Stryker (SYK) Reports Q2 Earnings: What Key Metrics Have to Say
The reported revenue represents a surprise of +1.09% over the Zacks Consensus Estimate of $5.96 billion. With the consensus EPS estimate being $3.06, the EPS surprise was +2.29%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Stryker performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales by Geography- Orthopaedics- Hips- United States: $283 million versus $279.15 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.
Net Sales by Geography- Orthopaedics- Knees- United States: $460 million compared to the $462.74 million average estimate based on three analysts. The reported number represents a change of +6.2% year over year.
Net Sales by Geography- Orthopaedics- Hips- International: $183 million versus the three-analyst average estimate of $181.41 million. The reported number represents a year-over-year change of +9.6%.
Net Sales by Geography- Orthopaedics- International: $675 million compared to the $739.65 million average estimate based on three analysts. The reported number represents a change of +0.2% year over year.
Net Sales by Geography- Orthopaedics: $2.25 billion versus the six-analyst average estimate of $2.29 billion. The reported number represents a year-over-year change of -2.3%.
Net Sales by Business- MedSurg and Neurotechnology: $3.77 billion compared to the $3.68 billion average estimate based on six analysts. The reported number represents a change of +21% year over year.
Net Sales by Geography- Orthopaedics- Knees: $640 million versus $641.42 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.3% change.
Net Sales by Business- MedSurg and Neurotechnology- Medical: $990 million versus the four-analyst average estimate of $985.69 million. The reported number represents a year-over-year change of +9%.
Net Sales by Business- MedSurg and Neurotechnology- Endoscopy: $899 million compared to the $835.42 million average estimate based on four analysts. The reported number represents a change of +17.1% year over year.
Net Sales by Geography- Orthopaedics- Hips: $466 million versus $457.77 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.9% change.
Net Sales by Geography- Orthopaedics- Other: $183 million versus the four-analyst average estimate of $194.65 million. The reported number represents a year-over-year change of +34.6%.
Net Sales by Geography- Orthopaedics- Trauma and Extremities: $957 million compared to the $916.05 million average estimate based on four analysts. The reported number represents a change of +15% year over year.
View all Key Company Metrics for Stryker here>>>
Shares of Stryker have returned -0.7% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Coherent Corp. Reports Fourth Quarter and Full Year Fiscal 2025 Results
FY25 REVENUE OF $5.81B, INCREASED 23% Y/Y FY25 GAAP GROSS MARGIN OF 35.2%, INCREASED 424 bps Y/Y; FY25 NON-GAAP GROSS MARGIN OF 37.9%, INCREASED 358 bps Y/Y FY25 GAAP LOSS OF $0.52, IMPROVED $1.32 Y/Y; FY25 NON-GAAP EPS OF $3.53, IMPROVED $2.32 Y/Y SAXONBURG, Pa., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR) ('Coherent,' 'We,' or the 'Company'), a global leader in photonics, announced financial results today for the fiscal fourth quarter and full year fiscal 2025 ended June 30, 2025. Revenue for the fourth quarter of fiscal 2025 was a record $1.53 billion, with GAAP gross margin of 35.7% and GAAP net loss of $0.83 per diluted share. On a non-GAAP basis, gross margin was 38.1% with net income per diluted share of $1.00. Revenue for the full year fiscal 2025 was a record $5.81 billion, with GAAP gross margin of 35.2% and GAAP net loss of $0.52 per diluted share. On a non-GAAP basis, gross margin was 37.9% with net income per diluted share of $3.53. Jim Anderson, CEO, said, 'We delivered a strong fiscal 2025 with revenue growth of 23% and non-GAAP EPS expansion of 191%. We believe we are well positioned to continue to drive strong revenue and profit growth over the long-term given our exposure to key growth drivers such as AI datacenters. We also continue to optimize and focus our portfolio with the recently announced agreement to sell our Aerospace and Defense business. As we enter a new fiscal year, we are excited about the growth opportunities ahead of us.' Sherri Luther, CFO, said, 'In fiscal 2025, in addition to strong revenue growth, we achieved gross margin expansion of 358 basis points on a year-over-year basis. Revenue growth and margin expansion drove improvement in our operating cash flow, which enabled us to repay approximately $437 million of our outstanding debt for the full fiscal year.' Selected Fourth Quarter and Full Year 2025 Financial Results and Comparisons (in millions, except percentages and per share data) Table 1 GAAP Financial Results (unaudited) Q4 FY25 Q3 FY25 Q4 FY24 Q/Q Y/Y FY 2025 FY 2024 FY/FY Revenues $ 1,529 $ 1,498 $ 1,314 2.1 % 16.4 % $ 5,810 $ 4,708 23.4 % Gross Margin % 35.7 % 35.2 % 32.9 % 48 bps 284 bps 35.2 % 30.9 % 424 bps IR&D Expense % 10.2 % 10.1 % 9.6 % 12 bps 54 bps 10.0 % 10.2 % (16)bps SG&A Expense % 16.0 % 15.4 % 17.3 % 60 bps (130)bps 15.9 % 18.1 % (219)bps Operating Expenses $ 540 $ 456 $ 369 18.4 % 46.4 % $ 1,753 $ 1,360 28.9 % Operating Income(1) $ 6 $ 72 $ 63 (91.5)% (90.3)% $ 290 $ 96 201.7 % Operating Margin 0.4 % 4.8 % 4.8 % (439) bps (441)bps 5.0 % 2.0 % 295 bps Net Earnings (Loss) Attributable to Coherent Corp. $ (96 ) $ 16 $ (48 ) (708.6)% 97.4 % $ 49 $ (156 ) (131.6)% Diluted Loss Per Share $ (0.83 ) $ (0.11 ) $ (0.52 ) $ (0.72 ) $ (0.30 ) $ (0.52 ) $ (1.84 ) $ 1.32 (1) Operating Income is defined as earnings (loss) before income taxes, interest expense, and other expense or income, net. Selected Fourth Quarter and Full Year 2025 Financial Results and Comparisons (in millions, except percentages and per share data) Table 1, continued Non-GAAP Financial Results (unaudited)(1)(2) Q4 FY25 Q3 FY25 Q4 FY24 Q/Q Y/Y FY 2025 FY 2024 FY/FY Revenues $ 1,529 $ 1,498 $ 1,314 2.1 % 16.4 % $ 5,810 $ 4,708 23.4 % Gross Margin % 38.1 % 38.5 % 35.9 % (43)bps 220 bps 37.9 % 34.3 % 358 bps IR&D Expense % 9.8 % 9.4 % 9.1 % 36 bps 64 bps 9.5 % 9.6 % (5)bps SG&A Expense % 10.3 % 10.4 % 11.3 % (15)bps (102)bps 10.5 % 11.6 % (109)bps Operating Expenses $ 307 $ 297 $ 269 3.2 % 14.2 % $ 1,165 $ 998 16.8 % Operating Income $ 275 $ 279 $ 203 (1.5)% 35.8 % $ 1,037 $ 618 67.8 % Operating Margin 18.0 % 18.6 % 15.4 % (66)bps 257 bps 17.8 % 13.1 % 472 bps Net Earnings Attributable to Coherent Corp. $ 192 $ 177 $ 111 8.5 % 73.6 % $ 693 $ 311 122.9 % Diluted Earnings Per Share $ 1.00 $ 0.91 $ 0.51 $ 0.09 $ 0.49 $ 3.53 $ 1.21 $ 2.32 (1) During the second fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company's financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation. (2) The Company has disclosed financial measurements in this earnings release that present financial information considered to be non-GAAP financial measures. These measurements are not a substitute for GAAP measurements, although the Company's management uses these measurements as an aid in monitoring the Company's on-going financial performance. The non-GAAP net earnings attributable to Coherent Corp., the non-GAAP diluted earnings per share, the non-GAAP operating income, the non-GAAP gross margin, the non-GAAP research and development, the non-GAAP selling, general and administration, the non-GAAP operating expenses, the non-GAAP interest and other (income) expense, and the non-GAAP income tax, measure earnings and operating income (loss), respectively, excluding non-recurring or unusual items that are considered by management to be outside the Company's standard operation and excluding certain non-cash items. There are limitations associated with the use of non-GAAP financial measures, including that such measures may not be entirely comparable to similarly titled measures used by other companies, due to potential differences among calculation methodologies. Thus, there can be no assurance whether (i) items excluded from the non-GAAP financial measures will occur in the future or (ii) there will be cash costs associated with items excluded from the non-GAAP financial measures. