COHR

- Coherent (COHR) and Applied Optoelectronics (AAOI) lead AI optics losses, sinking 12% and 10% as a chipmaker-driven selloff accelerates ahead of earnings. - LYTE's 10% drop dwarfs QQQ's 2% decline, exposing how concentrated AI optics exposure amplifies sector-wide tech selling. - Lumentum CEO Michael Hurlston said datacenter optical components are sold out for years, yet strong demand hasn't prevented a 9% share drop. - Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor) Optical networking stocks that powered the AI data-center trade this year are falling fast, and the selling is landing on the group's biggest names at once. Coherent (NYSE:COHR) stock is trading at $209.82, down 12% in afternoon trading, showing how quickly momentum in AI optics has reversed. Selling extends across the AI connectivity supply chain, from laser chips to finished transceiver modules. Meanwhile, Applied Optoelectronics (NASDAQ:AAOI) stock is at $69.30, down 10%, a slide that lands just behind Coherent's loss. Lumentum Holdings (NASDAQ:LITE) stock is at $770.53, down 9%. That marks a smaller decline than Coherent and Applied Optoelectronics posted, though still a steep loss for a name that climbed on AI optical demand. Each of these companies sells optical parts that move data inside AI datacenters, so shifts in sentiment toward hyperscaler spending tend to hit Coherent, Applied Optoelectronics and Lumentum shares together. The Roundhill Photonics & Optics ETF (CBOE:LYTE) is down 10%, falling nearly as hard as Coherent, Applied Optoelectronics and Lumentum. Over in large-cap tech, the Invesco QQQ Trust (NASDAQ:QQQ) is down 2%, representing a far softer retreat for the NASDAQ 100 benchmark. That gap marks the optics selling as group-wide caution before Coherent, Applied Optoelectronics and Lumentum report quarterly results. ------ Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years. That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here › ------ Technology stocks are falling broadly, led by chipmakers, and the optics group is extending a slide that has erased much of its earlier gains, and Coherent, Applied Optoelectronics and Lumentum shares all remain higher for the year, a reminder of how far the group ran before this pullback took hold. Quarterly reports from Coherent, Applied Optoelectronics and Lumentum arrive in the coming weeks, and the selling reflects caution before those numbers land. Lumentum Chief Executive Officer Michael Hurlston stated earlier this month that the company's data center optical components are sold out for years. That demand background hasn't shielded Lumentum shares from the chip-led selling, and Coherent and Applied Optoelectronics shares are sliding right alongside, as strong order books and falling share prices can coexist when a group has rallied hard and the broader technology sector turns lower. Coherent has an industrial laser business. That gives it a wider product mix than a pure-play datacenter optics supplier, though Coherent shares are trading in lockstep with AI optics names during this selloff. The company's role in the transition from copper to optical connectivity in AI datacenters remains the heart of the bullish case. Applied Optoelectronics depends on a small group of large customers. Vertical integration from laser chips and subassemblies through finished optical modules gives the company closer control over supply, but a delay from a single customer can weigh hard on results. Growth projects at Lumentum span optical circuit switching, cloud modules and ultra-high-power co-packaged optics lasers, all tied to rising AI bandwidth needs. A sold-out order book supports the bullish case but raises the bar for execution, since constrained output could cap revenue growth. Roundhill's LYTE photonics fund counts Lumentum and Coherent among its largest holdings. That concentration explains why the fund is sliding almost in step with Lumentum and Coherent. The coming reports from Coherent, Lumentum and Applied Optoelectronics will show whether capacity is keeping pace with demand. For Applied Optoelectronics, the open variable is order timing from its large customers. Lumentum's management needs to show that sold-out demand is turning into higher shipments. Until those reports arrive, investors weighing their exposure should adjust their holdings carefully given that Coherent, Applied Optoelectronics and Lumentum shares may keep trading in step with the chip sector's swings. (Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here › Contact [email protected] for any questions or corrections.

