Coherent shares drop 11.63% amid pre-earnings profit-taking ahead of Q4 report.

Shares of Coherent fell 11.63% after a strong recent rally, as investors took profits ahead of the company's Q4 FY2026 earnings report scheduled for August 12. The decline is attributed to positioning rather than negative news, supported by options data showing traders buying downside protection. Despite the drop, Coherent's fundamentals remain strong with solid revenue growth and optimistic guidance. The broader optics sector also saw declines after an initial rally, reflecting profit-taking following last week's surge on regulatory news. Investors will watch the upcoming earnings report closely for revenue results and future outlook.