Coda Octopus Stock Edges Up On Q1 Earnings Beat, But Retail’s Still Cautious

Shares of Coda Octopus Group Inc. (CODA) gained nearly 1% in Monday’s regular trading session after the company’s first-quarter results beat Wall Street expectations.

Coda posted earnings per share (EPS) of $0.08 in Q1, far ahead of the expected $0.03. For comparison, its EPS in the year-ago period was $0.06.

The company’s revenue stood at $5.21 million in the quarter, ahead of the estimated $5.1 million and growing from $4.46 million during the same period a year earlier.

The New York-based company provides engineering services and solutions primarily to prime U.S. defense contractors. It has two divisions – underwater technology solutions and a discrete engineering business.

“The increase in revenue is due to the addition of our new business unit, Precision Acoustics Limited, which contributed 25.2% of our consolidated revenue in the FQ2025,” said Coda CEO Annmarie Gayle.

The company had a sobering outlook because of the change in the U.S. government’s policy on renewables but said that the attempts to prioritize domestic manufacturing favors its products and solutions.

It also said that the increase in defense spending in Europe should offset the demand slowdown due to the Trump administration’s goal of an 8% cut in defense spending.

However, analysts at Alliance Global Partners were not as optimistic and cut their price target for Coda to $8 from $10 while maintaining a ‘Buy’ rating, according to The Fly. This implies an upside of nearly 20% from Monday’s closing price.

The brokerage added that the beginning of a ramp in the adoption of underwater heads-up displays could be a “saving grace” for Coda.

Retail sentiment on Stocktwits around Coda was in the ‘neutral’ (50/100) territory at the time of writing.

Coda’s stock has fallen over 15% year-to-date.

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