COHR

Coherent Corp. reported impressive financial results for the first quarter of fiscal 2026, with revenue reaching $1.58 billion, surpassing expectations due to rising demand from AI-related sectors and communications. The company's adjusted gross margin stood at 38.7%, and it provided optimistic guidance for the December quarter.

The company's recent strategic partnerships and innovation achievements, such as the launch of Axon FP, a groundbreaking femtosecond laser, have contributed to the positive sentiment around the stock.

The company has gained from the AI chip boom, with analysts highlighting its datacom transceivers as enabling the evolving wave of AI scale-out network builds. The firm's internal Indium Phosphide manufacturing capabilities have been noted for their importance in the AI sector.