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That wraps up our initial coverage of Coherent’s Q4 results. Thank you for stopping by!
Coherent just reported earnings, with shares initially up 1% following the report. Here are the key numbers:
Quick Read:
Coherent delivered a clean double beat, topping revenue estimates by 3% and adjusted EPS expectations by more than 7%.
AI-driven demand continues fueling explosive growth, with revenue rising 34% and adjusted EPS surging 74% year over year.
With Coherent (NYSE:COHR) trading at $354.03 into the 4:30 PM ET call, here are fresh angles beyond the standard preview.
Listen for hedging on H2 2026 CPO/NPO revenue timing. Any softness there could unwind the call-heavy options skew flagged earlier.
Three AI-optical peers have reported this cycle, and all three beat consensus on both lines.
Common themes: 1.6T optics ramping, CPO/NPO engagements layering in, and gross-margin expansion across the cohort.
LITE alone added 1,260 bps to non-GAAP gross margin YoY.
Coherent (NYSE:COHR) options are pricing a 15.04% post-print move. A beat-and-raise looks priced in.
With Coherent (NYSE:COHR) up 9.08% today, here are some questions analysts might have on tonight’s earnings call at 4:30 PM ET:
Consensus analyst price target: $394.62 with 17 buy ratings.
Coherent enters its fiscal fourth-quarter earnings report with its datacenter and communications business generating 75% of total revenue, up dramatically from 41% on a pro forma basis one year ago.
Management previously guided for quarterly revenue between $1.91-$2.05 billion, with adjusted earnings of $1.52 to $1.72 per share.
However, with Coherent shares up 206.14% over the past year, investors might be expecting the business to blow past these targets.
Management has said fiscal 2027 growth should exceed fiscal 2026’s rate, supported by customer orders extending into calendar 2028.
That means guidance validating that outlook would keep Coherent’s AI photonics growth story firmly intact, while a softer forecast might shift attention toward the company’s capital requirements and $3.18 billion debt load.
Live coverage has ended. The full story is below.
Coherent Corp. (NYSE:COHR | COHR Price Prediction) reports fiscal Q4 2026 results after the bell today at 4:05 PM ET. With the stock up 8.8% today in intraday trading at $356.50 and a fresh S&P 500 inclusion, this earnings report tests whether AI datacenter momentum can keep pace with elevated expectations.
Last quarter, Coherent posted revenue of $1.8056 billion, up 20.54% year over year, and non-GAAP EPS of $1.41, extending the beat streak to four consecutive quarters.
Non-GAAP gross margin expanded 105 basis points to 39.6%, while operating margin climbed to 20.3%. NVIDIA’s $2 billion equity investment reset the balance sheet, lifting cash to $3.0 billion and pulling leverage down to 0.5x. Sentiment has followed the numbers, with shares up 78.02% year to date.
| Metric | Q4 FY26 Guide | Q3 FY26 Actual | YoY Reference |
|---|---|---|---|
| Revenue | $1.91B to $2.05B | $1.806B | +20.5% |
| Non-GAAP EPS | $1.52 to $1.72 | $1.41 | +55% YoY |
| Gross Margin | 39.0% to 41.0% | 39.6% | +105 bps |
The guidance midpoint implies sequential revenue growth and a step-up in EPS, with the gross margin range building toward the 42%+ Investor Day target.
Any number landing in the upper half continues the pattern management has established across FY26.
Tonight, I’ll be watching the InP capacity ramp closely. Management said it will hit the doubling target one quarter earlier than planned, and 6-inch wafers produce more than four times as many devices at less than half the cost compared with 3-inch wafers. That mechanic is central to the margin story.
Analysts will also watch the 1.6T transceiver ramp. CEO Jim Anderson called it “faster than what we would have thought, say, a year ago” and flagged it as “beneficial to gross margin.” Commentary on 800G durability into calendar year 2026 also matters.
Investors will also be tracking CPO commentary. Coherent sizes CPO as a $15 billion+ incremental addressable market, with initial scale-out revenue in the second half of the calendar year under the NVIDIA agreement. OCS revenue conversion after the resolved production bottleneck is the other datacenter tell.
The industrial line remains a counterweight after a 16.1% YoY decline. Anderson pointed to meaningful semiconductor capital equipment bookings, so any inflection here changes the mix conversation.
| Quarter | EPS Surprise | Day-Of Move | 1-Week Move | 30-Day Move |
|---|---|---|---|---|
| Q3 FY26 | +1.44% | -7.39% | +26.86% | +11.51% |
| Q2 FY26 | +6.61% | -0.83% | +3.28% | +24.57% |
| Q1 FY26 | +11.54% | +18.32% | -12.13% | +20.99% |
| Q4 FY25 | -3.26% | -19.61% | -5.51% | +13.99% |
On average, shares moved +4.83% seven days after earnings over the past year.
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Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
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