Coherent 2026 Q1 Earnings Record Net Income Surges 805.8%

Coherent (COHR) delivered a remarkable turnaround in Q1 2026, surpassing expectations with record net income and strong revenue growth. The results align with management’s guidance, reflecting robust demand in datacenter and communications segments.

Revenue

, driven by strong performance across its business lines. The Datacenter & , , . This segmental performance underscores the company’s strategic focus on high-growth markets.

Earnings/Net Income

, . , . This marks Coherent’s highest Q1 net income in over two decades, signaling a pivotal shift in its financial trajectory.

Price Action

Post-earnings, Coherent’s stock exhibited mixed short-term performance. . .

CEO Commentary

CEO emphasized 19% pro forma revenue growth, attributing success to and capacity expansion. He reiterated confidence in sustained growth, aligning with the company’s strategic investments in advanced optical technologies.

Guidance

For Q2 2026, , . The guidance assumes continued strength in datacenter markets and stable operating expenses, excluding restructuring costs.

Additional News

1. Aerospace & Defense Divestiture: Coherent finalized the sale of its Aerospace & , using proceeds to reduce debt and enhance financial flexibility.

2. Apple Partnership Expansion: The company secured a multiyear VCSEL supply agreement with Apple, set to commence in H2 2026, expanding its U.S. manufacturing footprint.

3. Next-Gen Fiber Launch: Coherent introduced its next-generation , targeting high-performance laser markets and positioning for margin growth.

The revised report reflects Coherent’s strategic alignment with AI infrastructure trends, though investors must weigh risks like margin pressures from Asian competitors. The stock’s elevated valuation metrics and insider selling activity warrant cautious optimism.