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by providing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures. Investors should consider adjusted measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP. All non-GAAP amounts exclude certain adjustments for share-based compensation, acquired intangible amortization expense, restructuring charges (recoveries), impairment of assets held-for-sale, integration and site consolidation expenses, integration transaction expenses, and various one-time adjustments. See Table 6 for the Reconciliation of GAAP measures to non-GAAP measures. Product Highlights – Fourth Quarter Fiscal 2025 First Revenue from 1.6T Datacom Transceivers. Commenced revenue shipments of our 1.6T transceiver products, enabling high-performance AI datacenter applications. First Revenue from Optical Circuit Switch (OCS). Achieved initial revenue for our differentiated liquid-crystal OCS platform, which we estimate will expand our addressable data center market opportunity by over $2 billion by 2030. Advanced Cooling for AI Datacenters. Introduced a new diamond silicon carbide composite material with enhanced thermal conductivity for cooling xPUs in AI datacenters. Industry-first 600W Excimer Laser for Energy Applications. Launched a new excimer laser platform optimized for high-temperature superconductor tape production for emerging energy technologies including Outlook – First Quarter Fiscal 2026(1) We expect the sale of our Aerospace and Defense business to close this quarter. As a result, the following outlook excludes approximately $20 million in Aerospace and Defense revenue that we expect will occur after we close the sale. Revenue for the first quarter of fiscal 2026 is expected to be between $1.46 billion and $1.60 billion. Gross margin for the first quarter of fiscal 2026 is expected to be between 37.5% and 39.5% on a non-GAAP basis. Total operating expenses for the first quarter of fiscal 2026 are expected to be between $290 million and $310 million on a non-GAAP basis. Tax rate for the first quarter of fiscal 2026 is expected to be between 18% and 22% on a non-GAAP basis. EPS for the first quarter of fiscal 2026 is expected to be between $0.93 and $1.13 on a non-GAAP basis. ___________________(1) The Company has not provided a quantitative reconciliation of forward-looking non-GAAP gross margin percentage, non-GAAP operating expenses, non-GAAP tax rate and non-GAAP earnings per share, because we cannot, without unreasonable efforts, forecast certain items required to develop comparable GAAP measures. These items include, without limitation, restructuring charges, integration, site consolidation and other expenses, foreign exchange gains (losses), and share based compensation expense. The variability of these items could significantly impact our future GAAP financial results and we believe that the inclusion of any such reconciliations would imply a degree or precision that could be confusing or misleading to investors. Investor Conference Call / Webcast Details Coherent will review the Company's financial results for its fourth quarter of fiscal 2025 and business outlook on Wednesday, August 13, at 5:00 p.m. ET. A live webcast and replay of the conference call will be available on the Investor Relations section of the Company's website at The Company's financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release. Additional Information and Where to Find It In connection with the conference call described above, the Company intends to file an investor presentation as an exhibit to a Current Report on Form 8-K filed with the Securities and Exchange Commission ('SEC') and to post the investor presentation on the Company's website at after market close on August 13, 2025. We also may, from time to time, post other important information for investors on our website at We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should review the Investor Relations page of our website referenced above, in addition to following the Company's press releases, SEC filings, and public conference calls, presentations, and webcasts. Investors and security holders are able to obtain free copies of these documents through the Company's website referenced above. Copies of the documents filed by the Company with the SEC may be obtained free of charge on the Company's website at The information contained on, or that may be accessed through, the Company's website is not incorporated by reference into, and is not part of, this release. Forward-Looking Statements This press release contains statements, estimates, and projections that constitute 'forward-looking statements' as defined under U.S. federal securities laws – including our estimates and projections for our business outlook for the first quarter of fiscal 2026, each of which is made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and relate to the Company's performance on a going-forward basis. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause the Company's actual results to differ materially from its historical experience and our present expectations or projections. The Company believes that all forward-looking statements made by it herein have a reasonable basis, but there can be no assurance that management's expectations, beliefs, or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and global economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements herein include but are not limited to: (i) the failure of any one or more of the assumptions stated herein to prove to be correct; (ii) the terms of the Company's indebtedness and ability to service such debt in connection with its acquisition of Coherent, Inc., (iii) risks relating to future integration and/or restructuring actions; (iv) fluctuations in purchasing patterns of customers and end users; (v) the ability of the Company to retain and hire key employees; (vi) changes in demand in the Company's end markets along with the Company's ability to respond to such market changes; (vii) the timely release of new products and acceptance of such new products by the market; (viii) the introduction of new products by competitors and other competitive responses; (ix) the Company's ability to assimilate other recently acquired businesses, and realize synergies, cost savings, and opportunities for growth in connection therewith, together with the risks, costs, and uncertainties associated with such acquisitions; (x) the risks to realizing the benefits of investments in R&D and commercialization of innovations; (xi) the risks that the Company's stock price will not trade in line with industrial technology leaders; (xii) the impact of trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries; and/or (xiii) the risks relating to forward-looking statements and other 'Risk Factors' identified from time to time in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and our subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise. About Coherent Coherent is the global photonics leader. We harness photons to drive innovation. Industry leaders in the datacenter, communications, and industrial markets rely on Coherent's world-leading technology to fuel their own innovation and growth. Founded in 1971 and operating in more than 20 countries, Coherent brings the industry's broadest, deepest technology stack; unmatched supply chain resilience; and global scale to help its customers solve their toughest technology challenges. For more information, please visit us at Contact: Paul SilversteinSenior VP, Investor 2 Coherent Corp. and Subsidiaries Condensed Consolidated Statements of Earnings (Loss)* THREE MONTHS ENDED June 30, March 31, June 30, $ Millions, except per share amounts (unaudited) 2025 2025 2024 Revenues $ 1,529.4 $ 1,497.9 $ 1,314.4 Costs, Expenses & Other Expense (Income) Cost of goods sold 983.3 970.2 882.4 Research and development 155.7 150.7 126.7 Selling, general and administrative 245.4 231.4 228.0 Restructuring charges 53.9 73.8 14.1 Impairment of assets held-for-sale 85.0 — — Interest expense 55.0 57.3 67.8 Other expense (income), net 14.4 4.6 (14.5 ) Total Costs, Expenses, & Other Expense 1,592.9 1,488.0 1,304.5 Earnings (Loss) Before Income Taxes (63.4 ) 9.9 9.9 Income Taxes 34.7 8.1 56.9 Net Earnings (Loss) (98.1 ) 1.8 (47.0 ) Net Earnings (Loss) Attributable to Noncontrolling Interests (2.5 ) (13.9 ) 1.4 Net Earnings (Loss) Attributable to Coherent Corp. $ (95.6 ) $ 15.7 $ (48.4 ) Less: Dividends on Preferred Stock 33.1 32.7 31.4 Net Loss Available to the Common Shareholders $ (128.8 ) $ (17.0 ) $ (79.9 ) Basic Loss Per Share $ (0.83 ) $ (0.11 ) $ (0.52 ) Diluted Loss Per Share $ (0.83 ) $ (0.11 ) $ (0.52 ) Average Shares Outstanding – Basic 155.5 155.2 152.6 Average Shares Outstanding – Diluted 155.5 155.2 152.6 *Amounts may not recalculate due to rounding. Table 2 Coherent Corp. and Subsidiaries Condensed Consolidated Statements of Earnings (Loss)* (Continued) YEAR ENDED June 30, June 30, $ Millions, except per share amounts (unaudited) 2025 2024 Revenues $ 5,810.1 $ 4,707.7 Costs, Expenses & Other Expense (Income) Cost of goods sold 3,766.8 3,251.7 Research and development 581.9 478.8 Selling, general and administrative 926.5 854.0 Restructuring charges 160.1 27.1 Impairment of assets held-for-sale 85.0 — Interest expense 243.3 288.5 Other expense (income), net (47.6 ) (44.7 ) Total Costs, Expenses, & Other Expense 5,715.9 4,855.3 Earnings (Loss) Before Income Taxes 94.2 (147.6 ) Income Taxes 64.1 11.1 Net Earnings (Loss) 30.1 (158.8 ) Net Loss Attributable to Noncontrolling Interests (19.3 ) (2.6 ) Net Earnings (Loss) Attributable to Coherent Corp. $ 49.4 $ (156.2 ) Less: Dividends on Preferred Stock 129.9 123.4 Net Loss Available to the Common Shareholders $ (80.6 ) $ (279.5 ) Basic Loss Per Share $ (0.52 ) $ (1.84 ) Diluted Loss Per Share $ (0.52 ) $ (1.84 ) Average Shares Outstanding - Basic 154.8 151.6 Average Shares Outstanding - Diluted 154.8 151.6 *Amounts may not recalculate due to rounding. Table 3 Coherent Corp. and Subsidiaries Condensed Consolidated Balance Sheets* June 30, June 30, $ Millions (unaudited) 2025 2024 Assets Current Assets Cash and cash equivalents $ 909.2 $ 926.0 Restricted cash, current 8.9 174.0 Accounts receivable 964.1 848.5 Inventories 1,437.6 1,286.4 Prepaid and refundable income taxes 55.8 26.9 Prepaid and other current assets 551.6 398.2 Total Current Assets 3,927.2 3,660.1 Property, plant & equipment, net 1,877.5 1,817.3 Goodwill 4,471.1 4,464.3 Other intangible assets, net 3,204.7 3,503.2 Deferred income taxes 53.4 41.0 Restricted cash, non-current 714.8 689.6 Other assets 662.2 313.1 Total Assets $ 14,910.9 $ 14,488.6 Liabilities, Mezzanine Equity and Equity Current Liabilities Current portion of long-term debt $ 188.3 $ 73.8 Accounts payable 847.0 631.5 Operating lease current liabilities 41.6 40.6 Accruals and other current liabilities 718.0 597.9 Total Current Liabilities 1,794.8 1,343.8 Long-term debt 3,498.6 4,026.4 Deferred income taxes 711.7 784.4 Operating lease liabilities 165.2 162.4 Other liabilities 259.3 225.4 Total Liabilities 6,429.7 6,542.4 Total Mezzanine Equity 2,483.3 2,364.8 Total Coherent Corp. Shareholders' Equity 5,644.5 5,210.1 Noncontrolling interests 353.5 371.4 Total Equity 5,998.0 5,581.5 Total Liabilities, Mezzanine Equity and Equity $ 14,910.9 $ 14,488.6 *Amounts may not recalculate due to rounding. Table 4 Coherent Corp. and Subsidiaries Condensed Consolidated Statements of Cash Flows* YEAR ENDED June 30, June 30, $ Millions (unaudited) 2025 2024 Cash Flows from Operating Activities Net cash provided by operating activities $ 633.6 $ 545.7 Cash Flows from Investing Activities Additions to property, plant & equipment (440.8 ) (346.8 ) Proceeds from sale of business 27.0 — Other investing activities (0.4 ) (3.9 ) Net cash used in investing activities (414.2 ) (350.7 ) Cash Flows from Financing Activities Contributions from noncontrolling interest holders — 1,000.0 Proceeds from borrowings of revolving credit facilities 53.7 19.0 Payments on existing debt (437.0 ) (228.8 ) Payments on borrowings under revolving credit facilities (51.7 ) (19.0 ) Equity issuance costs — (31.8 ) Proceeds from exercises of stock options and purchases under employee stock purchase plan 49.6 42.3 Payments in satisfaction of employees' minimum tax obligations (54.0 ) (22.3 ) Payment of dividends (11.4 ) — Other financing activities (0.9 ) (1.1 ) Net cash provided by (used in) financing activities (451.7 ) 758.3 Effect of exchange rate changes on cash and cash equivalents 75.6 (1.2 ) Net increase (decrease) in cash and cash equivalents (156.8 ) 952.1 Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 1,789.7 837.6 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 1,632.9 $ 1,789.7 *Amounts may not recalculate due to rounding. Table 5 Segment Revenues* THREE MONTHS ENDED YEAR ENDED $ Millions (unaudited) June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Revenues: Networking $ 945.2 $ 897.3 $ 679.8 $ 3,421.3 $ 2,295.7 Materials 236.2 236.7 279.3 953.8 1,016.6 Lasers 348.0 363.9 355.3 1,435.0 1,395.4 Consolidated $ 1,529.4 $ 1,497.9 $ 1,314.4 $ 5,810.1 $ 4,707.7 *Amounts may not recalculate due to rounding. Table 6 Reconciliation of GAAP Measures to Non-GAAP Measures* THREE MONTHS ENDED YEAR ENDED June 30, March 31, June 30, June 30, June 30, $ Millions, except per share amounts (unaudited) 2025 2025 2024(1) 2025(1) 2024(1) Gross margin on GAAP basis $ 546.1 $ 527.7 $ 432.0 $ 2,043.3 $ 1,456.0 Share-based compensation 5.8 5.4 5.0 22.5 22.9 Amortization of acquired intangibles(2) 30.6 43.7 30.4 135.1 122.0 Integration, site consolidation and other(3) (0.4 ) — 4.0 1.3 14.8 Gross margin on non-GAAP basis $ 582.2 $ 576.7 $ 471.4 $ 2,202.3 $ 1,615.7 Research and development on GAAP basis $ 155.7 $ 150.7 $ 126.7 $ 581.9 $ 478.8 Share-based compensation (5.9 ) (5.3 ) (5.2 ) (22.2 ) (23.1 ) Amortization of acquired intangibles(2) (0.2 ) (3.8 ) (0.6 ) (5.3 ) (2.6 ) Integration, site consolidation and other(3) 0.1 (0.4 ) (0.7 ) (0.2 ) (1.7 ) Research and development on non-GAAP basis $ 149.7 $ 141.2 $ 120.2 $ 554.3 $ 451.4 Selling, general and administrative on GAAP basis $ 245.4 $ 231.4 $ 228.0 $ 926.5 $ 854.0 Share-based compensation (32.6 ) (29.5 ) (18.5 ) (116.3 ) (80.9 ) Amortization of acquired intangibles(2) (41.2 ) (39.6 ) (40.7 ) (162.4 ) (163.6 ) Integration, site consolidation and other(3) (14.4 ) (6.0 ) (20.2 ) (36.7 ) (63.3 ) Selling, general and administrative on non-GAAP basis $ 157.3 $ 156.3 $ 148.6 $ 611.0 $ 546.3 Restructuring charges on GAAP basis $ 53.9 $ 73.8 $ 14.1 $ 160.1 $ 27.1 Restructuring charges(4) (53.9 ) (73.8 ) (14.1 ) (160.1 ) (27.1 ) Restructuring charges on non-GAAP basis $ — $ — $ — $ — $ — Impairment of assets held-for-sale on GAAP basis $ 85.0 $ — $ — $ 85.0 $ — Impairment of assets held-for-sale(5) (85.0 ) — — (85.0 ) — Impairment of assets held-for-sale on non-GAAP basis $ — $ — $ — $ — $ — Operating income on GAAP basis $ 6.1 $ 71.8 $ 63.2 $ 289.9 $ 96.1 Share-based compensation 44.3 40.2 28.7 161.0 126.9 Amortization of acquired intangibles(2) 72.0 87.2 71.7 302.8 288.2 Restructuring charges(4) 53.9 73.8 14.1 160.1 27.1 Impairment of assets held-for-sale(5) 85.0 — — 85.0 — Integration, site consolidation and other(3) 13.8 6.4 24.9 38.2 79.8 Operating income on non-GAAP basis $ 275.1 $ 279.3 $ 202.7 $ 1,036.9 $ 618.0 Table 6 Reconciliation of GAAP Measures to Non-GAAP Measures* (Continued) THREE MONTHS ENDED YEAR ENDED June 30, March 31, June 30, June 30, June 30, $ Millions, except per share amounts (unaudited) 2025 2025 2024(1) 2025(1) 2024(1) Interest and other (income) expense, net on GAAP basis $ 69.5 $ 61.9 $ 53.3 $ 195.7 $ 243.8 Foreign currency exchange losses, net (37.0 ) (16.7 ) (0.9 ) (28.4 ) (9.5 ) Transaction fees and financing(6) — — (2.0 ) — (2.0 ) Interest and other (income) expense, net on non-GAAP basis $ 32.5 $ 45.1 $ 50.4 $ 167.3 $ 232.3 Income taxes on GAAP basis $ 34.7 $ 8.1 $ 56.9 $ 64.1 $ 11.1 Tax impact of non-GAAP measures 18.8 47.6 29.1 114.0 112.6 Tax windfall from share-based compensation(7) 1.3 4.2 — 20.5 — Tax impact of valuation allowance for deferred tax assets(8) (2.0 ) (1.4 ) (46.0 ) (14.6 ) (46.0 ) Income taxes on non-GAAP basis $ 52.8 $ 58.5 $ 40.0 $ 184.0 $ 77.7 Net earnings (loss) attributable to Coherent Corp. on GAAP basis $ (95.6 ) $ 15.7 $ (48.4 ) $ 49.4 $ (156.2 ) Share-based compensation 44.3 40.2 28.7 161.0 126.9 Amortization of acquired intangibles(2) 72.0 87.2 71.7 302.8 288.2 Foreign currency exchange losses 37.0 16.7 0.9 28.4 9.5 Restructuring charges(4) 53.9 73.8 14.1 160.1 27.1 Impairment of assets held-for-sale(5) 85.0 — — 85.0 — Integration, site consolidation and other(3) 13.8 6.4 24.9 38.2 79.8 Non-controlling interest impact of non-GAAP items — (12.3 ) — (12.3 ) — Transaction fees and financing(6) — — 2.0 — 2.0 Tax windfall from share-based compensation(7) (1.3 ) (4.2 ) — (20.5 ) — Tax impact of valuation allowance for deferred tax assets(8) 2.0 1.4 46.0 14.6 46.0 Tax impact of non-GAAP measures (18.8 ) (47.6 ) (29.1 ) (114.0 ) (112.6 ) Net earnings attributable to Coherent Corp. on non-GAAP basis $ 192.3 $ 177.2 $ 110.8 $ 692.6 $ 310.7 Per share data: Net loss on GAAP basis Basic Loss Per Share $ (0.83 ) $ (0.11 ) $ (0.52 ) $ (0.52 ) $ (1.84 ) Diluted Loss Per Share $ (0.83 ) $ (0.11 ) $ (0.52 ) $ (0.52 ) $ (1.84 ) Net earnings on non-GAAP basis Basic Earnings Per Share $ 1.02 $ 0.93 $ 0.52 $ 3.64 $ 1.24 Diluted Earnings Per Share $ 1.00 $ 0.91 $ 0.51 $ 3.53 $ 1.21 *Amounts may not recalculate due to rounding. (1) During the second fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company's financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation.