Coherent, Inc. Earnings Recaps
Q4 2026
Aug 14, 2026
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.
Key takeaways
- 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.
Q3 2026
May 8, 2026
Coherent’s shares fell 4.9% post-earnings as investors reacted negatively to a cautious outlook on near-term capacity constraints and supply chain issues, despite strong demand and record backlog levels. Concerns around production bottlenecks and margin risks overshadowed the solid revenue growth.
Key takeaways
- Revenue increased 9% sequentially and 27% year-over-year, showing accelerating growth momentum.
- Datacenter & Communications segment, representing 75% of revenue, grew over 40% year-over-year, with data center sales alone up 37% year-over-year and 13% sequentially.
- Gross margins expanded both sequentially and year-over-year, aided by the ramp of 6-inch indium phosphide production lines.
- Production constraints remain a key challenge; the company only recently resolved bottlenecks in optical circuit switch (OCS) capacity and expects capacity growth to lag demand in the near term.
- Management pushed back the long-term capacity ramp by at least a quarter and underscored the criticality of supply chain execution to realize backlog and revenue growth, prompting investor caution.
Q2 2026
Feb 5, 2026
Coherent reported a robust fiscal Q2 2026 with a 22% year-over-year revenue increase, driven by exceptional demand for photonic technology in data centers and communications sectors, alongside significant improvements in profit margins.
Key takeaways
- Revenue rose 9% sequentially and 22% year-over-year, excluding divested segments.
- Non-GAAP EPS grew 11% sequentially and 35% year-over-year, reflecting effective cost management and operational leverage.
- Data center revenue surged 14% sequentially and 36% year-over-year, propelled by innovative 800 gig and 1.6 T transceivers.
- Record bookings in the data center segment resulted in a book-to-bill ratio exceeding 4x, indicating strong future demand visibility.
- Expansion of indium phosphide production is on track to double by Q4, enhancing operational capabilities and cost efficiencies.