Coherent Corp. (COHR)
NYSE:COHR
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Coherent Corp
(NYSE:COHR)
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Rating:75Outperform
Price Target:
$428.00
▲(24.05% Upside)
Action:Upgraded
Date:05/09/26
Score is driven by strong technical strength and a highly positive earnings-call outlook (guidance, backlog visibility, and NVIDIA partnership). Offsetting this is only mid-level financial performance due to volatile earnings history and especially weak TTM free cash flow/cash conversion, which raises sustainability and execution-risk concerns.
Positive Factors
Strategic NVIDIA partnership
NVIDIA’s $2B equity investment plus a multiyear purchase commitment provides a deep strategic customer anchor and substantial funding for U.S. manufacturing and R&D. This reduces funding risk for capacity expansion and secures long‑term demand for Coherent’s optics in AI datacenters.
Negative Factors
TTM free cash‑flow weakness
A sharp TTM swing to negative free cash flow and weak cash conversion highlights financing strain from heavy capex, inventory or receivables build. Even with a strong cash balance, persistent cash‑flow weakness would pressure reinvestment flexibility and heighten execution risk during ramps.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic NVIDIA partnership
NVIDIA’s $2B equity investment plus a multiyear purchase commitment provides a deep strategic customer anchor and substantial funding for U.S. manufacturing and R&D. This reduces funding risk for capacity expansion and secures long‑term demand for Coherent’s optics in AI datacenters.
Read all positive factors
Coherent Corp Key Performance Indicators (KPIs)
Coherent Corp (COHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.75B
Dividend YieldN/A
Average Volume (3M)6.11M
Price to Earnings (P/E)119.8
Beta (1Y)2.67
Revenue Growth18.00%
EPS GrowthN/A
CountryUS
Employees26,157
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.29
Shares Outstanding195,639,330
10 Day Avg. Volume5,180,641
30 Day Avg. Volume6,107,217
Financial Highlights & Ratios
PEG Ratio-3.90
Price to Book (P/B)1.70
Price to Sales (P/S)2.38
P/FCF Ratio71.64
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue9.33
Enterprise Value/Gross Profit25.23
Enterprise Value/Ebitda53.80
Forecast
1Y Price Target
$379.75Price Target Upside10.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)5.45
Revenue Forecast (FY)$7.06B
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 Sourc...
How the Company Makes Money
Coherent primarily makes money by selling engineered photonics products—lasers, laser subsystems/systems, and optical components/modules—to OEMs and end customers, with revenue recognized from product shipments and, where applicable, longer-cycle ...
Coherent Corp Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call was decisively positive: the company reported record revenue, accelerating sequential and year-over-year growth, meaningful gross margin expansion and a large, strengthening backlog. Material strategic achievements include a $2B NVIDIA investment and multiyear CPO supply agreement, rapid progress on 6-inch indium phosphide capacity (on track to double capacity early), and strong Datacenter & Communications growth (driving ~75% of revenue). Near-term challenges include industrial softness, higher R&D/opex as the company invests for scale, a multi-month lag between device production and shipped revenue, and typical execution risks as new production sites and product ramps scale. Overall, the highlights substantially outweigh the lowlights, supporting an optimistic outlook but with acknowledged execution and timing risks on capacity and new-product ramps.Positive Updates
Record Revenue and Accelerating Growth
Q3 revenue of $1.8B (record) — +7% sequential and +21% year-over-year on a reported basis; pro forma revenue growth of +9% sequential and +27% year-over-year. Company guides Q4 revenue between $1.91B and $2.05B and expects fiscal 2027 growth rate to exceed fiscal 2026.
Negative Updates
Industrial Segment Softness
Industrial segment revenue declined modestly sequentially and year-over-year due to continued softness in parts of the broader industrial market. Industrial is currently a smaller contributor to growth; thermal and other industrial-derived products expected to ramp later (H2 2027).
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue and Accelerating Growth
Q3 revenue of $1.8B (record) — +7% sequential and +21% year-over-year on a reported basis; pro forma revenue growth of +9% sequential and +27% year-over-year. Company guides Q4 revenue between $1.91B and $2.05B and expects fiscal 2027 growth rate to exceed fiscal 2026.
