Why Is Coda Octopus Stock Up Today?
Coda Octopus grew fiscal third-quarter revenue 9.2% to about $7.7 million while its core marine technology business fell 15.2% for a second straight decline. The stock was 0.97% higher ten minutes after the 07:00 ET release. As of 12:38 ET it was +3.37% against Friday's close.
- Fiscal third-quarter revenue rose 9.2% to about $7.7 million; net income was $1.4 million, or $0.12 a diluted share, and cash reached $31.7 million with no debt.
- Marine Technology revenue fell 15.2% to $3.4 million after a 26.8% drop in the second quarter, while Defense Engineering Services grew 68.3% to $2.7 million.
- Gross margin slipped to 65.4% from 68.3% on sales mix. The stock rose 1.16% in the first premarket minute after the 07:00 ET release.
Reaction by asset (real prices)
| Asset | 2m before | At release | +1m | +10m | +1m % | +10m % |
|---|---|---|---|---|---|---|
| CODA | 10.35 | 10.35 | 10.47 | 10.45 | +1.16% | +0.97% |
Coda Octopus stock is up today after its fiscal third-quarter report showed revenue up 9.2% to about $7.7 million, with growth in defense engineering services covering a second straight decline in its core marine technology business. The stock went from $10.35 to $10.47 in the first premarket minute after the 07:00:36 ET release, a 1.16% gain, and was 0.97% higher after ten minutes. As of 12:38 ET the stock was 3.37% above Friday's close of about $10.02, at $10.358. Most of that gain was in place before the results crossed: the last premarket trade before the release was already about 3.3% above Friday's close.
Coda Octopus Q3 fiscal 2026 results by business
| Business | Q3 FY2026 | vs year ago | Q2 FY2026 | vs year ago |
|---|---|---|---|---|
| Marine Technology | $3.4M | -15.2% | $2.8M | -26.8% |
| Defense Engineering Services | $2.7M | +68.3% | $2.5M | +37.9% |
| Acoustic Sensors and Materials | $1.6M | +10.4% | $1.5M | +17.5% |
| Total revenue | $7.7M | +9.2% | $6.9M | -1.6% |
The third quarter ended July 31, 2026. Net income was $1.4 million, or $0.12 a diluted share, against $1.3 million, or $0.11, a year earlier. Operating income rose 11.1% to $1.5 million and pre-tax income rose 16.0% to $1.8 million. The company ended the quarter with $31.7 million of cash, no debt and, for the first time, positive retained earnings.
Where the growth came from
Revenue grew because of the smaller businesses. Marine Technology, which the company calls its core business, fell 15.2% to $3.4 million from $4.0 million, after a 26.8% drop in the second quarter. The company tied the decline to reduced customer activity in the Middle East and parts of Asia after geopolitical instability there. Echoscope sonar products account for about 80% of Marine Technology revenue.
Defense Engineering Services grew 68.3% to $2.7 million from $1.6 million, following 37.9% growth in the second quarter. The shift shows up in the mix: Marine Technology was about 44% of revenue this quarter, against about 56% a year earlier.
The mix also shows up in margin. Gross margin was 65.4%, down from 68.3% a year earlier, which the company attributed to the type and geography of the quarter's sales. Profit still rose because the company runs a largely fixed cost base.
What management pointed to next
- Early customer response to the newly launched Echoscope PIPE NANO Gen Series.
- At least five customers working on integrating NANO systems into their underwater vehicles.
How the stock traded after the release
| Time (ET) | Price | Change from before |
|---|---|---|
| Before 07:00 | $10.35 | — |
| 07:01 | $10.47 | +1.16% |
| 07:10 | $10.45 | +0.97% |
| 12:38 (session, vs Friday close) | $10.358 | +3.37% |
The premarket reaction was small and thinly traded, a gain of about one percent that held for ten minutes.
Why is Coda Octopus stock up today?
Coda Octopus reported fiscal third-quarter revenue up 9.2% to about $7.7 million at 07:00:36 ET, with defense engineering growth offsetting a 15.2% drop in marine technology. The stock rose 1.16% in the first premarket minute. As of 12:38 ET it was +3.37% against Friday's close.
What did Coda Octopus report for Q3 fiscal 2026?
Revenue of about $7.7 million, up 9.2%, net income of $1.4 million or $0.12 a diluted share, gross margin of 65.4% and $31.7 million of cash with no debt.
Why did Coda Octopus marine technology revenue fall?
Marine Technology revenue fell 15.2% to $3.4 million, which the company tied to reduced customer activity in the Middle East and parts of Asia after geopolitical instability. It had fallen 26.8% in the second quarter.
Sources
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Coda Octopus Group Reports Fiscal Third Quarter 2026 Financial Results
— GlobeNewswire
Revenue about $7.7 million vs $7.1 million (+9.2%); Marine Technology $3.4 million (-15.2%); Defense Engineering Services $2.7 million (+68.3%); Acoustic Sensors and Materials $1.6 million (+10.4%); net income $1.4 million ($0.12); gross margin 65.4% vs 68.3%; cash $31.7 million, no debt.
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Earnings call transcript: Coda Octopus Q3 2026 revenue beats as stock edges up
— Investing.com
Echoscope products account for about 80% of Marine Technology revenue; at least five customers are integrating Echoscope PIPE NANO systems into underwater vehicles.
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