Coherent Corp. Reports Strong Q3 FY26 Results Driven by Datacenter Demand, Provides Positive Q4 Outlook
COHR has more than doubled off its 52-week low of $66.71.
Summary
Coherent Corp. announced strong Q3 FY26 financial results, with revenue up 21% year-over-year and non-GAAP EPS of $1.41, exceeding estimates, driven by robust datacenter demand. The company also provided a positive outlook for Q4 FY26.
Key Events · Earnings and Guidance · COHR
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Strong Q3 FY26 Financial Performance
Coherent Corp. reported Q3 FY26 revenue of $1.81 billion, a 21% increase year-over-year (27% pro forma). GAAP diluted EPS was $0.97, and non-GAAP diluted EPS was $1.41, exceeding IBES estimates.
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Datacenter & Communications Segment Drives Growth
The Datacenter & Communications segment revenue grew significantly to $1.36 billion, up from $968.7 million in Q3 FY25, fueled by strong demand from AI datacenter infrastructure.
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Expanding Margins and Profitability
GAAP gross margin increased by 243 basis points year-over-year to 37.7%, while non-GAAP gross margin expanded by 105 basis points to 39.6%.
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Positive Q4 FY26 Outlook
The company forecasts Q4 FY26 revenue between $1.91 billion and $2.05 billion, with non-GAAP EPS expected to be between $1.52 and $1.72.
Analysis · COHR · Industrial Applications And Services
Coherent Corp. delivered robust third-quarter fiscal year 2026 results, surpassing analyst estimates for adjusted earnings per share, as noted by recent news. The company reported significant year-over-year revenue growth, particularly in its Datacenter & Communications segment, which saw a substantial increase. This strong performance is attributed to exceptionally high demand from AI datacenter infrastructure, prompting Coherent to rapidly expand its capacity. The positive momentum is expected to continue, with the company providing an optimistic outlook for the fourth quarter of fiscal 2026, including projected revenue and non-GAAP EPS ranges. This indicates continued operational strength and strategic alignment with high-growth technology trends.
At the time of this filing, COHR was trading at $311.03 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $67.3B. The 52-week trading range was $66.71 to $364.80. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.