Coherent Corp. stock research
FY2025 Q2
Coherent (COHR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue grew compared to the prior quarter and the same quarter last year, while cost of revenue also increased but at a slower pace, resulting in higher gross profit and an improved gross margin. The gross margin strengthened sequentially and year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q2
Revenue grew compared to the prior quarter and the same quarter last year, while cost of revenue also increased but at a slower pace, resulting in higher gross profit and an improved gross margin. The gross margin strengthened sequentially and year-over-year.
- The primary driver of the gross margin improvement was the more favorable relationship between revenue growth and cost of revenue growth, with revenue increasing at a higher rate than cost of revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Relative to the same quarter one year earlier, all four metrics were higher, with gross margin showing a notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.5%
Gross profit
$509.4M
Revenue
$1.4B
Cost of revenue
$925.3M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+4.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $1.2B | $366.5M | $842.3M | 30.3% |
| Jun 30, 2024 | $1.3B | $431.9M | $882.4M | 32.9% |
| Sep 30, 2024 | $1.3B | $460.1M | $888.0M | 34.1% |
| Dec 31, 2024 | $1.4B | $509.4M | $925.3M | 35.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+1.4 pts
Year-over-year change
Dec 31, 2023
+4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement was the more favorable relationship between revenue growth and cost of revenue growth, with revenue increasing at a higher rate than cost of revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Relative to the same quarter one year earlier, all four metrics were higher, with gross margin showing a notable improvement.
Monitor the trend of cost of revenue relative to revenue to assess whether the gross margin improvement can be sustained.