Coherent stock resets growth expectations after 60% outlook
Published on 11/12/2026 at 13:01 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth Outlook Raises Investor Stakes
- Coherent delivered record fiscal first-quarter revenue and expanded both GAAP and adjusted margins.
- Management linked the growth opportunity to rising optical connectivity demand in AI data centers.
- Second-quarter guidance points to another sequential increase in revenue and adjusted earnings.
Coherent reported a record first quarter of fiscal 2027 on November 4, with revenue rising to 2.37 billion US dollars for the period ended September 30. The photonics company also raised its full-year pro forma revenue growth outlook above 60%, putting execution against AI infrastructure demand at the center of the investment case.
According to the Coherent investor release, first-quarter revenue increased 49.9% from the year-earlier quarter and 15.9% from the fourth quarter. On a pro forma basis, revenue grew 56% year over year. Datacenter and Communications revenue reached 1.95 billion US dollars, up from 1.09 billion US dollars a year earlier, while Industrial revenue declined to 418.6 million US dollars from 491.4 million US dollars.
Margins And Earnings Move Higher
Profitability improved alongside the sales acceleration. GAAP gross margin increased to 39.1% from 36.6% in the prior-year quarter, while adjusted gross margin reached 40.6%, compared with 38.7%. GAAP diluted earnings per share rose to 1.90 US dollars from 1.19 US dollars, and adjusted diluted earnings per share increased to 2.09 US dollars from 1.16 US dollars.
Management attributed the margin expansion to pricing optimization and cost improvements. Chief executive Jim Anderson said established businesses delivered strong growth while newer growth areas began to ramp. He also pointed to the transition from copper to optical connectivity in AI data centers as a demand driver for Coherent's photonics platform.
Chief financial officer Sherri Luther said the operating leverage and margin progress supported a higher long-term ambition. Coherent now expects to post a quarter with adjusted gross margin above 45% before the end of calendar 2028. The target is forward-looking and depends on demand, production scale and the company's ability to control costs as capacity expands.
Next Quarter Sets The Near-Term Test
For the second quarter of fiscal 2027, Coherent expects revenue between 2.55 billion and 2.75 billion US dollars. The company projects adjusted gross margin of 40% to 42% and adjusted diluted earnings per share of 2.28 to 2.48 US dollars. It 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.
Coherent stock traded at 202.35 euros on Lang & Schwarz at 13:00 CET on Thursday, November 12, 2026. The earnings update leaves investors weighing the pace of AI-related optical demand against the higher growth and margin expectations now embedded in management's outlook.
Coherent Corp. Key Facts
- Company: Coherent Corp.
- ISIN: US19247G1076
- Ticker: COHR
- Home exchange: NYSE
- Lang & Schwarz quote: 202.35 euros on November 12, 2026 at 13:00 CET
- Fiscal first-quarter revenue: 2.37 billion US dollars for the period ended September 30, 2026
- Fiscal second-quarter revenue outlook: 2.55 billion to 2.75 billion US dollars
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