What Happened?
Shares of materials and photonics company Coherent (NYSE: COHR) fell 23.2% in the morning session after the company issued disappointing revenue guidance for its upcoming third quarter, which overshadowed its otherwise strong second-quarter financial results. For its second quarter of calendar year 2025, Coherent reported revenue of $1.53 billion and an adjusted earnings per share (EPS) of $1.00, beating Wall Street's expectations on both fronts. However, the positive results were undermined by the company's forecast for the third quarter. Coherent guided for third-quarter revenue of approximately $1.53 billion, which came in slightly below analysts' consensus estimate of $1.54 billion. This weaker-than-expected outlook signaled potential headwinds, leading investors to focus on future growth concerns rather than the solid quarterly performance, prompting a sell-off in the shares.
The shares closed the day at $91.65, down 19.7% from previous close.
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What Is The Market Telling Us
Coherent’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. But moves this big are rare even for Coherent and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 5.9% on the news that the company announced a new multiyear strategic supply agreement with Apple, expanding their long-standing partnership. The photonics company expanded its long-standing partnership to supply vertical-cavity surface-emitting lasers, or VCSELs, which powered key features like Face ID. The components were manufactured at Coherent's facility in Sherman, Texas, as part of Apple's commitment to American manufacturing. The news added to recent positive sentiment, as one analyst recently increased the stock's price target to $97, and other reports highlighted the company's favorable growth outlook.
Coherent is down 9.1% since the beginning of the year, and at $91.41 per share, it is trading 21.6% below its 52-week high of $116.56 from August 2025. Investors who bought $1,000 worth of Coherent’s shares 5 years ago would now be looking at an investment worth $1,963.
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