Coherent Corp (COHR) AI Stock Analysis

• Market Cap: $25.81B
• Dividend Yield: N/A
• Average Volume (3M): 4.66M
• Price to Earnings (P/E): 236.7
• Beta (1Y): 2.89
• Revenue Growth: 20.80%
• EPS Growth: N/A
• Country: US
• Employees: 26,157
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.16
• Shares Outstanding: 157,153,610
• 10 Day Avg. Volume: 4,145,947
• 30 Day Avg. Volume: 4,657,869
• PEG Ratio: -3.90
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 71.64
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 4.31
• Enterprise Value/Gross Profit: 11.96
• Enterprise Value/Ebitda: 21.55
• 1Y Price Target: $166.91
• Price Target Upside: 1.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 5.07
• Revenue Forecast (FY): $6.68B

• Rating: 66 Neutral
• Price Target: $178.00 ▲(8.36% Upside)

Coherent Corp's stock score reflects a mix of strong technical momentum and positive earnings call highlights, offset by challenges in financial performance and high valuation concerns. The company's strategic focus on growth in the Datacenter and Communications segment is promising, but profitability and cash flow issues need addressing. The high P/E ratio suggests caution due to potential overvaluation.

Positive Factors

Revenue Growth

Strong revenue growth reflects Coherent's expanding market reach and successful product adoption, particularly in AI data centers.

Debt Reduction

Reducing debt enhances financial flexibility and lowers capital costs, supporting long-term financial stability and investment capacity.

Production Capacity Expansion

Expanding production capacity supports future growth and meets increasing demand, particularly in the data center segment.

Negative Factors

Profitability Challenges

Low profitability margins indicate operational inefficiencies, which could hinder long-term financial health if not addressed.

Cash Flow Issues

Negative cash flow growth suggests potential liquidity issues, impacting the company's ability to invest in growth opportunities.

Supply Constraints

Supply constraints limit growth potential in key segments, potentially affecting revenue and market position if not resolved.

Coherent Corp Business Overview & Revenue Model

Company Description

Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a range of commercial, industrial, and scientific research applications. It operates in two segments, Original Equipment Manufacturers (OEM) Laser Sources and Industrial Lasers & Systems. The company designs, manufactures, markets, and services lasers, laser tools, precision optics, and related accessories; and laser measurement and control products. Its products are used for applications in microelectronics, materials processing, OEM components and instrumentation, and scientific research and government programs. The company markets its products through a direct sales force in the United States, as well as through direct sales personnel and independent representatives internationally. Coherent, Inc. was founded in 1966 and is headquartered in Santa Clara, California. As of July 1, 2022, Coherent, Inc. operates as a subsidiary of II-VI Incorporated.

How the Company Makes Money

Coherent Corp generates revenue primarily through the sale of laser systems and components, which are critical in various applications within industrial, scientific, and medical sectors. Key revenue streams include the manufacture and sale of laser products, optics, and related accessories. The company also benefits from recurring revenue through service contracts and maintenance agreements for its systems. Significant partnerships with major technology companies enhance its market reach and contribute to its earnings, as these collaborations often lead to joint product development and access to new markets. Additionally, Coherent Corp invests in research and development to drive innovation, which helps maintain its competitive edge and supports long-term revenue growth.

Coherent Corp Financial Statement Overview

Summary

Coherent Corp demonstrates growth potential with a positive revenue trajectory but faces challenges in profitability and cash flow management. The balance sheet is stable with a balanced leverage position, yet there is room for enhancing returns on equity. The company should focus on improving profitability and cash flow conversion to strengthen its financial health.

Income Statement

Coherent Corp shows a moderate revenue growth rate of 4.01% TTM, indicating a positive trend. However, the net profit margin is low at 0.85% TTM, suggesting limited profitability. The gross profit margin is stable at 35.17% TTM, but the EBIT margin of 4.30% TTM reflects operational challenges. Overall, the income statement indicates growth potential but highlights profitability concerns.

Balance Sheet

The company's debt-to-equity ratio of 0.48 TTM indicates a balanced leverage position, which is a positive sign. However, the return on equity is low at 0.68% TTM, suggesting inefficiencies in generating returns for shareholders. The equity ratio of 39.65% TTM shows a strong equity base, providing stability. The balance sheet reflects a stable financial position with room for improving shareholder returns.

Cash Flow

Coherent Corp's free cash flow growth rate is negative, indicating cash flow challenges. The operating cash flow to net income ratio of 0.63 TTM suggests moderate cash generation relative to net income. The free cash flow to net income ratio of 0.34 TTM highlights limited cash flow conversion. Overall, the cash flow statement reveals potential liquidity issues and the need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.04B	5.81B	4.71B	5.16B	3.32B	3.11B
Gross Profit	2.18B	2.06B	1.46B	1.78B	1.27B	1.18B
EBITDA	1.21B	1.11B	682.94M	961.67M	689.84M	672.19M
Net Income	249.83M	49.36M	-156.15M	-259.46M	234.76M	297.55M
Balance Sheet
Total Assets	14.70B	14.91B	14.49B	13.71B	7.84B	6.51B
Cash, Cash Equivalents and Short-Term Investments	852.78M	909.20M	926.03M	821.31M	2.58B	1.59B
Total Debt	3.51B	3.89B	4.30B	4.49B	2.44B	1.53B
Total Liabilities	6.01B	6.43B	6.54B	6.48B	3.46B	2.38B
Stockholders Equity	8.34B	8.13B	7.57B	7.23B	4.38B	4.13B
Cash Flow
Free Cash Flow	73.78M	192.76M	198.91M	197.97M	99.00M	428.02M
Operating Cash Flow	526.58M	633.60M	545.73M	634.02M	413.33M	574.35M
Investing Cash Flow	-51.68M	-414.21M	-350.71M	-5.93B	-320.08M	-172.96M
Financing Cash Flow	-747.55M	-451.73M	758.27M	3.55B	862.95M	675.73M

