Coherent Corp
Q4 2026 Earnings
Market Reaction
Did COHR Beat Earnings? Q4 2026 Results
Coherent Corp. capped fiscal 2026 with a quarter that validated its aggressive pivot toward AI infrastructure, posting Q4 adjusted EPS of $1.74 against a consensus estimate of $1.62, a 7.60% beat, while revenue of $2.05 billion topped expectations by 3.26% and grew 33.7% year-over-year. The story behind the numbers was straightforward: datacenter demand. The Datacenter & Communications segment generated $1.61 billion in Q4 revenue, representing 79% of total sales and growing 59% year-over-year on a pro forma basis, as hyperscalers continued spending heavily on AI-related optical connectivity. Margin expansion reinforced the operating leverage narrative, with non-GAAP gross margin reaching 40.2% and adjusted EBITDA margin widening to 25.6% from 22.9% a year earlier. <a href="https://247wallst.com/investing/2026/08/12/live-will-coherent-crush-q4-earnings-after-soaring-9-today/">Heading into the print</a>, investor expectations were already elevated, and Coherent delivered. Looking ahead, the company guided Q1 fiscal 2027 revenue of $2.20 billion to $2.40 billion and non-GAAP EPS of $1.85 to $2.05, with new platforms including co-packaged optics and optical circuit switches beginning to ramp.
- Surging AI datacenter demand driving Datacenter & Communications segment growth of 59% YoY on pro forma basis
- Non-GAAP operating margin expanded to 21.8% from 18.0% YoY driven by operating leverage
- Non-GAAP gross margin expanded 215 bps YoY to 40.2%
- Non-GAAP EPS growth more than twice the rate of revenue growth
- Transition from copper to optical connectivity in AI datacenters
“Fiscal 2026 was an outstanding year for Coherent, with record revenue, significant margin expansion, and non-GAAP EPS growth that was more than twice the rate of revenue growth.”
Coherent CEO, on the earnings call
Forward Guidance & Outlook
For Q1 fiscal 2027, Coherent expects revenue of $2.2 billion to $2.4 billion, non-GAAP gross margin of 39.5% to 41.5%, non-GAAP total operating expenses of $400 million to $420 million, a non-GAAP tax rate of 18% to 20%, and non-GAAP EPS of $1.85 to $2.05. The company highlighted exceptional customer demand, expanding production capacity, and multiple new growth platforms beginning to ramp, including CPO/NPO (H2 2026), thermal solutions (now entering revenue), and optical circuit switches (H1 2027), targeting over $20B in incremental SAM by calendar 2030.
COHR YoY Financials
COHR Revenue by Segment
COHR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.