COHERENT (COHR) Company Report

Coherent reported strong Q1 2026 financial results, with revenue of $1.58 billion (up 17% year-over-year) and non-GAAP EPS of $1.16 (up 73% year-over-year). Pro forma revenue, excluding divested businesses, increased 19% year-over-year.
The company issued Q2 2026 guidance, projecting revenue between $1.56 billion and $1.7 billion and non-GAAP EPS between $1.10 and $1.30.
Growth is primarily fueled by exceptionally strong demand in the AI data center and communications segments, with data center revenue anticipated to accelerate to approximately 10% sequential growth in Q2 2026.
Coherent is aggressively expanding production capacity for indium phosphide lasers and transceiver modules, including ramping 6-inch indium phosphide production at two sites to roughly double internal capacity over the next year.
Strategic portfolio optimization efforts led to a $400 million debt reduction in Q1 2026 from the sale of the aerospace and defense business, with another divestiture announced to further reduce debt.

Nov 5, 2025, 10:00 PM

Transcript

COHR Announces Strong Q1 Fiscal 2026 Results and Positive Q2 Outlook

COHR

Earnings

Guidance Update

Revenue Acceleration/Inflection

COHR reported Q1 Fiscal 2026 revenue of $1.58 billion, representing a 17% increase compared to Q1 Fiscal 2025.
Non-GAAP diluted earnings per share for Q1 Fiscal 2026 was $1.16, a 73% increase from $0.67 in Q1 Fiscal 2025.
Revenue growth was primarily driven by strong demand from AI-related datacenters and communications, with the Datacenter and Communications segment growing 26% year-over-year and accounting for 69% of Q1 FY26 revenue.
For the second quarter of fiscal 2026, the company expects revenue to be between $1.56 billion and $1.70 billion, with non-GAAP earnings per share projected to be between $1.10 and $1.30.

Nov 5, 2025, 10:00 PM

Presentation

Coherent Reports Strong Q1 2026 Results Driven by AI Data Center Demand and Strategic Divestitures

COHR

Earnings

Revenue Acceleration/Inflection

M&A

Coherent reported strong Q1 2026 financial results, with revenue of $1.58 billion (up 17% year-over-year) and non-GAAP EPS of $1.16 (up 73% year-over-year). Pro forma revenue, excluding a divested business, increased 19% year-over-year.
The company experienced record bookings and exceptionally strong demand in its data center and communications segments, particularly for 800 gig and 1.6T transceivers driven by AI data center networks. Data center revenue grew 23% year-over-year in Q1, with expectations for 10% sequential growth in the current quarter.
Strategic initiatives include the completed sale of its aerospace and defense business, which facilitated a $400 million debt paydown and reduced the debt leverage ratio to 1.7 times. Coherent is also expanding transceiver module capacity in Malaysia and Vietnam to support strong demand.

Nov 5, 2025, 10:00 PM

Transcript

Coherent Reports Strong Q1 2026 Results and Positive Outlook

COHR

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Coherent reported Q1 2026 revenue of $1.58 billion, a 17% year-over-year increase (or 19% pro forma), and non-GAAP EPS of $1.16, up 73% year-over-year. The company provided Q2 2026 guidance for revenue between $1.56 billion and $1.7 billion and non-GAAP EPS between $1.10 and $1.30.
The company experienced record bookings and exceptionally strong demand in its AI data center and communications segments, particularly for 800 gig and 1.6T transceivers. Data center revenue is projected to accelerate to approximately 10% sequential growth in Q2 2026.
To meet this demand, Coherent is aggressively expanding its 6-inch indium phosphide production capacity at two sites, aiming to double total internal capacity over the next year, and is also expanding transceiver module assembly capacity.
Coherent reduced its debt by $400 million in Q1 2026, bringing its leverage ratio down to 1.7 times, and completed a debt refinancing that lowered its interest rate by 60 basis points.

Nov 5, 2025, 10:00 PM

Transcript

Coherent Corp. Reports Strong Q1 FY26 Results and Provides Q2 FY26 Outlook

COHR

Earnings

Guidance Update

M&A

Coherent Corp. reported Q1 FY26 revenue of $1.58 billion, an increase of 17% year-over-year (19% on a pro forma basis adjusted for the sale of the Aerospace & Defense business).
Q1 GAAP diluted EPS was $1.19, improving by $1.23 year-over-year, and Non-GAAP diluted EPS was $1.16, improving by $0.49 year-over-year.
The company's GAAP gross margin increased by 249 basis points to 36.6% and Non-GAAP gross margin increased by 200 basis points to 38.7% in Q1 FY26.
For Q2 FY26, Coherent Corp. expects revenue to be between $1.56 billion and $1.70 billion and Non-GAAP EPS to be between $1.10 and $1.30.
During Q1 FY26, the company paid down $400 million of debt and refinanced its debt, and also closed the sale of its Aerospace and Defense business, which is immediately accretive to gross margin and EPS.

Nov 5, 2025, 9:11 PM

8-K

Coherent Corp. Reports Strong First Quarter Fiscal 2026 Results

COHR

Earnings

Revenue Acceleration/Inflection

M&A

Coherent Corp. announced first quarter fiscal year 2026 revenue of $1.58 billion, marking a 17% year-over-year increase and 19% on a pro forma basis.
GAAP diluted EPS was $1.19 and non-GAAP diluted EPS was $1.16 for Q1 FY26, showing significant year-over-year improvements.
The company achieved a GAAP gross margin of 36.6% and a non-GAAP gross margin of 38.7%, both increasing year-over-year.
This performance was driven by strong demand from AI-related datacenters and communications.
Coherent paid down $400 million of debt and completed the sale of its Aerospace and Defense business, which is immediately accretive to gross margin and EPS.

Nov 5, 2025, 9:06 PM

Press Release

Coherent Announces Agreement to Sell Materials Processing Tools Division

COHR

M&A

Coherent Corp. has entered into a definitive agreement to sell its product division that makes and sells tools for materials processing to Bystronic.
The proceeds from this sale are intended to reduce debt, which is expected to be immediately accretive to Coherent’s EPS.
The divested business unit employs approximately 400 people and generates about $100 million in annual sales.
The transaction is anticipated to close in early 2026, subject to customary closing conditions.

Oct 31, 2025, 1:00 PM

Press Release

COHERENT CORP. Amends Credit Agreement

COHR

Debt Issuance

COHERENT CORP. filed an 8-K on September 26, 2025, detailing amendments (Amendment No. 4 and Amendment No. 5) to its Credit Agreement, both effective on the same date.
The amendments establish 2025 Revolving Loans and 2025 Incremental Term A Loans.
Initial pricing for these new loans includes a Term Benchmark Loan margin of 1.50% per annum and an ABR Loan margin of 0.50% per annum.
The initial commitment fee rate for the 2025 Revolving Loans is 0.20% per annum.
The amendments also involve the conversion of existing Term A Loans into 2025 Incremental Term A Loans or their repayment.

Sep 26, 2025, 8:22 PM

8-K

Coherent Launches WELD2D MP Laser Welding Scanner

COHR

Product Launch

New Projects/Investments

Coherent Corp. launched the WELD2D MP, an all-new laser welding scanner, on September 12, 2025.
The WELD2D MP is purpose-built for critical applications in high-growth sectors such as e-mobility (EV) and electronics, including foil-to-tab and thin busbar welding.
This new scanner aims to redefine cost-performance standards by combining advanced precision with an optimized cost-performance balance, enabling Coherent to scale its customer base and increase sales volumes by penetrating new segments of the industrial market.

Sep 12, 2025, 8:05 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for COHERENT.

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