Key Takeaways for Coherent Corp. Stock as of August 2026
- Fiscal Q4 Beat: Coherent posted $2.05B in Q4 FY26 revenue (+42% YoY pro forma) and non-GAAP EPS of $1.74, up 74% YoY, capping a fiscal year that topped $7B in revenue for the first time.
- Fiscal 2027 Target: Management guided Q1 FY27 revenue to $2.2B-$2.4B and EPS to $1.85-$2.05, and set a new goal of exceeding $3B in quarterly revenue by the end of fiscal 2027.
- Indium Phosphide Ramp: Coherent will double its internal indium phosphide laser output YoY by the end of the current quarter, a full quarter ahead of schedule, after June-quarter laser production rose ~80% YoY.
- CEO on Capacity: CEO Jim Anderson said the company is “not constrained in the assembly and test capacity,” with indium phosphide supply as the sole bottleneck standing between Coherent and faster transceiver revenue.
Coherent’s Q4 print didn’t just beat, it accelerated, and that combination of scale and speed is what the guide for fiscal 2027 is built on. See how COHR stock compares against these numbers on TIKR for free →
Coherent’s Q4 Growth Accelerated to 42% and Set Up a $3 Billion Quarter
Coherent Corp. (COHR) closed fiscal 2026 with a fourth quarter that grew faster than the three before it, not slower. Pro forma revenue reached $2.05 billion, up 14% sequentially and 42% year over year, capping a fiscal year in which full-year revenue hit a record $7.12 billion, up 28% on a pro forma basis. Non-GAAP earnings per share climbed 74% year over year to $1.74, more than doubling revenue’s growth rate and confirming that operating leverage is doing real work alongside the top line.
That leverage traces back to the Datacenter & Communications segment, which supplied 79% of total revenue and grew 59% year over year in the quarter. Inside that segment, data center revenue jumped 66% year over year, its third straight quarter of double-digit sequential growth, while communications revenue rose 56% on strength in data center interconnect and scale-across networking. Both lines are feeding off the same input: indium phosphide, the semiconductor material behind Coherent’s transceiver lasers. CEO Jim Anderson addressed the ramp directly on the Q4 2026 earnings call: “We produced about 80% more indium phosphide lasers in our June quarter than we did the prior year… we would expect our data center growth, for instance, this quarter, on a year-over-year basis to exceed 80%.” Those lasers feed directly into 800-gig and 1.6T transceivers, and Coherent now expects to double its output capacity again, one quarter ahead of its original schedule.
Gross margin followed the same trajectory, expanding to 40.2% in Q4, up 215 basis points year over year, while operating margin reached 21.8%. Coherent used that expanding margin to fund capital expenditures that jumped to $556 million from $131 million a year earlier, even as debt leverage fell to 0.7x from 2x, alongside $513 million in debt paydown. Management is betting those investments pay off fast: CFO Sherri Luther pegged the payback period on data center capacity at roughly 18 months.
The fiscal 2027 guide reflects that confidence. Coherent expects Q1 revenue of $2.2 billion to $2.4 billion and EPS of $1.85 to $2.05, with a stated goal of crossing $3 billion in quarterly revenue by the end of the fiscal year, driven by co-packaged optics revenue starting in the December quarter and optical circuit switching demand that has already doubled Coherent’s addressable market estimate to more than $4 billion.
Coherent’s Q4 beat and its indium phosphide ramp both point to accelerating demand across the data center optics stack, and that’s the setup TIKR’s valuation model is now pricing against. Track COHR stock’s next move on TIKR for free →
TIKR Values COHR Stock at $1,523, Pricing In Sustained AI Optics Growth
TIKR’s mid-case model values Coherent Corp. stock at $1,523 by mid-2031, implying a 328% total return from the current price of $356, or 35% annualized over roughly five years.
That annualized return sits well above what investors typically demand from an established industrial technology name, and it reflects a stock priced for a business compounding through multiple growth cycles rather than one quarter of momentum. Coherent stock isn’t being valued on its current $7.12 billion revenue base alone. It’s being valued on the trajectory toward $3 billion quarterly runs, expanding indium phosphide capacity and new product lines like co-packaged optics and optical circuit switching still ramping.
The target is reachable because the drivers behind Coherent’s Q4 acceleration are structural, not one-time. Management has doubled its indium phosphide capacity a full quarter early, booked customer orders extending into calendar 2028, and signed long-term agreements running through the end of the decade, giving the revenue and margin assumptions underpinning TIKR’s model real visibility rather than guesswork.
The Q1 FY27 guide and the newly stated $3 billion quarterly target give the model’s growth assumptions a near-term checkpoint. See the full TIKR valuation model behind COHR stock’s $1,523 target for free →
Should You Invest in Coherent Corp.?
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Pull up Coherent Corp. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
