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Coherent Corp
(NYSE:COHR)
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Rating:56Neutral
Price Target:
$303.00
▲(5.16% Upside)
Action:Reiterated
Date:08/17/26
COHR scores as moderate: the biggest drag is weak recent cash flow and an inconsistent multi-year earnings/revenue profile despite a solid, improving balance sheet. Offsetting this, the earnings call and guidance were notably strong with backlog-supported growth and margin expansion, while technicals are mixed and valuation is expensive (high P/E), limiting upside confidence without continued execution.
Positive Factors
Data-center and communications growth
Coherent is benefiting from durable demand for optical connectivity in AI data centers. Strong segment growth and increasing adoption of photonics can expand its revenue base as networks transition from copper to higher-bandwidth optical solutions.
Negative Factors
Weak cash generation and elevated capital spending
The sharp gap between earnings and cash generation raises concerns about working-capital needs and investment intensity. Sustained high capital spending could limit internally funded growth and increase dependence on strong execution to produce attractive cash returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Data-center and communications growth
Coherent is benefiting from durable demand for optical connectivity in AI data centers. Strong segment growth and increasing adoption of photonics can expand its revenue base as networks transition from copper to higher-bandwidth optical solutions.
Read all positive factors
Coherent Corp Key Performance Indicators (KPIs)
Any
Profit by Segment
Analyzes profitability across different business segments, indicating which areas are most lucrative and where there might be challenges or opportunities for improvement.
Analyzes profitability across different business segments, indicating which areas are most lucrative and where there might be challenges or opportunities for improvement.
Data provided by:
The Fly
The FlyCoherent Corp (COHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.43B
Dividend YieldN/A
Average Volume (3M)4.82M
Price to Earnings (P/E)67.7
Beta (1Y)2.64
Revenue Growth22.51%
EPS GrowthN/A
CountryUS
Employees51,478
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)4.35
Shares Outstanding195,832,240
10 Day Avg. Volume3,992,448
30 Day Avg. Volume4,815,999
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)6.41
Price to Sales (P/S)9.82
P/FCF Ratio-67.85
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$409.67Price Target Upside42.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)9.43
Revenue Forecast (FY)$10.56B
Coherent Corp Business Overview & Revenue Model
Company Description
Coherent, Inc. specializes in advanced laser technologies, offering a comprehensive suite of products that includes lasers, laser-based solutions, and complete systems. These are deployed across a spectrum of uses, from commercial and industrial o...
How the Company Makes Money
Coherent makes money primarily by selling manufactured photonics hardware and systems to commercial and industrial customers, with revenue recognized from product shipments and, where applicable, from long-term or customized system contracts. Key ...
Coherent Corp Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial picture: record revenue and a record quarter, significant margin and EPS expansion, reduced leverage, large backlog and LTAs, aggressive capacity ramps (notably 6-inch Indium Phosphide), and multiple large incremental TAMs (OCS, CPO/NPO, multi-rail). Near-term challenges and risks include Indium Phosphide being a primary supply constraint until ramps complete, a flat industrial segment, elevated CapEx and absolute operating spend, a sequential cash decline, and external market/regulatory uncertainty (speculative import restrictions and competition). Management provided concrete guidance and timelines for product ramps (CPO revenue expected to begin in the December quarter and scale-up CPO in H2 calendar 2027) and reiterated confidence in margin targets, but some margin upside remains dependent on future ramp execution.Positive Updates
Record Annual and Quarterly Revenue
FY26 revenue of $7.12B (first year >$7B), up 23% YoY (28% pro forma). Q4 revenue of $2.05B (record quarter), up 13% sequentially and 34% YoY (14% sequential and 42% YoY on a pro forma basis).