Coherent Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHR, the sentiment is Positive. The current price of 164.26 is above the 20-day moving average (MA) of 145.80, above the 50-day MA of 128.37, and above the 200-day MA of 93.60, indicating a bullish trend. The MACD of 6.92 indicates Negative momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHR.

Coherent Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRMB	73 Outperform	$19.37B	55.37	6.13%	―	-0.86%	-75.37%
FTV	72 Outperform	$16.99B	30.54	7.79%	0.45%	-8.96%	-30.29%
MKSI	69 Neutral	$10.50B	38.03	11.12%	0.56%	8.13%	780.20%
COHR	66 Neutral	$25.81B	236.72	3.08%	―	20.80%	―
FLEX	66 Neutral	$21.86B	26.09	17.45%	―	0.77%	0.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	61 Neutral	$22.51B	35.57	40.43%	0.15%	3.18%	-46.01%

Coherent Corp Corporate Events

Coherent Corp. Earnings Call Highlights Robust Growth

The recent earnings call for Coherent Corp. painted a picture of strong financial performance, with notable growth in revenue and profitability. The company has seen robust demand in its Datacenter and Communications segment, which has been a significant driver of its success. While there are challenges, such as supply constraints and a cautious demand outlook in the Industrial segment, the overall sentiment was positive, highlighting achievements in debt reduction and production capacity expansion.

Coherent Corp. Reports Strong Q1 Fiscal 2026 Results

Coherent Corp., a global leader in photonics, specializes in providing advanced technology solutions for datacenters, communications, and industrial markets, leveraging its broad technology stack and global reach to drive innovation.

Coherent Corp Reports Strong Q1 2026 Financial Results

On November 5, 2025, Coherent Corp reported its first quarter fiscal 2026 results, showing a revenue of $1.58 billion, a 17% year-over-year increase, and a GAAP gross margin of 36.6%. The company attributed its 19% pro forma revenue growth to strong demand from AI-related datacenters and communications. Coherent also paid down $400 million in debt and refinanced its debt to reduce interest expenses, indicating a strengthening financial position.

The most recent analyst rating on (COHR) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Coherent Corp stock, see the COHR Stock Forecast page.

Coherent Corp Amends Credit Agreement with JPMorgan

On September 26, 2025, Coherent Corp. entered into significant amendments to its Credit Agreement with JPMorgan Chase Bank and other lenders. These amendments included refinancing existing revolving credit commitments and obtaining additional senior secured incremental revolving credit commitments, increasing the total facility to $700 million. The company also secured a new tranche of senior secured incremental term A loans amounting to $1.25 billion, which were used to repay existing loans and for general corporate purposes. Additionally, Amendment No. 5 replaced the outstanding term B-2 loans with new term B-3 loans, maintaining similar terms but with adjusted interest rates.

The most recent analyst rating on (COHR) stock is a Buy with a $127.00 price target. To see the full list of analyst forecasts on Coherent Corp stock, see the COHR Stock Forecast page.

Coherent Corp’s Earnings Call: Record Growth and Strategic Moves

Coherent Corp’s recent earnings call painted a picture of robust growth and strategic advancements, tempered by some challenges in the industrial markets and foreign exchange impacts. The company reported strong revenue growth, driven by its data center and communications business, alongside successful debt reduction and new product launches. However, concerns were raised about the industrial markets and foreign exchange effects on gross margins.

Coherent Corp.’s Expansion Heightens Risk of Product Failures and Financial Setbacks

Coherent Corp. faces significant business risks due to the potential for products that fail to meet specifications, are defective, or are incompatible with end uses. Such issues can lead to substantial costs, including customer compensation, decreased revenue, and reputational damage. The company’s recent diversification and expansion of product offerings may increase the likelihood of these risks. Consequently, Coherent Corp.’s financial condition and operational results could be materially adversely affected.

Coherent Corp. Reports Strong Fiscal 2025 Results

Coherent Corp. is a global leader in the photonics industry, specializing in innovative technologies for datacenters, communications, and industrial markets. With a strong presence in over 20 countries, Coherent is known for its extensive technology stack and robust supply chain resilience.

Coherent Corp Reports Record Revenue for FY 2025

On August 13, 2025, Coherent Corp. reported its financial results for the fourth quarter and full fiscal year 2025, ending June 30, 2025. The company achieved a record annual revenue of $5.81 billion, marking a 23% year-over-year increase, and improved its non-GAAP gross margin to 37.9%. Despite a GAAP net loss, the non-GAAP earnings per share showed significant improvement. The company also announced plans to sell its Aerospace and Defense business, focusing on long-term growth opportunities.

The most recent analyst rating on (COHR) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Coherent Corp stock, see the COHR Stock Forecast page.