# Coherent (COHR)

Sector: Optical networking components and lasers

| Field | Value |
|---|---|
| Price | $234.51 |
| Market cap | $46B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-12 |
| Next earnings | 2027-02-03 (estimate) |

Analysts: Bullish

Picks: Research only

Discount category: Close to intrinsic value

## In short

The market prices Coherent as a fast grower that depends on AI data center orders, and the first $3 billion quarter with gross margin gains toward its new target can lift its value.

## Themes and gap

- Themes: AI supplier (ai-supplier), High debt (leverage)
- Gap type: Can close (closable)
- Why: The Q2 fiscal 2027 report in February 2027 and the first $3 billion revenue quarter by June 2027 give dated checks.

## About

Coherent Corp. (Coherent) makes photonics products: lasers, optical components and the transceivers that move data through fiber. It has two segments. Datacenter & Communications sells optical transceivers and components for AI data centers, telecom networks and data center interconnect. Industrial sells lasers and materials. Revenue was $7,118 million in fiscal 2026 (the year to June 30, 2026) and $2,370 million in Q1 fiscal 2027 (the quarter to September 30, 2026), up 50%. Coherent sold its aerospace and defense business on September 2, 2025 and a German materials processing tools division on January 30, 2026. On March 2, 2026, NVIDIA bought $2 billion of new Coherent shares at $256.80 and signed a multi-year capacity agreement. Jim Anderson is Chief Executive Officer. Coherent is based in Saxonburg, Pennsylvania. The pick is the common stock on the NYSE (COHR), in US dollars.

## Thesis

The market prices Coherent as a fast grower whose results depend on AI data center orders that large customers can change quickly. Revenue rose 50% in Q1 fiscal 2027, and Coherent expects fiscal 2027 pro forma revenue growth above 60%. Non-GAAP gross margin was 40.6%, and the company now targets above 45% before the end of calendar 2028. Capacity is the limit. Inventories rose to $3,341 million from $2,581 million and total debt to $4,001 million from $3,222 million in one quarter, as Coherent builds supply, and the NVIDIA agreement may need more equipment and working capital through 2030. For the price to rise, Coherent must reach its first $3 billion revenue quarter by the end of fiscal 2027 and a $4 billion quarter in fiscal 2028, lift gross margin as planned and turn the growth into cash. The Q2 fiscal 2027 report in February 2027 is the next test, with an outlook of $2.55 billion to $2.75 billion in revenue. If the ramp holds, the gap can close within about two years.

## Checkpoints

- Feb 3, 2027 (estimate): Q2 fiscal 2027 results: revenue and EPS. Status: Pending. Watch: Revenue of $2.55 billion or more and non-GAAP EPS of $2.28 or more pass; less fails.
- Aug 2027 (estimate): Q4 fiscal 2027 results: first $3 billion quarter. Status: Pending. Watch: Quarterly revenue of $3 billion or more by the end of June 2027 passes; less fails.

## Balance sheet

- Cash: $1.8B
- Debt: $4.0B
- Net debt: $2.2B

At September 30, 2026, Coherent had cash and cash equivalents of $1,552.9 million and short-term investments of $200.0 million. Total debt was $4,001 million, so net debt was about $2.25 billion. The debt includes a term A loan of $1,250 million from the September 2025 amendment, term B-3 loans that mature in July 2029, 5.000% senior notes due 2029 and local credit lines. The revolving credit facility is $700 million and matures in September 2030 at the latest. At June 30, 2026, total debt was $3,222 million. Inventories were $3,341.4 million, against $2,581.0 million. Coherent had 196,958,669 shares outstanding at November 2, 2026. All amounts are in US dollars.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/820318/000082031826000023/iivi-20260930.htm
- https://www.sec.gov/Archives/edgar/data/820318/000119312526447200/d176836dex991.htm

## Dividends

Coherent does not pay a dividend.

Source: company filings and market data, read on 2026-11-13.

