Coherent stock faces higher bar after FY2027 outlook upgrade
Published on 11/06/2026 at 16:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth outlook raises the bar
- Record fiscal first-quarter performance was driven by demand for optical connectivity in AI infrastructure.
- Second-quarter guidance points to another step up in revenue and adjusted earnings.
- Management expects stronger margins as newer growth areas begin to contribute.
Coherent reported a record fiscal first quarter on Wednesday, November 4, as demand for optical connectivity in artificial-intelligence infrastructure lifted revenue and earnings. The company said sales reached 2.37 billion US dollars for the quarter ended September 30, according to its fiscal first-quarter earnings release.
Revenue increased 49.9 percent from the prior-year quarter and 15.9 percent sequentially. On a pro forma basis, which excludes the financial impact of businesses divested in 2026, revenue rose 56 percent year over year. Datacenter and communications revenue reached 1.95 billion US dollars, while industrial revenue declined to 418.6 million US dollars.
AI demand drives operating leverage
GAAP diluted earnings per share rose to 1.90 US dollars from 1.19 US dollars. Adjusted diluted earnings per share increased to 2.09 US dollars from 1.16 US dollars, and adjusted gross margin expanded to 40.6 percent from 38.7 percent. Coherent said its adjusted figures exclude items including share-based compensation, acquired-intangible amortization, restructuring charges and integration costs.
Chief Executive Jim Anderson linked the opportunity to the shift from copper to optical connectivity in AI data centers. He said Coherent's photonics portfolio and manufacturing scale position the company to address rising bandwidth and energy-efficiency requirements.
Guidance points to another step up
For fiscal second-quarter 2027, Coherent expects revenue of 2.55 billion to 2.75 billion US dollars, adjusted gross margin of 40 percent to 42 percent, operating expenses of 430 million to 450 million US dollars and adjusted diluted earnings per share of 2.28 to 2.48 US dollars.
Management expects fiscal 2027 pro forma revenue growth to exceed 60 percent, more than twice the pro forma growth rate for fiscal 2026. It also expects a first 3 billion US dollar revenue quarter by the end of fiscal 2027 and a first 4 billion US dollar quarter in fiscal 2028. Chief Financial Officer Sherri Luther said the first quarter with adjusted gross margin above 45 percent is expected before the end of calendar 2028.
The real-time quote of Coherent stock stood at 166.05 euros on Lang & Schwarz at 16:36 CET on Friday, November 6, 2026, down 1.16 percent from 168.00 euros at 13:30 CET in the previous report on the same day. The movement is a separate market reading from the company's operating outlook.
Coherent Corp. at a glance
- Company: Coherent Corp.
- ISIN: US19247G1076
- Ticker: COHR
- Home exchange: New York Stock Exchange
- Lang & Schwarz quote: 166.05 euros at 16:36 CET on November 6, 2026
- Fiscal period: First quarter fiscal 2027, ended September 30, 2026
The broader US equity market remains an important backdrop for high-growth technology shares as investors weigh AI infrastructure spending against execution and valuation risk.
For more earnings developments, product launches and outlook changes, see more news and analyses on Coherent stock.
