10-K · August 14, 2026
Coherent’s fiscal 2026 results show a strong AI-optics-led inflection: revenue rose 23% to $7.118 billion, gross margin reached 37%, and diluted EPS recovered to $4.12. Datacenter & Communications is the clear growth…
Earnings analysis · 10-Q
COHR earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Coherent delivered $2.3703 billion of revenue, 2.8% above consensus, with revenue increasing 15.6% sequentially and GAAP diluted EPS rising to $1.90 from $1.19. Datacenter & Communications led growth, and management…
Read full summary
Coherent delivered $2.3703 billion of revenue, 2.8% above consensus, with revenue increasing 15.6% sequentially and GAAP diluted EPS rising to $1.90 from $1.19. Datacenter & Communications led growth, and management issued a strong Q2 FY27 outlook of $2.55-$2.75 billion of revenue and $2.28-$2.48 of non-GAAP EPS. However, operating cash flow of negative $92.7 million and capital expenditures of $775.5 million imply free cash flow of approximately negative $868.2 million, while variable-rate debt remains exposed to a $7 million interest-expense impact per 100-basis-point rate change.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.9
- Segment
- Datacenter & Communications: identified as the primary growth driver, but segment revenue and growth percentages were not disclosed in the supplied filing text.
What stood out
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Revenue growth exceeded consensus
Revenue was $2.3703 billion, up 15.6% from $2.05 billion in the immediately preceding quarter and approximately 50% from $1.58 billion in the comparable period shown in the provided history; it also exceeded the $2.3056 billion consensus estimate by 2.8%.
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GAAP EPS improved year over year
GAAP diluted EPS was $1.90, compared with $1.19 in the immediately preceding quarter and $1.19 in the comparable prior-year period shown in the provided history.
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Datacenter drove reported growth
Datacenter & Communications was identified as the leading revenue-growth contributor, supporting total quarterly revenue of $2.3703 billion; the supplied filing text does not provide the segment’s exact revenue or growth rate.
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Strong forward revenue outlook
Management’s Q2 FY27 outlook calls for revenue of $2.55 billion to $2.75 billion and non-GAAP EPS of $2.28 to $2.48, while fiscal 2027 pro forma revenue growth is expected to exceed 60%.
What to watch
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Cash flow remained deeply negative
Operating cash flow was negative $92.7 million and capital expenditures were $775.5 million, implying free cash flow of approximately negative $868.2 million for the quarter and indicating substantial cash investment despite reported GAAP EPS of $1.90.
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Variable-rate debt sensitivity
Variable-rate borrowings expose the company to higher financing costs; a 100-basis-point interest-rate change would have increased interest expense by $7 million for the three months ended September 30, 2026, absent effective hedging.
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Large interest-rate hedge exposure
The company’s interest-rate cap notional was increased to $1.5 billion from $500 million on September 1, 2024, highlighting the scale of variable-rate debt exposure and hedging requirements.
Management's outlook
Management provided Q2 FY27 non-GAAP EPS guidance of $2.28-$2.48 and revenue guidance of $2.55-$2.75 billion. It also expects fiscal 2027 pro forma revenue growth to exceed 60% and targets non-GAAP gross margin above 45% before the end of calendar 2028. The filing does not provide a comparable prior outlook against which to assess whether guidance was raised, maintained, or lowered.
Earlier filings 4
10-Q · May 6, 2026
Coherent Corp reported Q3 2026 results with revenues of $1.806 billion, a significant increase of 21% from $1.498 billion in Q3 2025. The company generated a net income of $182 million, or $0.97 per diluted share,…
10-Q · November 5, 2025
Coherent reported a strong quarter: revenues of $1,581,378,000 (up from $1,348,135,000 a year ago) and diluted EPS of $1.19 versus $(0.04) in the prior-year period. Datacenter & Communications led the expansion (to…
10-K · August 15, 2025
Coherent reported fiscal 2025 revenue of $5.810 billion, a 23% increase year-over-year driven by strong AI datacenter demand in its Networking/datacom business. Gross margin expanded to 35% (up 424 bps) and segment…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.