Coherent Corp (COHR)
NYSE:COHR
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Coherent Corp
(NYSE:COHR)
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Rating:63Neutral
Price Target:
$270.00
▼(-0.86% Downside)
Action:ReiteratedDate:03/21/26
The score is held back primarily by weak cash generation (negative free cash flow and low cash conversion) despite the earnings recovery. Offsetting this are strong earnings-call demand indicators and guidance (including very strong bookings/visibility) plus a meaningful NVIDIA partnership, while the high P/E limits valuation support. Technically, the trend is constructive but momentum is currently neutral.
Positive Factors
Data Center & Communications Mix
A revenue mix now dominated (>70%) by data center and communications ties Coherent to durable secular growth in AI and hyperscale networking. Strong sequential and YoY growth in this higher‑margin end market supports sustainable demand, recurring design wins, and long‑term revenue upside as network bandwidth needs expand.
Negative Factors
Negative Free Cash Flow
Sustained negative free cash flow and weak cash‑to‑earnings conversion undermine the quality of reported earnings and reduce internal funding for capex. Over months this raises dependence on external capital, increases financing risk during heavy investment cycles, and constrains flexibility for buybacks or dividends.
Read all positive and negative factors
Positive Factors
Negative Factors
Data Center & Communications Mix
A revenue mix now dominated (>70%) by data center and communications ties Coherent to durable secular growth in AI and hyperscale networking. Strong sequential and YoY growth in this higher‑margin end market supports sustainable demand, recurring design wins, and long‑term revenue upside as network bandwidth needs expand.
Read all positive factors
Coherent Corp (COHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.06B
Dividend YieldN/A
Average Volume (3M)8.35M
Price to Earnings (P/E)48.8
Beta (1Y)2.74
Revenue Growth20.80%
EPS GrowthN/A
CountryUS
Employees26,157
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1.29
Shares Outstanding187,481,860
10 Day Avg. Volume11,249,553
30 Day Avg. Volume8,348,670
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 Cap0.90
Enterprise Value/Revenue7.28
Enterprise Value/Gross Profit20.01
Enterprise Value/Ebitda36.57
Forecast
1Y Price Target
$278.75Price Target Upside2.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)5.35
Revenue Forecast (FY)$6.95B
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 Key Performance Indicators (KPIs)
Coherent Corp Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call communicated strong demand, record revenue, robust segment growth (especially data center and communications), accelerating bookings (book-to-bill >4x), meaningful design wins (CPO/OCS), and a rapid six-inch indium phosphide ramp that should be margin accretive. Offsetting risks include persistent industry indium phosphide tightness, elevated external input costs, ongoing high CapEx and OpEx to scale capacity, and a still-soft broader industrial segment. Overall, the positives — large, visible demand and execution on capacity and margin levers — outweigh the operational and market headwinds.Positive Updates
Record Quarterly Revenue
Q2 revenue was a record $1.69 billion, up 7% sequentially and 17% year-over-year (pro forma: +9% sequential, +22% YoY excluding the divested aerospace & defense business). Guidance for Q3 revenue: $1.7B–$1.84B.
Negative Updates
Persistent Indium Phosphide Supply Tightness Industry-Wide
Management does not expect industry supply/demand balance this calendar year or next and anticipates a sustained imbalance; company must continue aggressive capacity ramps to keep pace with demand, implying ongoing capital intensity and execution risk.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Q2 revenue was a record $1.69 billion, up 7% sequentially and 17% year-over-year (pro forma: +9% sequential, +22% YoY excluding the divested aerospace & defense business). Guidance for Q3 revenue: $1.7B–$1.84B.
