Coherent Corp. (COHR)

Coherent reported first-quarter fiscal 2027 revenue of $2.37 billion on 4 November 2026, up 50 percent from a year earlier 1. Gross margin under US accounting rules was 39.1 percent, and diluted earnings per share were $1.90 1.

The growth came from the Datacenter and Communications segment, whose revenue rose 79 percent to $1.95 billion on demand from AI datacenters 2. Industrial revenue fell 15 percent to $419 million, mainly because two businesses were sold 2.

The company expects second-quarter revenue of $2.55 billion to $2.75 billion and fiscal 2027 pro forma revenue growth above 60 percent 1. It set a new goal of a quarter with adjusted gross margin above 45 percent before the end of calendar 2028 1.

Spending on property, plant and equipment was $776 million in the quarter, and operations used $93 million of cash as inventory rose 2. Total debt obligations were $4.0 billion at 30 September 2026, against $3.2 billion at 30 June 2.

In September 2019 it completed the purchase of Finisar, a maker of subsystems and components for fiber-optic communications 8. Revenue for the year ended June 30, 2020 rose 75 percent to $2,380.1 million, and Finisar supplied $938.4 million of that 8.

The next large step came on 1 July 2022, when the company closed its purchase of Coherent, Inc., a laser and optics maker, and added a Lasers segment 9. It took the name Coherent Corp. on 8 September 2022 9. Fiscal 2023 revenue rose 56 percent to $5,160 million, mostly from Lasers 9.

Fiscal 2024 revenue fell 9 percent to $4,708 million, led by a $270 million drop in electronics from a design change at a significant electronics customer 10. In December 2023 two partners bought into the silicon carbide unit for $500 million each 211.

Fiscal 2025 revenue recovered 23 percent to $5,810 million, as AI datacenter demand lifted Datacenter and Communications revenue 43 percent to $3,755 million 3. Net earnings attributable to the company were only $49 million after $160 million of restructuring charges 3.

Fiscal 2026 brought record revenue of $7,118 million, up 23 percent, and net earnings attributable to the company of $805 million 3. Gross margin widened to 37 percent from 35 percent on lower input costs, better yields and pricing changes 3.

The company sold its aerospace and defense business on 2 September 2025 for about $400 million and its Munich product division on 30 January 2026 3. On 2 March 2026 NVIDIA agreed to invest $2 billion in the company 45.

Datacenter and Communications

This segment made $5,275 million of fiscal 2026 revenue, about 74.1 percent (computed) of the company's $7,118 million, and earned a segment profit of $1,330 million 3. It sells transceivers, the plug-in modules that turn electrical signals into light for fiber links, along with co-packaged optics, optical circuit switches and the lasers inside them 3.

The annual report calls the company a leading supplier of optical transceivers for AI datacenters, in Ethernet, InfiniBand and NVIDIA NVLink designs 3. Its communications side sells coherent transmission parts, optical amplifiers and line systems that link distant datacenters 3.

Industrial

Industrial made $1,844 million of fiscal 2026 revenue, down 10 percent, with a segment profit of $423 million 3. It sells excimer, solid-state and carbon dioxide lasers, laser optics and engineered materials to chip, display, medical and research customers 3.

Plants, people and customers

The company employed 51,478 people at 30 June 2026, of whom 45,775 worked in manufacturing 3. Its largest listed site is in China at 5,850,654 square feet, and the Sherman, Texas indium phosphide plant is 700,000 square feet and owned 3.

Jim Anderson has been chief executive since June 2024, and Sherri Luther is chief financial officer 13. Enrico DiGirolamo has chaired the board since June 2024 6. Two customers each gave more than 10 percent of fiscal 2026 revenue 3.

Rivals and problems

The company names IPG Photonics, Wolfspeed, Lumentum, Corning, MKS Instruments and Honeywell as the peer group in its annual report 3. Its goodwill test for the Lasers unit found fair value only about 8 percent above book value 3.

The annual report lists no legal proceeding it expects to weigh on results 3. Its risk factors point to tariffs and export controls and to a substantial amount of debt 3.

The umbrella, in words

The subsidiary list names legacy brands the company still operates through, among them Finisar, Rofin, DILAS, HIGHYAG, Optoskand and II-VI 7. Silicon Carbide LLC is owned 75 percent by Wide Bandgap Holdings, the company's own unit, and 25 percent by partners 7.

Denso and Mitsubishi Electric each own about 12.5 percent of the silicon carbide unit's Class A units, and CT Crystals LLC is owned 50 percent by the company and 50 percent by a partner 27. The proxy lists Vanguard at 7.1 percent, BlackRock at 6.6 percent and FMR at 5.6 percent of the shares 6.

For the second quarter of fiscal 2027 the company expects revenue of $2.55 billion to $2.75 billion and earnings per share of $2.28 to $2.48 on an adjusted basis 1. It expects its first $3 billion revenue quarter by the end of fiscal 2027 and its first $4 billion quarter in fiscal 2028 1.

Chief executive Jim Anderson said on 4 November 2026 that the company expects fiscal 2027 pro forma revenue growth to exceed 60 percent 1. Chief financial officer Sherri Luther said the margin strength gives confidence to raise its longer-term target 1.

The quarterly report says the company is expanding indium phosphide capacity in Sherman, Texas and in Sweden to meet customer demand and an industry-wide shortage 2. The annual report says it received a preliminary memorandum of terms for $50 million under the CHIPS and Science Act to support the Sherman expansion 3.

The annual meeting is set for 18 November 2026, with votes on four Class Three directors, an advisory vote on pay and the choice of Ernst & Young as auditor 6. On 27 August 2026 the board approved retention awards in performance stock units, with a service requirement through 2030 13.