(2) Amortization of acquired intangibles includes the write-off of certain impaired intangible assets in the third quarter of fiscal 2025.(3) Integration, site consolidation and other costs include retention and severance payments and other integration costs related to the acquisition of Coherent, Inc. Refer to table 7 for a more detailed description of these costs on a consolidated basis.(4) Restructuring charges include non-cash impairment charges for production assets and improvements on leased facilities, loss on sale of a facility, severance, contract termination costs and other costs related to the restructuring plans.(5) Impairment of assets held-for-sale relate to several entities classified as held for sale at June 30, 2025.(6)Transaction fees and financing includes debt extinguishment costs and various fees related to closing the Coherent transaction. (6) Windfall tax benefits were recorded on the vesting of share-based compensation.(8) Valuation allowance adjustment was related to an increase (decrease) in valuation allowance related to certain deferred tax assets resulting from the Company's cumulative GAAP net loss that is not recognized for non-GAAP purposes given the historical non-GAAP net earnings. Table 7 Components of Integration, Site Consolidation and Other Costs Excluded from Non-GAAP Operating Income* THREE MONTHS ENDED YEAR ENDED June 30, March 31, June 30, June 30, June 30, $ Millions (unaudited) 2025 2025 2024(1) 2025(1) 2024(1) Integration, site consolidations and other costs Consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure $ 14.3 $ 5.8 $ 6.5 $ 35.3 $ 40.8 Charges for products that are end-of-life, including production equipment to produce those products — — 1.0 — 3.2 Employee severance and retention costs for site consolidations as part of our Synergy and Site Consolidation Plan or other actions (0.5 ) 0.6 4.2 2.3 14.1 Severance costs related to the retirement of our former CEO/CFO/President — — 13.2 0.6 18.7 Direct damages from substation power failure/fire at manufacturing sites — — — — 3.0 Integration, site consolidations and other costs $ 13.8 $ 6.4 $ 24.9 $ 38.2 $ 79.8 *Amounts may not recalculate due to rounding. (1) During the second fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company's financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation. Table 8 GAAP Earnings (Loss) Per Share Calculation* THREE MONTHS ENDED YEAR ENDED $ Millions, except per share amounts (unaudited June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Numerator Net earnings (loss) attributable to Coherent Corp. $ (95.6 ) $ 15.7 $ (48.4 ) $ 49.4 $ (156.2 ) Deduct Series B redeemable preferred dividends (33.1 ) (32.7 ) (31.4 ) (129.9 ) (123.4 ) Basic loss available to common shareholders $ (128.8 ) $ (17.0 ) $ (79.9 ) $ (80.6 ) $ (279.5 ) Diluted loss available to common shareholders $ (128.8 ) $ (17.0 ) $ (79.9 ) $ (80.6 ) $ (279.5 ) Denominator Diluted weighted average common shares 155.5 155.2 152.6 154.8 151.6 Basic loss per common share $ (0.83 ) $ (0.11 ) $ (0.52 ) $ (0.52 ) $ (1.84 ) Diluted loss per common share $ (0.83 ) $ (0.11 ) $ (0.52 ) $ (0.52 ) $ (1.84 ) *Amounts may not recalculate due to rounding. Table 9 Non-GAAP Earnings Per Share Calculation* THREE MONTHS ENDED YEAR ENDED $ Millions, except per share amounts (unaudited) June 30, March 31, June 30, June 30, June 30, 2025 2025 2024(1) 2025(1) 2024(1) Numerator Net earnings attributable to Coherent Corp. on non-GAAP basis $ 192.3 $ 177.2 $ 110.8 $ 692.6 $ 310.7 Deduct Series B redeemable preferred dividends (33.1 ) (32.7 ) (31.4 ) (129.9 ) (123.4 ) Basic earnings available to common shareholders $ 159.1 $ 144.6 $ 79.4 $ 562.6 $ 187.3 Diluted earnings available to common shareholders $ 159.1 $ 144.6 $ 79.4 $ 562.6 $ 187.3 Denominator Weighted average shares 155.5 155.2 152.6 154.8 151.6 Effect of dilutive securities: Common stock equivalents 3.7 4.0 3.8 4.5 2.6 Diluted weighted average common shares 159.2 159.1 156.3 159.2 154.3 Basic earnings per common share on non-GAAP basis $ 1.02 $ 0.93 $ 0.52 $ 3.64 $ 1.24 Diluted earnings per common share on non-GAAP basis $ 1.00 $ 0.91 $ 0.51 $ 3.53 $ 1.21 *Amounts may not recalculate due to rounding. (1) During the second fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company's financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Stock market today: Dow jumps 450 points as S&P 500, Nasdaq log back-to-back records on surging Fed rate cut bets
US stocks climbed on Wednesday with the benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) notching back-to-back record highs as investors bet almost unanimously on a Federal Reserve rate cut at its next meeting following the latest inflation data. The Dow Jones Industrial Average (^DJI) led the major gauges, closing up above 1%, or more than 450 points. The benchmark S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) pared earlier gains but still rose around 0.3% and 0.1%, respectively. The Dow is once again within striking distance of an all-time high last reached in December. The gains followed a big upswing in stocks on Tuesday after the release of the July Consumer Price Index (CPI) report, with the S&P 500 and Nasdaq both touching new records. Though the data showed inflation had ticked up, it increased less than expected. Treasury Secretary Scott Bessent also on Wednesday called on the Fed to lower rates by 150 to 175 basis points. "I think we could go into a series of rate cuts here, starting with a 50 basis point rate cut in September," he told Bloomberg. The result has been a surge in bets that the Fed would cut interest rates at its September policy meeting, especially in light of recent warning signs the labor market is weakening. By Wednesday afternoon, traders had fully priced in a September cut, according to the CME Group, with bets also rising on a potential "jumbo" cut of 50 basis points. Later this week, investors will get two more snapshots on the state of the economy with the release of the Producer Price Index on Thursday and retail sales data on Friday. In corporate news, Circle (CRCL) fell on Wednesday after the company announced it would sell 10 million shares on the heels of its first earnings report since its explosive public debut. Cava (CAVA) shares also dove after the company issued its first annual sales growth target cut. CoreWeave (CRWV) stock plummeted as the company's operating income guidance fell below expectations and as its cost of debt mounts, despite beating revenue estimates on strong demand for AI. S&P 500, Nasdaq secure more records Wall Street rallied Wednesday, with the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) locking in a second straight day of record closes as traders all but priced in a Federal Reserve rate cut at its next meeting after fresh inflation figures. The Dow Jones Industrial Average (^DJI) led the charge, climbing over 450 points, or above 1%, to close back near record territory. And whhile the S&P 500 and Nasdaq pared earlier gains, they still