Read all positive updates
Company Guidance
Coherent’s formal Q3 guidance called for revenue of $1.70–$1.84 billion, non‑GAAP gross margin of 38.5%–40.5%, non‑GAAP operating expenses of $320–$340 million, a non‑GAAP tax rate of 18%–20%, and non‑GAAP EPS of $1.28–$1.48; management said capex will increase sequentially (Q2 capex was $154 million) and that net debt leverage is ~1.7x (below 2.0x). Management also reiterated expectations for continued strong sequential revenue growth in the March and June quarters (double‑digit sequential growth in Data Center), fiscal 2027 revenue growth to exceed fiscal 2026, EPS growth meaningfully faster than revenue growth, and a long‑term gross margin target >42% (Q2 non‑GAAP gross margin was 39%). Key operating metrics supporting the outlook included Q2 record revenue of $1.69 billion (+7% sequential, +17% YoY reported; +9% seq, +22% YoY pro forma), Data Center & Communications >70% of revenue, book‑to‑bill >4x, indium phosphide wafer‑starts at ~80% of the target to double six‑inch capacity by year‑end (six‑inch yields exceed three‑inch and produce >4× chips at <50% cost), OCS backlog and >10 customer engagements with a >$2 billion addressable market, and the Munich divestiture (~$25M average quarterly revenue over the past four quarters) which reduces ~425 employees.Coherent Corp Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.29B | 5.81B | 4.71B | 5.16B | 3.32B | 3.11B |
| Gross Profit | 2.29B | 2.06B | 1.46B | 1.78B | 1.27B | 1.18B |
| EBITDA | 1.25B | 1.11B | 682.94M | 961.67M | 689.84M | 672.19M |
| Net Income | 293.44M | 49.36M | -156.15M | -259.46M | 234.76M | 297.55M |
Balance Sheet | ||||||
| Total Assets | 15.09B | 14.91B | 14.49B | 13.71B | 7.84B | 6.51B |
| Cash, Cash Equivalents and Short-Term Investments | 863.74M | 909.20M | 926.03M | 821.31M | 2.58B | 1.59B |
| Total Debt | 3.55B | 3.89B | 4.30B | 4.49B | 2.44B | 1.53B |
| Total Liabilities | 6.20B | 6.43B | 6.54B | 6.48B | 3.46B | 2.38B |
| Stockholders Equity | 8.54B | 8.13B | 7.57B | 7.23B | 4.38B | 4.13B |
Cash Flow | ||||||
| Free Cash Flow | -103.62M | 192.76M | 198.91M | 197.97M | 99.00M | 428.02M |
| Operating Cash Flow | 397.10M | 633.60M | 545.73M | 634.02M | 413.33M | 574.35M |
| Investing Cash Flow | -84.16M | -414.21M | -350.71M | -5.93B | -320.08M | -172.96M |
| Financing Cash Flow | -563.68M | -451.73M | 758.27M | 3.55B | 862.95M | 675.73M |
Coherent Corp Technical Analysis
Positive
272.33
Price Trends
232.68
Positive
199.62
Positive
150.13
Positive
Market Momentum
7.41
Positive
57.91
Neutral
59.14
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 272.33 is above the 20-day moving average (MA) of 258.83, above the 50-day MA of 232.68, and above the 200-day MA of 150.13, indicating a bullish trend. The MACD of 7.41 indicates Positive momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 59.14 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $25.40B | 23.76 | 16.83% | ― | 0.77% | 0.51% | |
69 Neutral | $29.29B | 31.64 | 58.99% | 0.14% | 13.18% | -38.37% | |
69 Neutral | $15.80B | 36.46 | 11.54% | 0.54% | 8.13% | 780.20% | |
63 Neutral | $51.06B | 48.81 | 3.58% | ― | 20.80% | ― | |
63 Neutral | $15.63B | 43.86 | 7.46% | ― | -0.86% | -75.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $17.05B | 30.16 | 6.90% | 0.43% | -8.96% | -30.29% |
* Technology Sector Average
COHR
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280.93%
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Coherent Corp Corporate Events
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 ...
Business Operations and StrategyFinancial Disclosures
Coherent Corp Delivers Strong Q2 2026 Earnings Growth
Positive
Feb 4, 2026
On February 4, 2026, Coherent Corp. reported its financial results for the second quarter of fiscal 2026, ended December 31, 2025, posting revenue of $1.69 billion, up 17% year over year, or 22% on a pro forma basis excluding the divested aerospac...
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.