Coherent Corp. (COHR)
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
$281.86+6.60%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
QuarterlyIQ Insights · COHR
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks COHR against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated neutral grew net income 55% of the time over the next year (vs 56% for the rest of the cohort, n=8445).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 75% of the last 8 guided quarters · 4.2% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue to grow and capitalize on AI datacenter and communications demand with expanded production capacity and new growth platforms.
Stated as a priority in 5 of last 5 quarters. Revenue grew from $1.58B in 2026-Q1 to $2.05B in 2026-Q4, with Datacenter & Communications segment revenue increasing from $1.09B in 2025-Q3 to $1.36B in 2026-Q1. Management consistently emphasizes expanding production capacity to meet accelerating AI datacenter demand, indicating delivery on this growth priority.
“CEO: 'As AI datacenter architectures increasingly transition from copper to optical connectivity, we believe Coherent's broad photonic technology portfolio and manufacturing scale uniquely position u…”
“CEO: 'As AI datacenter infrastructure continues to scale, we are rapidly expanding capacity to meet demand.'”
“CEO: 'Strong datacenter and communications demand and our continued production capacity expansion along with improving demand in our Industrial segment.'”
“CEO: 'Revenue growth driven by strong demand from AI-related datacenters and communications. We expect continued strong growth throughout this fiscal year.'”
“CEO: 'We believe we are well positioned to continue to drive strong revenue and profit growth over the long-term given our exposure to key growth drivers such as AI datacenters.'”
Focus on operational execution to drive gross margin expansion alongside revenue growth.
Stated as a priority in 5 of last 5 quarters. Non-GAAP gross margin increased from 38.7% in 2026-Q1 to 40.2% in 2026-Q4, and GAAP gross margin rose from 36.6% to 38.5% over the same period. CFO consistently highlights gross margin expansion as a key operational achievement, indicating delivery on this priority.
Sustain strong revenue growth across segments, leveraging market demand and product innovation.
Stated as a priority in 5 of last 5 quarters. Revenue increased from $1.35B in 2025-Q1 to $2.05B in 2026-Q4, reflecting sustained strong growth. CEO consistently emphasizes record revenue and accelerating growth, indicating delivery on this priority.
Maintain tax rate within guided non-GAAP range to support financial predictability.
Stated as a priority in 5 of last 5 quarters. Management consistently guides tax rate between 18% and 22% on a non-GAAP basis. This recurring guidance indicates ongoing management focus on maintaining tax rate predictability.
Prioritize capital investments to expand manufacturing capacity while managing debt and interest expense.
Stated as a priority in 5 of last 5 quarters. Management emphasizes disciplined capital allocation prioritizing capacity expansion while reducing debt. Debt repayments of approximately $400 million in 2026-Q1 and $437 million in fiscal 2025 demonstrate delivery on debt reduction focus alongside capital investments.
Over the trailing year it converted 89.53x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 50% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity, long-term interest rates (low R² over the window).
14 material management or governance events in the past 24 months, led by executive changes. Historically, Information Technology names rated neutral grew net income 60% of the time over the next year (vs 57% for the rest of the cohort, n=3673).
Not investment advice. As of 2026-09-04.
“CFO: 'Strong operational execution drove meaningful gross margin expansion.'”
“CFO: 'Significant revenue growth together with gross margin expansion drove a year-over-year increase in our GAAP and non-GAAP EPS.'”
“CFO: 'Significant revenue growth together with gross margin expansion drove a year-over-year increase in our GAAP and non-GAAP EPS.'”
“CFO: 'Revenue growth and gross margin expansion drove a year-over-year increase in our GAAP and non-GAAP EPS.'”
“CFO: 'In fiscal 2025, we achieved gross margin expansion of 358 basis points on a year-over-year basis.'”
“CEO: 'Fiscal 2026 was an outstanding year for Coherent, with record revenue.'”
“CEO: 'We delivered another quarter of strong financial performance, with accelerating revenue growth.'”
“CEO: 'We delivered strong year-over-year revenue growth in the December quarter.'”
“CEO: 'Revenue growth of 19% year-over-year in the September quarter on a pro forma basis.'”
“CEO: 'We delivered a strong fiscal 2025 with revenue growth of 23%.'”
“Tax rate for the first quarter of fiscal 2027 is expected to be between 18% and 20% on a non-GAAP basis.”
“Tax rate for the fourth quarter of fiscal 2026 is expected to be between 18% and 20% on a non-GAAP basis.”
“Tax rate for the third quarter of fiscal 2026 is expected to be between 18% and 20% on a non-GAAP basis.”
“Tax rate for the second quarter of fiscal 2026 is expected to be between 18% and 20% on a non-GAAP basis.”
“Tax rate for the first quarter of fiscal 2026 is expected to be between 18% and 22% on a non-GAAP basis.”
“CFO: 'We remain disciplined in our capital allocation, prioritizing investments to expand manufacturing capacity.'”
“CFO: 'We continue to ramp our capital investment to drive increased capacity given our strong visibility into ongoing robust demand.'”
“CFO: 'We continue to ramp our capital investment to drive capacity increases to support our business outlook.'”
“CFO: 'During the quarter, we paid down $400 million of our debt.'”
“CFO: 'Revenue growth and margin expansion drove improvement in our operating cash flow, which enabled us to repay approximately $437 million of our outstanding debt for the full fiscal year.'”