ended the day up about 0.3% and 0.1%, respectively, extending their record-breaking run. Paramount Skydance surges as much as 60% after UFC deal Paramount Skydance Corporation PSKY (PSKY) surged as much as 60% on Wednesday as traders piled into the newly merged media powerhouse — less than a week after the two companies officially tied the knot. In the few days since its merger, CEO David Ellison has wasted no time capturing investor attention, most notably by striking a seven-year, $7.7 billion deal to make Paramount Skydance the exclusive US home for all UFC events. The deal, announced on Monday, marks a major payday for TKO Group Holdings (TKO), the UFC's parent company, far surpassing its previous agreement with Disney's (DIS) ESPN, which was worth roughly $550 million annually. "With lower leverage following the Paramount/Skydance transactions and Ellison-backed $1.5B primary issuance, PSKY is immediately making use of the improved balance sheet," Ric Prentiss, analyst at Raymond James, wrote in reaction to the report. "This deal is a significant move in and of itself for Paramount+, as the consistent live event schedule should help the service drive greater scale of subscribers and less churn, albeit coming with very substantial annual cost," the analyst added. Apple shares jump on report of AI comeback plans Apple (AAPL) shares spiked to session highs on Wednesday after Bloomberg reported the company is planning its artificial intelligence comeback, anchored by an ambitious lineup of new products that include household robots, a lifelike Siri, a smart speaker with a display, and home-security cameras. The stock later pared gains, trading about 1% higher in the late afternoon. Apple's AI ambitions have stumbled this year, with shares down about 7% even as most of its "Magnificent Seven" peers, aside from Tesla (TSLA), have surged. Analysts cite the company's lack of a clear AI strategy as the biggest disappointment. Ahead of Wednesday's report, Apple CEO Tim Cook hinted at the upcoming devices in an all-hands meeting earlier this month, telling employees, "The product pipeline — which I can't talk about — it's amazing, guys. It's amazing,' he said. 'Some of it you'll see soon. Some of it will come later. But there's a lot to see." Oil prices fall: Here's what's behind the declines Oil prices slipped on Wednesday as investors perceived the risk of an industry prices slipped on Wednesday as investors perceived the risk of an industry glut. Read more here. Ethereum surges to near record as investors bet on 'biggest macro trade' of the next decade Yahoo Finance's Ines Ferré reports: Read more here. Trump's search to replace Fed Chair Powell continues as new report says up to 11 names under consideration The Trump administration is broadening its search for the next Federal Reserve chair, with reports suggesting as many as 11 candidates may be in the running to replace Jerome Powell when his term expires in May, Yahoo Finance's Jennifer Schonberger reports. Schonberger writes: Read the full story here. CoreWeave stock plummets as AI cloud company reports 'deteriorating' operating income outlook CoreWeave (CRWV) stock plummeted 18% Wednesday after the AI data center company reported a disappointing quarterly outlook for its operating income. The company said the previous day that it expects its third quarter operating income to fall between $160 million and $190 million, below the $192 million expected by Wall Street analysts tracked by Bloomberg. At the same time, the company expects interest expense of $350 million to $390 million during that period. DA Davidson analyst Gil Luria told Yahoo Finance in an email Wednesday that "deteriorating operating income guidance highlights the main issue for CoreWeave - their interest expense is higher than their operating income which means they aren't generating enough profit to pay their debt holders." CoreWeave is one of the largest holders of Nvidia's (NVDA) AI chips and rents its data center capacity to Big Tech firms such as Microsoft (MSFT), Meta (META), and Google (GOOG) as they scramble to power their AI ambitions. CoreWeave stock's performance is closely watched as a metric of AI demand. Instacart, Kroger stocks under pressure after Amazon launches same-day grocery delivery Grocery stocks are under pressure, including Instacart (CART), Kroger (KR), Albertsons (ACI), and Sprouts Farmers Market (SFM), after Amazon (AMZN) announced same-day delivery for groceries. On Wednesday, the e-commerce giant said it would start offering same-day perishable grocery delivery in over 1,000 cities. Amazon plans to reach over 2,300 areas across the US by the end of 2025. The service is available for Prime members for free, only on orders over $25. It will cost $12.99 without the membership. In comparison, Instacart has additional service fees but a lower threshold of $10 or more per delivery order. Amazon stock is roughly flat, compared to the nearly 11% decline in Instacart shares and roughly 4% decline for Kroger, Albertsons, and Sprouts. Crypto exchange Bullish prices IPO at $37 per share, valuing company at $5 billion Cryptocurrency exchange operator Bullish (BLSH) is set to go public on Wednesday at a valuation north of $5 billion as the IPO market looks set to continue a strong summer. Yahoo Finance's Jake Conley reports: Read the full story here. Stocks rise at the open US stocks moved higher on Wednesday after the open as expectations for Fed interest rate cuts rose. The tech-heavy Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) rose more than 0.5%, while the benchmark S&P 500 (^GSPC) gained 0.4%. Within the S&P 500, the Consumer Discretionary Sector (XLY) was up 0.7%, while the Technology Sector (XLK) climbed more than 0.6%. Treasury yields fall after Bessent urges Fed to lower rates US Treasury yields fell on Wednesday as traders increased bets that the Federal Reserve would cut interest rates at its September meeting following a rise in core inflation. At the same time, Treasury Secretary Scott Bessent urged the Fed to cut interest rates by 150 basis points in an interview with Bloomberg on Wednesday, maintaining political pressure on the central bank. The 10-year Treasury yield (^TNX) fell 4 basis points to 4.25%, and the 30-year yield (^TYX) dropped to 4.84%. Tencent earnings, trade truce lift China tech stocks As my colleague Jenny McCall notes below, strong domestic liquidity in China and positive sentiment from the US trade truce have boosted Chinese stocks in recent months. On Wednesday, that rally continued in top Chinese stocks, as recent inflation data boosted hopes for US interest rate cuts and tech companies gained greater clarity around the sale of Nvidia and AMD chips in China. Tencent ( gained 4.7% after the WeChat parent company reported revenue growth of 15%, above estimates. The company is also accelerating AI research to keep up with the competition, which includes Alibaba (BABA), ByteDance, and US companies OpenAI and Anthropic. US-listed shares of e-commerce company Alibaba rose 3.6%, while (JD) added 2%. Baidu (BIDU) climbed 2.5%, and PDD Holdings (PDD) rose 1.9%. VIX fear gauge sinks to lowest level since December The VIX (^VIX) volatility index, a key fear gauge in markets, slipped to 14.49 on Wednesday morning, hitting its lowest level since late December 2024. Despite geopolitical tensions and lingering tariff uncertainty, there are a few reasons why markets are pricing in fewer swings. For one, investors are holding a lot of cash and buying assets at lower prices during sell-offs, according to Bloomberg. Second, the global economy appears to be holding up better than investors expected after President Trump unleashed "Liberation Day" tariffs in April. At that time, the VIX spiked to 52. Bloomberg reports: Read more here. Good morning. Here's what's happening today. Economic data: MBA Mortgage Applications (week ending Aug. 8) Earnings: Brinker International (EAT), Cisco (CSCO), Red Robin (RRGB) Here are some of the biggest stories you may have missed overnight and early this morning: Earnings live: Cava stock tumbles and CoreWeave slides Crypto is having a breakout summer — and bitcoin isn't the reason US leads markets higher as