Coherent FY2026: revenue $7.12B, up 22.5%, Q4 gross margin 38.5%
Coherent finished fiscal 2026 with accelerating growth, wider margins and a next-quarter guide above what it just delivered — a Bullish setup on the operating numbers. Read it this way: revenue and margin expansion are real and broad, earnings beat on a non-GAAP basis, but cash generation went the wrong way as capital spending more than doubled. This is a growth-at-a-cost story, not yet a self-funding one.
1 · Expected vs. Actual
Free preview belowFull-year GAAP diluted EPS was $4.12, against a loss of $0.52 a year earlier, and non-GAAP EPS was $5.61. In the fourth quarter, GAAP EPS was $1.19 and non-GAAP EPS was $1.74, ahead of the $1.65 consensus estimate. The $1.49 full-year gap between non-GAAP and GAAP earnings comes largely from $193.8 million of share-based compensation and $280.3 million of acquired-intangible amortization.
Full-year revenue was $7.12 billion, up 22.5% from $5.81 billion, and the fourth quarter did the heavy lifting: $2.05 billion, up 33.8% year over year and 13.3% sequentially. Datacenter & Communications supplied $1.62 billion of that quarter, while Industrial contributed $430.5 million. The growth is concentrated in the AI-related part of the business, which is exactly where management says demand is strongest.
Management guided first-quarter fiscal 2027 revenue to $2.20–$2.40 billion and non-GAAP EPS to $1.85–$2.05. Non-GAAP gross margin is guided to 39.5%–41.5%, above the 38.5% GAAP margin just reported, so the company expects profitability to improve rather than just volume to grow. The previous quarter's $1.98 billion guide was beaten with $2.06 billion of actual revenue.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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