After 164% Gain Over the Past Year, Coherent Reports Earnings Today

"Coherent Inc (NYSE: COHR) reports FY2026 Q2 earnings today after market close, with Wall Street expecting the optical components supplier to extend its five-quarter beat streak amid surging AI datacenter demand. Analysts forecast EPS of $1.22 on revenue of $1.64 billion, representing an approximately 14% year-over-year (YOY) growth. Shares have surged more than 21% year-to-date (YTD) and 164% over the past year, dramatically outperforming the technology sector over both periods."

"The Numbers That Matter Wall Street expects continued momentum following FY2026 Q1's strong performance, where Coherent delivered revenue of $1.581 billion and EPS of $1.16. The company has beaten EPS estimates in five consecutive quarters, with surprise margins averaging around 10% recently. Key metrics include non-GAAP gross margin, which expanded to 38.7% in Q1 from 36.5% a year earlier, and datacenter & communications segment performance, which generated $1.09 billion last quarter. Management guided Q2 fiscal 2026 revenue to $1.56 billion to $1.70 billion with EPS of $1.10 to $1.30."

"What Happened Last Quarter 3 key takeaways from Q1 fiscal 2026: Revenue beat consensus by $11 million while EPS exceeded estimates by $0.10, driven by AI-related datacenter demand CEO Jim Anderson stated: "Revenue growth of 19% YOY in the September quarter on a pro forma basis was driven by strong demand from AI-related datacenters and communications. We expect continued strong growth throughout this fiscal year based on increasing datacenter and communications demand along with our continued production capacity expansion." Operating cash flow plunged 70% YOY to $46 million while free cash flow turned negative at -$57.9 million, raising questions about capital intensity"

Coherent reports FY2026 Q2 results after market close with analysts forecasting $1.22 EPS on $1.64 billion revenue, about 14% year-over-year growth. The company previously delivered Q1 revenue of $1.581 billion and EPS of $1.16, marking five consecutive quarters of EPS beats with average surprise margins near 10%. Non-GAAP gross margin expanded to 38.7% from 36.5% year-over-year. The datacenter & communications segment produced $1.09 billion in the prior quarter. Management guided Q2 revenue between $1.56 billion and $1.70 billion and EPS between $1.10 and $1.30. Operating cash flow fell 70% to $46 million and free cash flow was negative $57.9 million, reflecting heavy capital investment. Shares have risen markedly year-to-date and over the past year.

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