world adapts to tariff policy Dutch Bros eyes expansion as Starbucks battle heats up Investors playing more defense even as stocks climb to new highs US 30-year mortgage rate falls, refi applications surge Market gauges of volatility are fading despite high uncertainty China's $11T stock market stages steady resurgence Bitcoin isn't the reason for crypto's breakout summer The crypto world has had room to run this year amid a series of legislative wins and new financial initiatives. But notably, the big news items don't really involve bitcoin (BTC-USD), Yahoo Finance's Hamza Shaban notes in today's Morning Brief. Hamza writes: Japan's Nikkei hits all-time high The Nikkei 225, the primary index for the Tokyo Stock Exchange, is trading at all-time highs amid optimism that confusion over the recent US-Japan trade agreement is being addressed in addition to the renewed strength in Big Tech. Domestically, Japan's key auto industry is cautiously optimistic that the the positive will outweigh any drag coming from tariffs. "The Nikkei was not able to hit a record until today because chip-related shares and auto shares dragged on the index," Takamasa Ikeda, senior portfolio manager at GCI Asset Management, told Reuters. China's $11 trillion stock market stages steady resurgence Chinese stocks have risen in recent months, helped by strong domestic liquidity and despite a lack of major catalysts. Bloomberg News reports: Read more here. The best points I have heard this morning on CoreWeave CoreWeave (CRWV) was teed up to let down investors last night. And it did on several fronts. First, the company's net loss was much higher than consensus. Second, capital expenditures were a whopping $1 billion higher sequentially. And third, capex may climb another $500 million in the current quarter. While I appreciate the company's revenue backlog of $30.1 billion doubled year over year, the company's mixed results and high debt load are real causes for concern. Hence, the sharp pre-market pullback. Here are two important call outs this morning from DA Davidson analyst Gil Luria: Cava crashing Cava (CAVA) is getting run over premarket to the tune of 23%. Bottom line on this one: When you are valued as a high-growth stock and you don't deliver high growth, your stock will take a beating. Same restaurant sales only rose 2.1%. The company slashed its full-year same-restaurant sales guidance. The earnings call wasn't exactly alarming — the company appears to still be structurally sound. But a slower economy and increased competition is weighing on the brand's results. We heard the same exact tone at Chipotle (CMG) and Starbucks (SBUX) this earnings season. The positive here: Cava is testing salmon for its menu. Who doesn't like salmon in a $15+ salad bowl?! S&P 500, Nasdaq secure more records Wall Street rallied Wednesday, with the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) locking in a second straight day of record closes as traders all but priced in a Federal Reserve rate cut at its next meeting after fresh inflation figures. The Dow Jones Industrial Average (^DJI) led the charge, climbing over 450 points, or above 1%, to close back near record territory. And whhile the S&P 500 and Nasdaq pared earlier gains, they still ended the day up about 0.3% and 0.1%, respectively, extending their record-breaking run. Wall Street rallied Wednesday, with the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) locking in a second straight day of record closes as traders all but priced in a Federal Reserve rate cut at its next meeting after fresh inflation figures. The Dow Jones Industrial Average (^DJI) led the charge, climbing over 450 points, or above 1%, to close back near record territory. And whhile the S&P 500 and Nasdaq pared earlier gains, they still ended the day up about 0.3% and 0.1%, respectively, extending their record-breaking run. Paramount Skydance surges as much as 60% after UFC deal Paramount Skydance Corporation PSKY (PSKY) surged as much as 60% on Wednesday as traders piled into the newly merged media powerhouse — less than a week after the two companies officially tied the knot. In the few days since its merger, CEO David Ellison has wasted no time capturing investor attention, most notably by striking a seven-year, $7.7 billion deal to make Paramount Skydance the exclusive US home for all UFC events. The deal, announced on Monday, marks a major payday for TKO Group Holdings (TKO), the UFC's parent company, far surpassing its previous agreement with Disney's (DIS) ESPN, which was worth roughly $550 million annually. "With lower leverage following the Paramount/Skydance transactions and Ellison-backed $1.5B primary issuance, PSKY is immediately making use of the improved balance sheet," Ric Prentiss, analyst at Raymond James, wrote in reaction to the report. "This deal is a significant move in and of itself for Paramount+, as the consistent live event schedule should help the service drive greater scale of subscribers and less churn, albeit coming with very substantial annual cost," the analyst added. Paramount Skydance Corporation PSKY (PSKY) surged as much as 60% on Wednesday as traders piled into the newly merged media powerhouse — less than a week after the two companies officially tied the knot. In the few days since its merger, CEO David Ellison has wasted no time capturing investor attention, most notably by striking a seven-year, $7.7 billion deal to make Paramount Skydance the exclusive US home for all UFC events. The deal, announced on Monday, marks a major payday for TKO Group Holdings (TKO), the UFC's parent company, far surpassing its previous agreement with Disney's (DIS) ESPN, which was worth roughly $550 million annually. "With lower leverage following the Paramount/Skydance transactions and Ellison-backed $1.5B primary issuance, PSKY is immediately making use of the improved balance sheet," Ric Prentiss, analyst at Raymond James, wrote in reaction to the report. "This deal is a significant move in and of itself for Paramount+, as the consistent live event schedule should help the service drive greater scale of subscribers and less churn, albeit coming with very substantial annual cost," the analyst added. Apple shares jump on report of AI comeback plans Apple (AAPL) shares spiked to session highs on Wednesday after Bloomberg reported the company is planning its artificial intelligence comeback, anchored by an ambitious lineup of new products that include household robots, a lifelike Siri, a smart speaker with a display, and home-security cameras. The stock later pared gains, trading about 1% higher in the late afternoon. Apple's AI ambitions have stumbled this year, with shares down about 7% even as most of its "Magnificent Seven" peers, aside from Tesla (TSLA), have surged. Analysts cite the company's lack of a clear AI strategy as the biggest disappointment. Ahead of Wednesday's report, Apple CEO Tim Cook hinted at the upcoming devices in an all-hands meeting earlier this month, telling employees, "The product pipeline — which I can't talk about — it's amazing, guys. It's amazing,' he said. 'Some of it you'll see soon. Some of it will come later. But there's a lot to see." Apple (AAPL) shares spiked to session highs on Wednesday after Bloomberg reported the company is planning its artificial intelligence comeback, anchored by an ambitious lineup of new products that include household robots, a lifelike Siri, a smart speaker with a display, and home-security cameras. The stock later pared gains, trading about 1% higher in the late afternoon. Apple's AI ambitions have stumbled this year, with shares down about 7% even as most of its "Magnificent Seven" peers, aside from Tesla (TSLA), have surged. Analysts cite the company's lack of a clear AI strategy as the biggest disappointment. Ahead of Wednesday's report, Apple CEO Tim Cook hinted at the upcoming devices in an all-hands meeting earlier this month, telling employees, "The product pipeline — which I can't talk about — it's amazing, guys. It's amazing,' he said. 