Coherent's shares declined modestly (-0.4%) following a solid quarter marked by continued revenue growth and capacity expansion, but the market appeared cautious despite the upbeat outlook and record bookings.
- Fiscal 26 revenue rose 28% year-over-year to a record $7 billion, with Q4 revenue up 42% year-over-year and 14% sequentially.
- Non-GAAP EPS increased approximately 59% for the full year, with a 74% year-over-year increase in Q4.
- Data center and communications segment, accounting for 79% of revenue, grew 40% full year and 59% in Q4 year-over-year; data center revenue alone grew 41% full year and 66% in Q4 year-over-year.
- Indium Phosphide production capacity is on track to double by the end of the current quarter, contributing meaningfully to margin expansion and revenue growth.
- Despite strong bookings and extended customer order visibility into 2028, the market reaction suggests some reservations, possibly reflecting cautious sentiment on the ambitious capacity ramp or future margin assumptions.
Community Discussion