Coherent, Inc. Q4 2026 Earnings Recap

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.