Coherent stock lifts fiscal 2027 growth outlook above 60%

Coherent reported record revenue for the first quarter of fiscal 2027 ended September 30, 2026, and lifted its longer-term growth ambitions. In its November 4 release, the photonics company said fiscal 2027 pro forma revenue growth should exceed 60 percent, more than double the pro forma growth rate achieved in fiscal 2026.

Coherent stock traded at 210.55 euros on Lang & Schwarz at 1:17:42 p.m. CET on Wednesday, November 11, 2026.

Record quarter strengthens growth case

Revenue reached 2.37 billion US dollars, an increase of 49.9 percent from the year-earlier quarter and 15.9 percent from the fourth quarter of fiscal 2026. GAAP diluted earnings per share rose to 1.90 US dollars from 1.19 US dollars, while non-GAAP diluted earnings per share increased to 2.09 US dollars from 1.16 US dollars.

The earnings release said GAAP gross margin expanded to 39.1 percent from 36.6 percent a year earlier. Non-GAAP gross margin reached 40.6 percent, up from 38.7 percent, while non-GAAP operating margin climbed to 23.2 percent from 19.5 percent. Non-GAAP net earnings attributable to Coherent rose 91 percent to 422 million US dollars.

Management attributed the quarter's performance to strong established businesses and the early ramp of newer growth areas. Chief Executive Jim Anderson said the transition from copper to optical connectivity in AI data centers is increasing demand for bandwidth and energy efficiency. Chief Financial Officer Sherri Luther pointed to pricing optimization and cost improvements as drivers of operating leverage and gross-margin expansion.

Data-center demand drives mix

Datacenter and Communications revenue rose to 1.95 billion US dollars from 1.09 billion US dollars a year earlier. Industrial revenue declined to 418.6 million US dollars from 491.4 million US dollars. The segment mix puts the expansion of optical connectivity and the pace of AI infrastructure investment at the center of the outlook, while also highlighting the weaker contribution from Industrial.

Coherent expects second-quarter fiscal 2027 revenue of 2.55 billion to 2.75 billion US dollars. The company projects a non-GAAP gross margin of 40 percent to 42 percent, operating expenses of 430 million to 450 million US dollars, a tax rate of 18 percent to 20 percent and non-GAAP diluted earnings per share of 2.28 to 2.48 US dollars.

Targets raise execution demands

Beyond the next quarter, Coherent 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 company also raised its longer-term target, saying it expects to post a quarterly non-GAAP gross margin above 45 percent before the end of calendar 2028.

Those targets give investors a clear set of milestones for judging whether capacity expansion, customer demand and newer product lines can support the upgraded trajectory. The non-GAAP figures exclude items such as share-based compensation, acquired-intangible amortization, restructuring charges and integration costs, so the GAAP results remain important when assessing the quality of earnings growth.

Coherent's investor relations release said the first-quarter results covered the period ended September 30 and were announced on November 4. The next financial checkpoint is the second-quarter fiscal 2027 report, when investors can compare actual revenue and margins with the new guidance.

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Coherent Corp. at a glance

• Company: Coherent Corp.
• ISIN: US19247G1076
• Ticker: COHR
• Primary exchange: New York Stock Exchange
• Lang & Schwarz price: 210.55 euros at 1:17:42 p.m. CET on November 11, 2026
• Fiscal period: First quarter fiscal 2027 ended September 30, 2026