Read all positive updates
Company Guidance
Coherent guided Q4 fiscal 2026 revenue of $1.91–$2.05 billion (implying roughly 6%–14% sequential growth from Q3’s $1.80B), non‑GAAP gross margin of 39%–41% (Q3: 39.6%), non‑GAAP operating expenses of $360–$380 million (Q3: $348M), a non‑GAAP tax rate of 18%–20%, and non‑GAAP EPS of $1.52–$1.72 (Q3: $1.41); management also said capital expenditures will increase sequentially from Q3’s $290M to fund rapid capacity expansion, highlighted a $3.0B cash balance and 0.5x debt leverage, and reiterated that fiscal 2027 growth should exceed fiscal 2026 as indium phosphide capacity is on track to double by year‑end (now one quarter earlier) and to more than double again by end of 2027.Coherent Corp Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.60B | 5.81B | 4.71B | 5.16B | 3.32B | 3.11B |
| Gross Profit | 2.44B | 2.06B | 1.46B | 1.78B | 1.27B | 1.18B |
| EBITDA | 1.15B | 1.11B | 682.94M | 961.67M | 689.84M | 672.19M |
| Net Income | 469.03M | 49.36M | -156.15M | -259.46M | 234.76M | 297.55M |
Balance Sheet | ||||||
| Total Assets | 17.29B | 14.91B | 14.49B | 13.71B | 7.84B | 6.51B |
| Cash, Cash Equivalents and Short-Term Investments | 2.42B | 909.20M | 926.03M | 821.31M | 2.58B | 1.59B |
| Total Debt | 3.43B | 3.89B | 4.30B | 4.49B | 2.44B | 1.53B |
| Total Liabilities | 6.27B | 6.43B | 6.54B | 6.48B | 3.46B | 2.38B |
| Stockholders Equity | 10.68B | 8.13B | 7.57B | 7.23B | 4.38B | 4.13B |
Cash Flow | ||||||
| Free Cash Flow | -538.24M | 192.76M | 198.91M | 197.97M | 99.00M | 428.02M |
| Operating Cash Flow | 140.34M | 633.60M | 545.73M | 634.02M | 413.33M | 574.35M |
| Investing Cash Flow | -1.02B | -414.21M | -350.71M | -5.93B | -320.08M | -172.96M |
| Financing Cash Flow | 1.41B | -451.73M | 758.27M | 3.55B | 862.95M | 675.73M |
Coherent Corp Technical Analysis
Positive
345.02
Price Trends
319.98
Positive
273.13
Positive
203.17
Positive
Market Momentum
15.23
Positive
52.91
Neutral
56.92
Neutral
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 345.02 is below the 20-day moving average (MA) of 363.48, above the 50-day MA of 319.98, and above the 200-day MA of 203.17, indicating a neutral trend. The MACD of 15.23 indicates Positive momentum. The RSI at 52.91 is Neutral, neither overbought nor oversold. The STOCH value of 56.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHR.
Coherent Corp Risk Analysis
Coherent Corp disclosed 36 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $73.75B | 119.84 | 5.26% | ― | 18.00% | ― | |
73 Outperform | $53.07B | 64.08 | 17.26% | ― | 8.14% | 10.64% | |
70 Neutral | $12.80B | 29.00 | 7.95% | ― | 3.25% | -68.85% | |
69 Neutral | $38.37B | 47.99 | 58.99% | 0.14% | 19.00% | 78.70% | |
69 Neutral | $21.84B | 66.84 | 12.24% | 0.54% | 11.44% | 44.67% | |
63 Neutral | $18.04B | 33.21 | 7.39% | 0.43% | -23.36% | -26.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Coherent Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
Coherent Corp Delivers Strong Q3 Results on AI Demand
Positive
May 6, 2026
On May 6, 2026, Coherent Corp. reported strong results for its third quarter of fiscal 2026 ended March 31, 2026, with revenue rising 21% year over year to $1.81 billion and pro forma revenue up 27%. GAAP gross margin improved to 37.7% and non-GAA...
Business Operations and StrategyExecutive/Board Changes
Coherent Announces Executive Transition and Strategic Advisory Role
Neutral
Apr 28, 2026
On April 27, 2026, Coherent Corp. announced that Giovanni Barbarossa will transition from his role as Chief Strategy Officer, effective that day, and plans to retire in September 2026. During the transition period from the effective date until his...
Business Operations and StrategyPrivate Placements and Financing
Coherent, NVIDIA Forge Strategic AI Optics Partnership
Positive
Mar 2, 2026
On March 2, 2026, Coherent Corp. entered into a Securities Purchase Agreement with NVIDIA Corporation and immediately completed a private placement of 7,788,161 common shares at $256.80 each, raising $2 billion in cash. The deal, structured under ...
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.