Coherent stock faces AI growth test after 50% Q1 revenue jump

Coherent reported a record fiscal first quarter on Wednesday, November 4, after the company said demand from AI infrastructure continued to lift its datacenter and communications business. The company posted revenue of 2.37 billion US dollars for the three months ended September 30, 2026, an increase of 49.9 percent from the year-earlier period, according to its earnings release.

Coherent stock traded at 174.55 euros on Lang & Schwarz at 12:48 CET on Thursday, November 5, 2026, 0.29 percent below the Xetra close of 175.05 euros on Wednesday, November 4. The calculation uses the same euro instrument and the latest completed Xetra session.

Record quarter raises growth expectations

GAAP diluted earnings per share rose to 1.90 US dollars from 1.19 US dollars a year earlier. Non-GAAP diluted earnings per share reached 2.09 US dollars, compared with 1.16 US dollars in the prior-year quarter. Coherent said non-GAAP gross margin expanded to 40.6 percent from 38.7 percent, while non-GAAP operating margin increased to 23.2 percent from 19.5 percent.

The Datacenter & Communications segment generated 1.9517 billion US dollars in revenue, up from 1.0900 billion US dollars a year earlier. Industrial revenue declined to 418.6 million US dollars from 491.4 million US dollars. The company attributed the broader expansion to the build-out of AI infrastructure and the transition from copper to optical connectivity.

Chief executive Jim Anderson said established businesses delivered strong growth while newer areas were beginning to ramp. He expects fiscal 2027 pro forma revenue growth to exceed 60 percent. Chief financial officer Sherri Luther pointed to pricing optimization and cost improvements and said Coherent expects to achieve a quarter with non-GAAP gross margin above 45 percent before the end of calendar 2028.

Guidance points to another step up

For the second quarter of fiscal 2027, Coherent expects revenue between 2.55 billion and 2.75 billion US dollars. The company forecasts non-GAAP gross margin of 40 percent to 42 percent, operating expenses of 430 million to 450 million US dollars and diluted earnings per share of 2.28 to 2.48 US dollars.

Management also expects to reach its first 3 billion US dollar revenue quarter by the end of fiscal 2027 and its first 4 billion US dollar quarter in fiscal 2028. The targets raise the execution bar: demand must remain strong while the company expands manufacturing capacity and preserves the recent margin gains.

Coherent reported negative operating cash flow of 92.7 million US dollars in the quarter, while additions to property, plant and equipment reached 775.5 million US dollars. The combination shows the investment required to support growth, but it also leaves execution, capital intensity and customer demand as important issues for investors.

For a broader view of the US market, see the current S&P 500 market environment.

Investors can follow the real-time quote of Coherent stock. Further results and management commentary will shape whether the strong first-quarter performance develops into the growth path outlined for fiscal 2027. More news and analyses are available on Coherent stock.

Coherent Corp. at a glance

• Company: Coherent Corp.
• ISIN: US19247G1076
• Ticker: COHR
• Home exchange: NYSE
• Lang & Schwarz quote: 174.55 euros at 12:48 CET on November 5, 2026
• Change versus Xetra close: 0.29 percent below the 175.05-euro close on November 4, 2026
• Sector: Technology