What To Expect On Coherent (COHR) Q1 Earnings Coverage

"Coherent ( Nasdaq: COHR) reports fiscal first-quarter 2026 results after the close. The photonics and semiconductor equipment supplier is coming off a strong FY25, up 47%, fueled by booming AI datacenter demand and double-digit earnings growth. Shares have risen sharply in recent months, reflecting optimism that management can sustain that momentum into FY26. Last quarter, Coherent reported normalized EPS of $1.00, beating consensus by 8.7%, on revenue of $1.53 billion, up 16% year-over-year."

"AI Datacenter and Transceiver Growth- Coherent's core growth engine remains its AI datacenter and communications division, which surged 51% in FY25. The company shipped initial volumes of 1.6T transceivers last quarter and expects a broader ramp through calendar 2026. Investors will look for sequential growth in 800G and early traction in 1.6T units as key validation of its technology leadership."

"Indium Phosphide and U.S. Manufacturing Expansion- Production at its new 6-inch indium phosphide facility in Sherman, Texas in August 2025, the world's first at that scale has capability enhances capacity and cost efficiency while deepening its supply chain resilience. Updates on ramp progress and utilization will be closely watched, as it underpins margin expansion and product supply for next-gen optical components. Coherent's new multiyear VCSEL supply agreement with Apple will begin contributing revenue in the second half of 2026."

Coherent reported normalized EPS of $1.00 and revenue of $1.53 billion, a 16% year-over-year increase. Strong AI datacenter and telecom demand and initial shipments of 1.6T transceivers supported recent results. The company began production at a new 6-inch indium phosphide facility in Sherman, Texas in August 2025 to boost capacity, lower costs, and strengthen supply-chain resilience. A multiyear VCSEL supply agreement with Apple will start contributing revenue in the second half of 2026. Sequential growth in 800G and ramping 1.6T units, plus facility utilization, are key drivers for margin expansion and product supply.

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