## Recent events

- 2026-11-04: Coherent reported Q1 fiscal 2027 results. Revenue was $2,370 million, up 50% (56% pro forma). GAAP gross margin was 39.1%, non-GAAP gross margin 40.6%, GAAP EPS $1.90 and non-GAAP EPS $2.09, against $1.16 a year earlier. The Q2 outlook is revenue of $2.55 billion to $2.75 billion and non-GAAP EPS of $2.28 to $2.48.
- 2026-11-04: Coherent set a new target of a quarter with non-GAAP gross margin above 45% before the end of calendar 2028. It expects its first $3 billion revenue quarter by the end of fiscal 2027 and its first $4 billion quarter in fiscal 2028.
- 2026-08-12: Coherent reported fiscal 2026 results. Revenue was $7,118 million, up 22.5%, and non-GAAP EPS was $5.61, against $3.53. A foreign subsidiary also signed an unsecured credit facility of about $950 million, which had $598 million drawn at September 30, 2026.
- 2026-03-02: NVIDIA bought 7,788,161 new Coherent shares at $256.80, for $2 billion. Coherent and NVIDIA also signed a multi-year capacity agreement that may need more investment in equipment, labor and working capital through 2030. NVIDIA's shares had a six-month lock-up.
- 2026-01-30: Coherent sold its materials processing tools division in Munich, Germany, with a loss of $96 million in total. It sold its aerospace and defense business on September 2, 2025 for about $400 million.

## Latest news and filings

- Last earnings: 2026-11-04 (8-K: https://www.sec.gov/Archives/edgar/data/820318/000119312526447200/)
- Next earnings: 2027-02-03 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-11-04 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | iivi-20260930 | https://www.sec.gov/Archives/edgar/data/820318/000082031826000023/iivi-20260930.htm |
| 2026-11-04 | 8-K | Earnings release and Investor disclosure |  |  | https://www.sec.gov/Archives/edgar/data/820318/000119312526447200/ |
| 2026-08-31 | 8-K | Change of directors or officers and Other company news |  |  | https://www.sec.gov/Archives/edgar/data/820318/000119312526375462/d110649d8k.htm |
| 2026-08-14 | 10-K | Annual report for the period ended Jun 30, 2026 | 2026-06-30 | iivi-20260630 | https://www.sec.gov/Archives/edgar/data/820318/000082031826000020/iivi-20260630.htm |
| 2026-08-12 | 8-K | Earnings release and Investor disclosure |  |  | https://www.sec.gov/Archives/edgar/data/820318/000119312526346860/ |
| 2026-05-06 | 8-K | Earnings release and Investor disclosure |  |  | https://www.sec.gov/Archives/edgar/data/820318/000119312526208972/ |
| 2026-05-06 | 10-Q | Quarterly report for the period ended Mar 31, 2026 | 2026-03-31 | iivi-20260331 | https://www.sec.gov/Archives/edgar/data/820318/000082031826000013/iivi-20260331.htm |
| 2026-04-28 | 8-K | Change of directors or officers |  |  | https://www.sec.gov/Archives/edgar/data/820318/000119312526187297/d107137d8k.htm |
| 2026-03-02 | 8-K | Investor disclosure |  |  | https://www.sec.gov/Archives/edgar/data/820318/000119312526084366/d42735d8k.htm |
| 2026-02-04 | 10-Q | Quarterly report for the period ended Dec 31, 2025 | 2025-12-31 | iivi-20251231 | https://www.sec.gov/Archives/edgar/data/820318/000082031826000006/iivi-20251231.htm |

Every filing on SEC EDGAR (CIK 820318): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000820318&type=&dateb=&owner=include&count=40

## Risks

- High: Demand depends on AI data centers. Datacenter & Communications revenue rose 79% in Q1 fiscal 2027. A pause in orders from a few large customers would hit sales, and the NVIDIA agreement could raise customer concentration (10-Q).
- Medium: Capacity needs cash. Inventories were $3,341 million and receivables $1,604 million at September 30, 2026. The NVIDIA agreement may require material future cash for equipment, labor and working capital.
- Medium: Debt grew. Total debt was $4,001 million at September 30, 2026 against $3,222 million at June 30, 2026, with new unsecured credit lines of $205 million and $598 million drawn at foreign subsidiaries. The term B loans fall due in July 2029.
- Medium: Margins depend on yields and prices. The gross margin gain came from lower input costs, better manufacturing efficiency, higher yields and pricing optimization. A slip in any of them would hurt the plan for above 45%.
- Low: The Industrial segment is shrinking. Its revenue fell 15% to $419 million in Q1 fiscal 2027 after two sales.

## Links

- Page: https://picks.utilarium.app/company/COHR/
- History of changes: https://picks.utilarium.app/company/COHR/history/
- JSON with full history: https://picks.utilarium.app/data/company/COHR.json

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