Coherent Corp (COHR)
NYSE:COHR
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Coherent Corp
(NYSE:COHR)
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Rating:67Neutral
Price Target:
$331.00
▼(-4.06% Downside)
Action:ReiteratedDate:04/19/26
COHR’s score is driven by strong demand visibility and execution signals (earnings call guidance/bookings and the NVIDIA partnership) plus a powerful technical uptrend. These positives are tempered by weak cash generation (negative TTM free cash flow) and a high valuation that leaves less room for execution missteps.
Positive Factors
Strong Data Center & Communications demand
Sustained leadership in data-center optics gives multi-quarter revenue visibility and recurring customer engagement. A book-to-bill >4x with multi-year bookings smooths revenue trajectories, supports capacity planning, and reduces sales volatility versus one-off industrial cycles.
Negative Factors
Negative free cash flow and weak cash conversion
Persistently negative FCF and poor cash-to-earnings conversion reduce financial flexibility to fund capex, R&D, or cyclical shortfalls. If sustained, it increases reliance on external funding and raises execution risk for capacity ramps and margin-improvement initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Data Center & Communications demand
Sustained leadership in data-center optics gives multi-quarter revenue visibility and recurring customer engagement. A book-to-bill >4x with multi-year bookings smooths revenue trajectories, supports capacity planning, and reduces sales volatility versus one-off industrial cycles.
Read all positive factors
Coherent Corp (COHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$64.42B
Dividend YieldN/A
Average Volume (3M)7.71M
Price to Earnings (P/E)48.8
Beta (1Y)2.69
Revenue Growth18.63%
EPS GrowthN/A
CountryUS
Employees26,157
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1.17
Shares Outstanding195,270,020
10 Day Avg. Volume5,576,076
30 Day Avg. Volume7,711,948
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 Cap0.85
Enterprise Value/Revenue8.74
Enterprise Value/Gross Profit24.01
Enterprise Value/Ebitda43.90
Forecast
1Y Price Target
$359.73Price Target Upside4.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)5.37
Revenue Forecast (FY)$6.98B
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 06, 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
345.02
Price Trends
257.53
Positive
222.40
Positive
166.63
Positive
Market Momentum
20.81
Negative
72.56
Negative
93.15
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 345.02 is above the 20-day moving average (MA) of 274.40, above the 50-day MA of 257.53, and above the 200-day MA of 166.63, indicating a bullish trend. The MACD of 20.81 indicates Negative momentum. The RSI at 72.56 is Negative, neither overbought nor oversold. The STOCH value of 93.15 is Negative, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $33.77B | 23.76 | 16.83% | ― | 4.89% | -9.65% | |
69 Neutral | $35.96B | 31.64 | 58.99% | 0.14% | 19.00% | 78.70% | |
69 Neutral | $19.63B | 25.13 | 11.54% | 0.54% | 9.59% | 55.93% | |
68 Neutral | $18.32B | 31.82 | 6.90% | 0.43% | -23.36% | -26.77% | |
67 Neutral | $64.42B | 48.81 | 3.58% | ― | 18.63% | ― | |
63 Neutral | $15.90B | 29.69 | 7.46% | ― | -2.61% | -71.05% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
COHR
Coherent Corp
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372.69%
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Coherent Corp Corporate Events
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.