Coherent Q4 Earnings Beat, Outlook Rises
Coherent Q4 earnings beat with $2.05B revenue; raised Q1 2027 guidance on AI datacenter and optical-connectivity demand, prompting analyst revisions.
KEY TAKEAWAYS
- Following the filing, Coherent reported Q4 revenue of $2.05 billion and non-GAAP EPS $1.74, beating estimates.
- Guidance set Q1 2027 revenue $2.2-$2.4 billion and non-GAAP EPS $1.85-$2.05, above consensus.
- Management framed a shift from copper to optical connectivity, signaling a multi-year AI-datacenter growth runway.
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Coherent Corp. (COHR) reported fiscal fourth-quarter 2026 results on Aug. 12, 2026, with revenue and non-GAAP earnings per share exceeding estimates. The company raised fiscal first-quarter 2027 guidance, citing strong AI datacenter demand and a shift toward optical connectivity.
Q4 Results and Margins
In a press release at 4:05 p.m. ET, Coherent said fourth-quarter revenue reached $2.05 billion, up 34% year over year and 42% on a pro forma basis. Non-GAAP earnings per share were $1.74, while GAAP earnings per share stood at $1.19. GAAP gross margin was 38.5%, and non-GAAP gross margin was 40.2%.
According to an SEC-hosted filing summary, the Datacenter & Communications segment generated $1.62 billion in revenue for the quarter and $5.27 billion for fiscal 2026, compared with $3.76 billion a year earlier. This highlights the segment’s growing scale in networking and data-center products.
Guidance and AI Demand
Coherent projected fiscal first-quarter 2027 revenue between $2.2 billion and $2.4 billion, with non-GAAP earnings per share ranging from $1.85 to $2.05. The midpoints of those ranges are $2.3 billion and $1.95, respectively. Management described the quarter as starting with exceptional customer demand, expanding production capacity, and multiple new growth platforms beginning to ramp.
The company said AI datacenter architectures are increasingly transitioning from copper to optical connectivity, positioning Coherent’s photonic technology portfolio and manufacturing scale to support accelerating growth.
Analysts raised forecasts after the results, with consensus estimates near $2.13 billion in revenue and $1.77 in earnings per share for the coming quarter.
Together, the quarterly beat, the Datacenter & Communications segment’s scale, and the raised guidance indicate management expects sustained AI-datacenter demand and capacity expansion to drive growth through fiscal 2027.