'Some of it you'll see soon. Some of it will come later. But there's a lot to see." Oil prices fall: Here's what's behind the declines Oil prices slipped on Wednesday as investors perceived the risk of an industry prices slipped on Wednesday as investors perceived the risk of an industry glut. Read more here. Oil prices slipped on Wednesday as investors perceived the risk of an industry prices slipped on Wednesday as investors perceived the risk of an industry glut. Read more here. Ethereum surges to near record as investors bet on 'biggest macro trade' of the next decade Yahoo Finance's Ines Ferré reports: Read more here. Yahoo Finance's Ines Ferré reports: Read more here. Trump's search to replace Fed Chair Powell continues as new report says up to 11 names under consideration The Trump administration is broadening its search for the next Federal Reserve chair, with reports suggesting as many as 11 candidates may be in the running to replace Jerome Powell when his term expires in May, Yahoo Finance's Jennifer Schonberger reports. Schonberger writes: Read the full story here. The Trump administration is broadening its search for the next Federal Reserve chair, with reports suggesting as many as 11 candidates may be in the running to replace Jerome Powell when his term expires in May, Yahoo Finance's Jennifer Schonberger reports. Schonberger writes: Read the full story here. CoreWeave stock plummets as AI cloud company reports 'deteriorating' operating income outlook CoreWeave (CRWV) stock plummeted 18% Wednesday after the AI data center company reported a disappointing quarterly outlook for its operating income. The company said the previous day that it expects its third quarter operating income to fall between $160 million and $190 million, below the $192 million expected by Wall Street analysts tracked by Bloomberg. At the same time, the company expects interest expense of $350 million to $390 million during that period. DA Davidson analyst Gil Luria told Yahoo Finance in an email Wednesday that "deteriorating operating income guidance highlights the main issue for CoreWeave - their interest expense is higher than their operating income which means they aren't generating enough profit to pay their debt holders." CoreWeave is one of the largest holders of Nvidia's (NVDA) AI chips and rents its data center capacity to Big Tech firms such as Microsoft (MSFT), Meta (META), and Google (GOOG) as they scramble to power their AI ambitions. CoreWeave stock's performance is closely watched as a metric of AI demand. CoreWeave (CRWV) stock plummeted 18% Wednesday after the AI data center company reported a disappointing quarterly outlook for its operating income. The company said the previous day that it expects its third quarter operating income to fall between $160 million and $190 million, below the $192 million expected by Wall Street analysts tracked by Bloomberg. At the same time, the company expects interest expense of $350 million to $390 million during that period. DA Davidson analyst Gil Luria told Yahoo Finance in an email Wednesday that "deteriorating operating income guidance highlights the main issue for CoreWeave - their interest expense is higher than their operating income which means they aren't generating enough profit to pay their debt holders." CoreWeave is one of the largest holders of Nvidia's (NVDA) AI chips and rents its data center capacity to Big Tech firms such as Microsoft (MSFT), Meta (META), and Google (GOOG) as they scramble to power their AI ambitions. CoreWeave stock's performance is closely watched as a metric of AI demand. Instacart, Kroger stocks under pressure after Amazon launches same-day grocery delivery Grocery stocks are under pressure, including Instacart (CART), Kroger (KR), Albertsons (ACI), and Sprouts Farmers Market (SFM), after Amazon (AMZN) announced same-day delivery for groceries. On Wednesday, the e-commerce giant said it would start offering same-day perishable grocery delivery in over 1,000 cities. Amazon plans to reach over 2,300 areas across the US by the end of 2025. The service is available for Prime members for free, only on orders over $25. It will cost $12.99 without the membership. In comparison, Instacart has additional service fees but a lower threshold of $10 or more per delivery order. Amazon stock is roughly flat, compared to the nearly 11% decline in Instacart shares and roughly 4% decline for Kroger, Albertsons, and Sprouts. Grocery stocks are under pressure, including Instacart (CART), Kroger (KR), Albertsons (ACI), and Sprouts Farmers Market (SFM), after Amazon (AMZN) announced same-day delivery for groceries. On Wednesday, the e-commerce giant said it would start offering same-day perishable grocery delivery in over 1,000 cities. Amazon plans to reach over 2,300 areas across the US by the end of 2025. The service is available for Prime members for free, only on orders over $25. It will cost $12.99 without the membership. In comparison, Instacart has additional service fees but a lower threshold of $10 or more per delivery order. Amazon stock is roughly flat, compared to the nearly 11% decline in Instacart shares and roughly 4% decline for Kroger, Albertsons, and Sprouts. Crypto exchange Bullish prices IPO at $37 per share, valuing company at $5 billion Cryptocurrency exchange operator Bullish (BLSH) is set to go public on Wednesday at a valuation north of $5 billion as the IPO market looks set to continue a strong summer. Yahoo Finance's Jake Conley reports: Read the full story here. Cryptocurrency exchange operator Bullish (BLSH) is set to go public on Wednesday at a valuation north of $5 billion as the IPO market looks set to continue a strong summer. Yahoo Finance's Jake Conley reports: Read the full story here. Stocks rise at the open US stocks moved higher on Wednesday after the open as expectations for Fed interest rate cuts rose. The tech-heavy Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) rose more than 0.5%, while the benchmark S&P 500 (^GSPC) gained 0.4%. Within the S&P 500, the Consumer Discretionary Sector (XLY) was up 0.7%, while the Technology Sector (XLK) climbed more than 0.6%. US stocks moved higher on Wednesday after the open as expectations for Fed interest rate cuts rose. The tech-heavy Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) rose more than 0.5%, while the benchmark S&P 500 (^GSPC) gained 0.4%. Within the S&P 500, the Consumer Discretionary Sector (XLY) was up 0.7%, while the Technology Sector (XLK) climbed more than 0.6%. Treasury yields fall after Bessent urges Fed to lower rates US Treasury yields fell on Wednesday as traders increased bets that the Federal Reserve would cut interest rates at its September meeting following a rise in core inflation. At the same time, Treasury Secretary Scott Bessent urged the Fed to cut interest rates by 150 basis points in an interview with Bloomberg on Wednesday, maintaining political pressure on the central bank. The 10-year Treasury yield (^TNX) fell 4 basis points to 4.25%, and the 30-year yield (^TYX) dropped to 4.84%. US Treasury yields fell on Wednesday as traders increased bets that the Federal Reserve would cut interest rates at its September meeting following a rise in core inflation. At the same time, Treasury Secretary Scott Bessent urged the Fed to cut interest rates by 150 basis points in an interview with Bloomberg on Wednesday, maintaining political pressure on the central bank. The 10-year Treasury yield (^TNX) fell 4 basis points to 4.25%, and the 30-year yield (^TYX) dropped to 4.84%. Tencent earnings, trade truce lift China tech stocks As my colleague Jenny McCall notes below, strong domestic liquidity in China and positive sentiment from the US trade truce have boosted Chinese stocks in recent months. On Wednesday, that rally continued in top Chinese stocks, as recent inflation data boosted hopes for US interest rate cuts and tech companies gained greater clarity around the sale of Nvidia and AMD chips in China. Tencent ( gained 4.7% after the WeChat parent company reported revenue growth of 15%, above estimates. The company is also accelerating AI research to keep up with the competition, which includes Alibaba (BABA), ByteDance, and US companies OpenAI and Anthropic. US-listed shares of e-commerce company Alibaba rose 3.6%, while (JD) added 2%. Baidu (BIDU) climbed 2.5%, and PDD Holdings (PDD) rose 1.9%. As my