Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
FY2026 was defined by a landmark strategic relationship with NVIDIA: a multi-year agreement announced March 2, 2026 includes a multi-billion-dollar purchase commitment and a $2B equity investment to fund R&D, capacity and operations. Management attributes the strong revenue growth primarily to continued AI datacenter demand, especially transceivers, and higher communications volumes. Gross margin expanded by more than two percentage points on cost reductions, yield improvements and pricing optimization, while Industrial revenue contracted as the company completed divestitures of its aerospace & defense and Munich businesses. Net income swung sharply positive from the prior year, but operating cash flow fell sharply, a divergence that warrants attention.
Revenue
$7.12B
+22.51% YoY
EPS (Diluted)
$4.12
+892.31% YoY
Audit Opinion: Unqualified opinion on the consolidated financial statements and internal control over financial reporting(Report of Independent Registered Public Accounting Firm)
Source: SEC XBRL
Coherent (COHR) reported FY2026 revenue of $7.12B, up 22.5% year over year. Operating cash flow was $79.51M, down 87.5% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.74 | 1.65 | Beat +5.6% |
| Mar 2026 | 1.41 | 1.43 | Miss -1.1% |
| Dec 2025 | 1.29 | 1.23 | Beat +4.7% |
| Sep 2025 | 1.16 | 1.06 | Beat +9.2% |
2 reported segments · SEC XBRL
Segment revenue totals $7.12B, which is the $7.12B of consolidated revenue on the income statement.
Compiled by AI from 10-K Item 7 of this filing
On March 2, 2026, Coherent entered a non-exclusive multi-year agreement with NVIDIA to advance optics technologies, including a multi-billion-dollar purchase commitment and access rights; separately NVIDIA invested $2B in common stock to fund R&D, capacity and operations.
Source: 10-K Item 7 MD&A
Effective July 1, 2025, the Company realigned its organizational structure into two reportable segments, Datacenter & Communications and Industrial, based on internal management structure and CODM oversight; comparative prior-year figures were recast.
Source: 10-K Item 7 MD&A
Gross margin rose to 37% of revenues from 35%, a 233 basis point improvement, driven by product input cost reductions, improved cycle times, yield gains, pricing optimization and lower amortization of intangibles.
Source: 10-K Item 7 MD&A
The company completed the sale of its aerospace & defense business on September 2, 2025 for approximately $400M, recording a $115M gain, and sold its Munich, Germany division on January 30, 2026, with a $96M loss largely recognized through impairment.
Source: 10-K Item 7 MD&A
Total restructuring charges fell to $63M from $160M, while impairment of assets held-for-sale was $64M versus $85M; these non-operational items continued to affect earnings but at a lower level.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 3 high, 2 medium, 0 low
Two customers each contributed more than 10% of total revenues in fiscal 2026. The company's dependence on a small number of large customers exposes it to delayed, reduced or cancelled orders, price concessions and difficult forecasting, which could significantly harm revenue and profitability.
Source: 10-K Item 1A Risk Factors
A significant portion of recent demand is tied to rapid expansion of AI and data center infrastructure, which may not be sustainable. Emerging technologies like DeepSeek may reduce computational intensity and customer capital constraints could lower infrastructure spending, creating credit and demand risks.
Source: 10-K Item 1A Risk Factors
Coherent is making significant investments to expand production capacity, including U.S. facilities, to meet AI-driven demand. These projects face risks of delays, cost overruns, supply constraints, labor shortages and underutilized capacity if demand weakens, which could impair returns.
Source: 10-K Item 1A Risk Factors
The company relies on difficult-to-manufacture components, rare earth minerals and sole-source suppliers. Disruptions, export controls or quality issues could interrupt production and harm results.
Source: 10-K Item 1A Risk Factors
Products that fail to meet specifications or are defective could impose significant costs, including warranty claims, product liability, customer compensation and reputational damage.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.12 $B | 5.81 $B | +22.51% |
Cost of Revenue $B | 4.45 $B | 3.77 $B | +18.11% |
Net Income $M | 805.00 $M | 49.36 $M | +1530.74% |
EPS (Basic) $ | 4.34 $ | -0.52 $ | +934.62% |
EPS (Diluted) $ | 4.12 $ | -0.52 $ | +892.31% |
R&D Expense $M | 722.95 $M | 581.92 $M | +24.23% |
SG&A Expense $B | 1.04 $B | 0.93 $B | +12.75% |
Answers draw on this SEC filing and the data on this page
COHR delivered strong Q3 FY2026 results with revenue surging 20.5% YoY to $1.81B and net income skyrocketing over 1,100% to $191.4M, though year-to-date operating cash flow collapsed 98% to just $10.1M.
COHR delivered strong Q2 FY2026 results with revenue rising 17.5% YoY to $1.69B and net income surging 41.9% to $146.7M, driven by robust top-line growth while operating cash flow declined sharply on a year-to-date basis.
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