Negative Updates
Primary Supply Constraint — Indium Phosphide
Management identified Indium Phosphide capacity as the primary constraint on growth; revenue ramp depends on successful and timely 6-inch Indium Phosphide expansion and continued yield performance.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual and Quarterly Revenue
FY26 revenue of $7.12B (first year >$7B), up 23% YoY (28% pro forma). Q4 revenue of $2.05B (record quarter), up 13% sequentially and 34% YoY (14% sequential and 42% YoY on a pro forma basis).
Read all positive updates
Company Guidance
For Q1 of fiscal 2027 Coherent guided to revenue of $2.2 billion to $2.4 billion, non‑GAAP gross margin of 39.5%–41.5%, non‑GAAP total operating expenses of $400 million to $420 million, a non‑GAAP tax rate given roughly as ~18%–20% (transcript wording was garbled), and non‑GAAP EPS of $1.85–$2.05; management also said capex is expected to increase sequentially in Q1 and reiterated longer‑term targets including reaching a >$3 billion revenue quarter by the end of fiscal 2027 supported by record backlog and expanding capacity.Coherent Corp Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.12B | 5.81B | 4.71B | 5.16B | 3.32B |
| Gross Profit | 2.67B | 2.06B | 1.46B | 1.78B | 1.27B |
| EBITDA | 1.56B | 1.11B | 700.59M | 613.00M | 689.84M |
| Net Income | 805.00M | 49.36M | -156.15M | -259.46M | 234.76M |
Balance Sheet | |||||
| Total Assets | 18.30B | 14.91B | 14.49B | 13.71B | 7.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.99B | 909.20M | 926.03M | 821.31M | 2.58B |
| Total Debt | 3.54B | 3.89B | 4.30B | 4.49B | 2.44B |
| Total Liabilities | 7.06B | 6.43B | 6.54B | 6.48B | 3.46B |
| Stockholders Equity | 10.90B | 8.13B | 7.57B | 7.23B | 4.38B |
Cash Flow | |||||
| Free Cash Flow | -1.03B | 192.76M | 198.91M | 197.97M | 99.00M |
| Operating Cash Flow | 79.51M | 633.60M | 545.73M | 634.02M | 413.33M |
| Investing Cash Flow | -1.41B | -414.21M | -350.71M | -5.93B | -320.08M |
| Financing Cash Flow | 1.48B | -451.73M | 758.27M | 3.55B | 862.95M |
Coherent Corp Technical Analysis
Neutral
288.14
Price Trends
323.49
Negative
336.75
Negative
272.01
Positive
Market Momentum
-7.08
Positive
46.82
Neutral
23.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHR, the sentiment is Neutral. The current price of 288.14 is below the 20-day moving average (MA) of 310.52, below the 50-day MA of 323.49, and above the 200-day MA of 272.01, indicating a neutral trend. The MACD of -7.08 indicates Positive momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 23.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COHR.
Coherent Corp Risk Analysis
Coherent Corp disclosed 35 risk factors in its most recent earnings report. Coherent Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Coherent Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $32.35B | 38.38 | 62.42% | 0.10% | 17.80% | 55.75% | |
70 Outperform | $17.97B | 35.03 | 8.52% | 0.39% | -29.80% | -23.46% | |
66 Neutral | $13.86B | -126.98 | -1.87% | ― | 5.80% | -140.22% | |
64 Neutral | $18.29B | 41.55 | 12.24% | 0.28% | 16.23% | 65.58% | |
63 Neutral | $40.36B | 43.17 | 18.71% | ― | 12.25% | 14.09% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $56.43B | 67.67 | 8.37% | ― | 22.51% | ― |
* Technology Sector Average
COHR
Coherent Corp
295.39
200.19
210.28%
FLEX
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TRMB
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FTV
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25.36%
Coherent Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
Coherent Corp Posts Record Fiscal 2026 Earnings Performance
Positive
Aug 12, 2026
Coherent Corp. reported record fourth‑quarter and full‑year fiscal 2026 results on August 12, 2026, for the year ended June 30, 2026. Fourth‑quarter revenue reached $2.05 billion, up 34% year over year, with GAAP gross margin of ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.