Coherent Corp
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did COHR Beat Earnings? Q2 2026 Results
Coherent Corp. delivered a strong fiscal second quarter, posting non-GAAP diluted EPS of $1.29 against a consensus estimate of $1.2061 — a beat of nearly 7% — while revenue of $1.69 billion topped expectations by 2.74% and climbed 17.5% year-over-year. The driving force behind the quarter was unmistakable: the Datacenter & Communications segment surged 34% year-over-year to $1.21 billion, now accounting for roughly 72% of total revenue as insatiable AI-driven demand for high-speed optical interconnects powered through the period. Non-GAAP gross margin expanded to 39.0%, and non-GAAP operating margin improved to 19.9% from 18.5% a year ago, reflecting the benefits of portfolio streamlining that included the completed sale of the Aerospace & Defense business. <a href="https://247wallst.com/investing/2026/02/04/after-164-gain-over-the-past-year-coherent-reports-earnings-today/">coming off a 164% gain</a> over the prior year, the stock rose roughly 7% on the results. Looking ahead, management guided Q3 revenue of $1.70 billion to $1.84 billion with non-GAAP EPS of $1.28 to $1.48, signaling sustained momentum through the second half of fiscal 2026.
- Strong demand in datacenter and communications segment
- Non-GAAP gross margin expansion of 77 basis points year-over-year to 39.0%
- Non-GAAP operating margin improvement to 19.9%
- Revenue increased 17% year-over-year reported, 22% pro forma adjusted for A&D divestiture
“We delivered strong year-over-year revenue growth in the December quarter, driven by another quarter of strong demand in our datacenter and communications segment. We expect continued strong growth in the second-half of fiscal 2026 and throughout fiscal 2027 based on strong datacenter and communications demand and our continued production capacity expansion along with improving demand in our Industrial segment.”
Coherent CEO, on the earnings call
Forward Guidance & Outlook
For Q3 FY26 (quarter ending March 2026), Coherent expects revenue of $1.70 billion to $1.84 billion, non-GAAP gross margin of 38.5% to 40.5%, non-GAAP operating expenses of $320 million to $340 million, non-GAAP tax rate of 18% to 20%, and non-GAAP EPS of $1.28 to $1.48. The Q3 outlook includes $5M of revenue from the Munich tools business prior to its divestiture close at end of January 2026. Management expects continued strong growth through H2 FY26 and FY27 based on datacenter demand and capacity expansion.
COHR YoY Financials
COHR Revenue by Segment
COHR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.