Summary
Coherent Corp. reported strong performance for the nine months ended March 31, 2026, with revenues up 19% to $5.07 billion, driven primarily by a 34% surge in its Datacenter & Communications segment. This growth was fueled by robust demand for AI datacenters and optical networking solutions. The company also saw a significant improvement in profitability, with diluted EPS rising to $2.92 from $0.30 in the prior year's comparable period. This enhanced profitability was supported by a higher gross margin of 37% (up from 35%), driven by cost reductions, efficiency gains, and pricing optimization, particularly within the Datacenter & Communications segment. Despite a decrease in the Industrial segment's revenue due to divestitures, the overall financial health of Coherent Corp. appears robust, bolstered by strategic investments and a strong demand environment in its key markets.
Financial Highlights
49 data points| Revenue | $1.81B |
| Cost of Revenue | $1.13B |
| Gross Profit | $679.95M |
| R&D Expenses | $185.99M |
| SG&A Expenses | $267.64M |
| Operating Expenses | $1.62B |
| Net Income | $191.40M |
| EPS (Basic) | $1.01 |
| EPS (Diluted) | $0.97 |
| Shares Outstanding (Basic) | 190.22M |
| Shares Outstanding (Diluted) | 196.37M |
Key Highlights
- 1Revenue for the nine months ended March 31, 2026, increased by 19% to $5.07 billion compared to the prior year's comparable period.
- 2The Datacenter & Communications segment experienced substantial revenue growth of 34% year-over-year, reaching $3.66 billion, driven by AI datacenter demand and optical networking solutions.
- 3Gross margin improved to 37% for the nine months ended March 31, 2026, up from 35% in the prior year, reflecting cost efficiencies and pricing strategies.
- 4Diluted earnings per share (EPS) significantly increased to $2.92 for the nine months ended March 31, 2026, compared to $0.30 in the prior year.
- 5Coherent Corp. secured a strategic agreement with NVIDIA, including a multi-billion dollar purchase commitment and a $2 billion equity investment, to advance optics technologies and support AI infrastructure.
- 6Despite revenue declines in the Industrial segment due to divestitures, the overall company performance shows strong top-line and bottom-line growth.
- 7The company's liquidity remains strong, with $1.59 billion in cash and cash equivalents and $825 million in short-term investments as of March 31, 2026.