 5:11 am ET1min read
Aime RobotAime Summary

- Coherent's stock plunged 18.3% pre-market despite Q4 earnings beat and 23% revenue growth.

- Declining silicon carbide demand and mixed investor reactions offset strong AI/telecom/laser transceiver growth.

- Record $5.81B annual revenue highlights resilience amid market challenges and innovation focus.

On August 14, 2025, Coherent's stock experienced a significant drop of 18.3% in pre-market trading, marking a notable decline in its share price.

Coherent's recent financial performance has been a mix of positive and negative factors. The company reported strong growth in AI, telecom, and laser transceivers during the last quarter. However, a decline in silicon carbide demand during fiscal 2025 posed a challenge to overall industrial revenue. Despite these headwinds, Coherent's Q4 earnings beat expectations, with revenue increasing by 23% to $5.81 billion, driven by robust sales in data center and communications sectors. The company also reported record annual revenue of $5.81 billion for fiscal 2025, reflecting a 23% year-over-year increase.

Investors' reactions to Coherent's earnings report were mixed. While the company's strong performance in key growth areas was encouraging, the drop in silicon carbide demand and the overall market sentiment contributed to the stock's decline. The earnings call highlighted the company's resilience in navigating market challenges and its focus on innovation and growth.

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