Coherent stock gets FY2027 boost from 60% growth outlook

Coherent Corp. reported a record fiscal first quarter on Wednesday, November 4, 2026, as demand for optical connectivity in AI infrastructure drove revenue and earnings higher. In its earnings release, the photonics company said fiscal Q1 revenue reached a record 2.37 billion US dollars for the quarter ended September 30.

Revenue increased 49.9 percent from the year-earlier quarter and 15.9 percent from the previous quarter. On a pro forma basis, which excludes the financial impact of businesses divested in 2026, revenue rose 56 percent year over year and 16 percent sequentially. The distinction matters because the pro forma comparison better reflects the continuing business following those disposals.

AI demand drives operating leverage

Datacenter and communications revenue totaled 1.95 billion US dollars, compared with 1.09 billion US dollars a year earlier. Industrial revenue was 418.6 million US dollars, down from 491.4 million US dollars in the prior-year quarter. The segment mix highlights the current concentration of growth in optical networking and data center products.

GAAP diluted earnings per share rose to 1.90 US dollars from 1.19 US dollars. On a non-GAAP basis, diluted earnings per share increased to 2.09 US dollars from 1.16 US dollars, while non-GAAP gross margin expanded to 40.6 percent from 38.7 percent. Coherent said non-GAAP results exclude items including share-based compensation, acquired-intangible amortization, restructuring charges and integration costs.

Chief Executive Jim Anderson said established businesses delivered strong growth while newer growth areas began to ramp. He linked the opportunity to the transition from copper to optical connectivity in AI data centers and said Coherent's manufacturing scale and photonics portfolio position the company to address higher bandwidth and energy-efficiency requirements.

Guidance points to another step up

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

Management expects fiscal 2027 pro forma revenue growth to exceed 60 percent, more than twice the pro forma growth rate for fiscal 2026. It also expects to reach a first 3 billion US dollar revenue quarter by the end of fiscal 2027 and a first 4 billion US dollar quarter in fiscal 2028. Chief Financial Officer Sherri Luther additionally said Coherent expects its first quarter with non-GAAP gross margin above 45 percent before the end of calendar 2028.

Coherent stock traded at 168.00 euros on Lang & Schwarz at 13:30 CET on Friday, November 6, 2026. Investors can follow the real-time quote of Coherent stock.

The broader US equity market remains an important backdrop for high-growth technology shares as investors weigh AI infrastructure spending against execution and valuation risk.

For more earnings developments, product launches and outlook changes, see More news and analyses on Coherent stock.