colleague Jenny McCall notes below, strong domestic liquidity in China and positive sentiment from the US trade truce have boosted Chinese stocks in recent months. On Wednesday, that rally continued in top Chinese stocks, as recent inflation data boosted hopes for US interest rate cuts and tech companies gained greater clarity around the sale of Nvidia and AMD chips in China. Tencent ( gained 4.7% after the WeChat parent company reported revenue growth of 15%, above estimates. The company is also accelerating AI research to keep up with the competition, which includes Alibaba (BABA), ByteDance, and US companies OpenAI and Anthropic. US-listed shares of e-commerce company Alibaba rose 3.6%, while (JD) added 2%. Baidu (BIDU) climbed 2.5%, and PDD Holdings (PDD) rose 1.9%. VIX fear gauge sinks to lowest level since December The VIX (^VIX) volatility index, a key fear gauge in markets, slipped to 14.49 on Wednesday morning, hitting its lowest level since late December 2024. Despite geopolitical tensions and lingering tariff uncertainty, there are a few reasons why markets are pricing in fewer swings. For one, investors are holding a lot of cash and buying assets at lower prices during sell-offs, according to Bloomberg. Second, the global economy appears to be holding up better than investors expected after President Trump unleashed "Liberation Day" tariffs in April. At that time, the VIX spiked to 52. Bloomberg reports: Read more here. The VIX (^VIX) volatility index, a key fear gauge in markets, slipped to 14.49 on Wednesday morning, hitting its lowest level since late December 2024. Despite geopolitical tensions and lingering tariff uncertainty, there are a few reasons why markets are pricing in fewer swings. For one, investors are holding a lot of cash and buying assets at lower prices during sell-offs, according to Bloomberg. Second, the global economy appears to be holding up better than investors expected after President Trump unleashed "Liberation Day" tariffs in April. At that time, the VIX spiked to 52. Bloomberg reports: Read more here. Good morning. Here's what's happening today. Economic data: MBA Mortgage Applications (week ending Aug. 8) Earnings: Brinker International (EAT), Cisco (CSCO), Red Robin (RRGB) Here are some of the biggest stories you may have missed overnight and early this morning: Earnings live: Cava stock tumbles and CoreWeave slides Crypto is having a breakout summer — and bitcoin isn't the reason US leads markets higher as world adapts to tariff policy Dutch Bros eyes expansion as Starbucks battle heats up Investors playing more defense even as stocks climb to new highs US 30-year mortgage rate falls, refi applications surge Market gauges of volatility are fading despite high uncertainty China's $11T stock market stages steady resurgence Economic data: MBA Mortgage Applications (week ending Aug. 8) Earnings: Brinker International (EAT), Cisco (CSCO), Red Robin (RRGB) Here are some of the biggest stories you may have missed overnight and early this morning: Earnings live: Cava stock tumbles and CoreWeave slides Crypto is having a breakout summer — and bitcoin isn't the reason US leads markets higher as world adapts to tariff policy Dutch Bros eyes expansion as Starbucks battle heats up Investors playing more defense even as stocks climb to new highs US 30-year mortgage rate falls, refi applications surge Market gauges of volatility are fading despite high uncertainty China's $11T stock market stages steady resurgence Bitcoin isn't the reason for crypto's breakout summer The crypto world has had room to run this year amid a series of legislative wins and new financial initiatives. But notably, the big news items don't really involve bitcoin (BTC-USD), Yahoo Finance's Hamza Shaban notes in today's Morning Brief. Hamza writes: The crypto world has had room to run this year amid a series of legislative wins and new financial initiatives. But notably, the big news items don't really involve bitcoin (BTC-USD), Yahoo Finance's Hamza Shaban notes in today's Morning Brief. Hamza writes: Japan's Nikkei hits all-time high The Nikkei 225, the primary index for the Tokyo Stock Exchange, is trading at all-time highs amid optimism that confusion over the recent US-Japan trade agreement is being addressed in addition to the renewed strength in Big Tech. Domestically, Japan's key auto industry is cautiously optimistic that the the positive will outweigh any drag coming from tariffs. "The Nikkei was not able to hit a record until today because chip-related shares and auto shares dragged on the index," Takamasa Ikeda, senior portfolio manager at GCI Asset Management, told Reuters. The Nikkei 225, the primary index for the Tokyo Stock Exchange, is trading at all-time highs amid optimism that confusion over the recent US-Japan trade agreement is being addressed in addition to the renewed strength in Big Tech. Domestically, Japan's key auto industry is cautiously optimistic that the the positive will outweigh any drag coming from tariffs. "The Nikkei was not able to hit a record until today because chip-related shares and auto shares dragged on the index," Takamasa Ikeda, senior portfolio manager at GCI Asset Management, told Reuters. China's $11 trillion stock market stages steady resurgence Chinese stocks have risen in recent months, helped by strong domestic liquidity and despite a lack of major catalysts. Bloomberg News reports: Read more here. Chinese stocks have risen in recent months, helped by strong domestic liquidity and despite a lack of major catalysts. Bloomberg News reports: Read more here. The best points I have heard this morning on CoreWeave CoreWeave (CRWV) was teed up to let down investors last night. And it did on several fronts. First, the company's net loss was much higher than consensus. Second, capital expenditures were a whopping $1 billion higher sequentially. And third, capex may climb another $500 million in the current quarter. While I appreciate the company's revenue backlog of $30.1 billion doubled year over year, the company's mixed results and high debt load are real causes for concern. Hence, the sharp pre-market pullback. Here are two important call outs this morning from DA Davidson analyst Gil Luria: CoreWeave (CRWV) was teed up to let down investors last night. And it did on several fronts. First, the company's net loss was much higher than consensus. Second, capital expenditures were a whopping $1 billion higher sequentially. And third, capex may climb another $500 million in the current quarter. While I appreciate the company's revenue backlog of $30.1 billion doubled year over year, the company's mixed results and high debt load are real causes for concern. Hence, the sharp pre-market pullback. Here are two important call outs this morning from DA Davidson analyst Gil Luria: Cava crashing Cava (CAVA) is getting run over premarket to the tune of 23%. Bottom line on this one: When you are valued as a high-growth stock and you don't deliver high growth, your stock will take a beating. Same restaurant sales only rose 2.1%. The company slashed its full-year same-restaurant sales guidance. The earnings call wasn't exactly alarming — the company appears to still be structurally sound. But a slower economy and increased competition is weighing on the brand's results. We heard the same exact tone at Chipotle (CMG) and Starbucks (SBUX) this earnings season. The positive here: Cava is testing salmon for its menu. Who doesn't like salmon in a $15+ salad bowl?! Cava (CAVA) is getting run over premarket to the tune of 23%. Bottom line on this one: When you are valued as a high-growth stock and you don't deliver high growth, your stock will take a beating. Same restaurant sales only rose 2.1%. The company slashed its full-year same-restaurant sales guidance. The earnings call wasn't exactly alarming — the company appears to still be structurally sound. But a slower economy and increased competition is weighing on the brand's results. We heard the same exact tone at Chipotle (CMG) and Starbucks (SBUX) this earnings season. The positive here: Cava is testing salmon for its menu. Who doesn't like salmon in a $15+ salad bowl?! 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