Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTFiona CraigMon, June 15, 2026 at 3:56 PM GMT+2 2 min readreport pen calculator NEW SIZE ©ShutterstockCoda Octopus Group, Inc. (NASDAQ:CODA) shares climbed nearly 9% in premarket trading on Monday after the underwater technology specialist reported fiscal second-quarter 2026 earnings that surpassed analyst expectations, even as revenue came in below forecasts.The company delivered stronger profitability during the quarter, supported by expanding margins and lower operating costs.Earnings Outperform ExpectationsFor the quarter ended April 30, 2026, Coda Octopus reported adjusted earnings per share of $0.15, exceeding the consensus estimate of $0.13.Revenue totaled $6.9 million, falling short of analyst expectations of $7.52 million and declining 1.6% from $7.0 million recorded in the same period a year earlier.Management attributed the softer revenue performance to geopolitical tensions in the Middle East and Asia, which delayed offshore projects in several important markets.Profitability Improves SignificantlyDespite lower sales, the company posted a sharp increase in profitability.Net income rose 86.8% year-over-year to $1.7 million, compared with $0.9 million in the second quarter of fiscal 2025.Operating income increased 64.8% to $1.8 million, while operating margin expanded to 26.0% from 15.5% in the prior-year period.The improvement was driven by stronger gross margins and a 21.4% reduction in selling, general and administrative expenses.“I am pleased with our overall operating results for the second quarter of fiscal 2026, during which we delivered increases in both net income and earnings per share compared to the second quarter of fiscal 2025,” said Annmarie Gayle, Chairman and CEO.Mixed Performance Across Business SegmentsThe company’s core Marine Technology Business generated revenue of $2.8 million, down 26.8% from $3.9 million a year earlier as demand weakened among customers in the Middle East and Asia affected by the Iran conflict.Elsewhere, performance was stronger.Revenue from the Defense Engineering Services Business increased 37.9% to $2.5 million, while the Acoustics Sensors and Material Business recorded growth of 17.5%, reaching $1.5 million.Navy Approval Marks Key MilestoneDuring the quarter, Coda Octopus secured formal approval from the U.S. Navy for its DAVD untethered diving system.Gayle described the development as “a significant inflection point” that could support broader adoption of the technology across naval diving operations worldwide.The company also received its first orders for the newly introduced Echoscope PIPE NANO GEN SERIES, providing further momentum for its product portfolio.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info