Coherent Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did COHR Beat Earnings? Q1 2026 Results
Coherent Corp. posted a convincing beat across the board in its fiscal first quarter of 2026, with earnings per share of $1.16 topping the $1.0425 consensus by 11.27% and revenue of $1.58 billion coming in 2.97% ahead of the $1.54 billion Wall Street had <a href="https://247wallst.com/investing/2025/11/05/what-to-expect-on-coherent-cohr-q1-earnings-coverage/">anticipated heading into the report</a>. The top line grew 17.3% year over year, powered overwhelmingly by AI-driven datacenter demand — the Datacenter & Communications segment alone generated $1.09 billion, up 26% year over year and accounting for 69% of total revenue. Margin discipline added to the story: non-GAAP gross margin expanded to 38.7% and non-GAAP operating margin reached 19.5%, up from 16.1% a year ago, reflecting favorable product mix and operating leverage. The completed sale of the Aerospace & Defense business — which generated a $115.20 million GAAP gain and funded $400 million in debt repayment — further sharpened the company's focus. Looking ahead, management guided Q2 revenue of $1.56 to $1.70 billion and non-GAAP EPS of $1.10 to $1.30, with CEO Jim Anderson expressing confidence in continued growth fueled by expanding datacenter infrastructure investment.
- Strong demand from AI-related datacenters and communications
- Datacenter & Communications segment revenue growth of 26% Y/Y
- Non-GAAP gross margin expansion of 200 bps Y/Y to 38.7%
- Non-GAAP operating margin expansion to 19.5% from 16.1% Y/Y
- Gain on sale of Aerospace & Defense business of $115.2 million
“Revenue growth of 19% year-over-year in the September quarter on a pro forma basis was driven by strong demand from AI-related datacenters and communications. We expect continued strong growth throughout this fiscal year based on increasing datacenter and communications demand along with our continued production capacity expansion.”
Coherent CEO, on the earnings call
Forward Guidance & Outlook
For Q2 FY26, Coherent expects revenue of $1.56–$1.70 billion, non-GAAP gross margin of 38%–40%, non-GAAP operating expenses of $300–$320 million, non-GAAP tax rate of 18%–20%, and non-GAAP EPS of $1.10–$1.30. The company projects a full-year non-GAAP normalized tax rate of 19%. CEO Jim Anderson expects continued strong growth throughout FY26 driven by increasing datacenter and communications demand and continued production capacity expansion.
COHR YoY Financials
COHR Revenue by Segment
COHR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.