Coherent Corp. stock research
FY2026 Q2
Coherent (COHR) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter and more notably from a year ago, as cost of revenue rose while revenue grew at a faster rate.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter and more notably from a year ago, as cost of revenue rose while revenue grew at a faster rate.
- The strongest observable driver of the margin improvement is the difference between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue in both comparisons, leading to a higher gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, and cost of revenue was also higher, but gross margin was slightly improved. Relative to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, while gross margin showed a more notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.9%
Gross profit
$622.8M
Revenue
$1.7B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+1.4 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, 2025 | $1.5B | $527.7M | $970.2M | 35.2% |
| Jun 30, 2025 | $1.5B | $546.1M | $983.3M | 35.7% |
| Sep 30, 2025 | $1.6B | $579.2M | $1.0B | 36.6% |
| Dec 31, 2025 | $1.7B | $622.8M | $1.1B | 36.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.3 pts
Year-over-year change
Dec 31, 2024
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement is the difference between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue in both comparisons, leading to a higher gross margin.
Compared to the prior quarter, revenue and gross profit were higher, and cost of revenue was also higher, but gross margin was slightly improved. Relative to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, while gross margin showed a more notable improvement.
Monitor inventory levels, which increased from the end of the prior fiscal year, as a factor in future cost of revenue.