- Susquehanna expects "modest upside" to third-quarter semiconductor earnings and fourth-quarter guidance, citing AI demand and a continuing broader industry upcycle. - The firm raised its AMD price target to $620 from $550 and Qualcomm to $185 from $160, maintaining its ratings. - Susquehanna cut targets on Coherent and Onsemi, but maintained 'Positive' ratings on both. Advanced Micro Devices Inc. (AMD) and Qualcomm Inc. (QCOM) saw their price targets raised by Susquehanna on Wednesday, while Intel Corp. (INTC) and Coherent Corp. (COHR) faced cuts as the firm revised its outlook for semiconductor stocks ahead of quarterly earnings. Susquehanna expects "modest upside" to third-quarter earnings and fourth-quarter guidance, driven largely by artificial intelligence (AI) demand, while the broader semiconductor upcycle continues, according to The Fly. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox At the time of this writing, QCOM and AMD stocks were trading nearly 1% higher, while COHR was up more than 1%. Meanwhile, INTC shares were in the red. Susquehanna raised AMD's price target to $620 from $550, maintaining a 'Positive' rating. It also raised QCOM's target to $185 from $160 and Skyworks Solutions' (SWKS) target to $90 from $65, maintaining 'Neutral' ratings on both. The revisions come as AMD expects third-quarter revenue of approximately $13 billion, plus or minus $300 million, representing roughly 41% year-over-year growth at the midpoint. AMD's second-quarter revenue rose 50% to $11.5 billion, including a 107% jump in data-center revenue to $6.7 billion, driven by demand for EPYC processors and Instinct graphics processing units. Qualcomm, meanwhile, reported fiscal third-quarter revenue of $9.9 billion in July and expects non-handset revenue growth, including data centers, to exceed 60% in fiscal 2027, compared with 24% in fiscal 2026. Susquehanna cut its price targets by 20% for ON stock, about 18% for COHR stock, 17% for WOLF and 9% for INTC. The firm maintained 'Positive' ratings on Onsemi and Coherent and 'Neutral' ratings on Wolfspeed and Intel, according to The Fly. Coherent, which supplies optical technologies used in AI infrastructure, reported fiscal fourth-quarter (Q4) revenue of $2.05 billion and forecast fiscal first-quarter (Q1) 2027 revenue of $2.2 billion to $2.4 billion. Intel, meanwhile, forecast third-quarter revenue between $15.8 billion and $16.8 billion after reporting 25% year-over-year growth in second-quarter sales. The target reductions came despite Susquehanna's broader expectations for modest upside in semiconductor earnings. The firm did not change its ratings on any of the seven companies. Company | Previous Target | New Target | Rating AMD (AMD) | $550 | $620 | Positive Qualcomm (QCOM) | $160 | $185 | Neutral Skyworks (SWKS) | $65 | $90 | Neutral Coherent (COHR) | $425 | $350 | Positive Onsemi (ON) | $150 | $120 | Positive Intel (INTC) | $115 | $105 | Neutral Wolfspeed (WOLF) | $30 | $25 | Neutral Susquehanna's Revised Price Targets And Ratings For Semiconductor Stocks (Oct. 21, 2026) Intel is scheduled to report third-quarter results on October 29, followed by AMD on November 3. The reports are expected to offer investors a clearer picture of whether AI-driven demand is translating into stronger revenue and earnings guidance across the semiconductor industry. On Stocktwits, retail sentiment toward AMD and INTC was 'neutral,' while COHR, SWKS, ON and WOLF were in 'bearish' territory. Sentiment around QCOM stock stood out as 'extremely bearish'. So far in 2026, AMD stock has gained over 143%, closely followed by Intel at 132%. ON stock has risen over 34%, WOLF shares about 23%, SWKS stock up nearly 27%, and COHR up around 21%. Qualcomm has lagged the group, gaining just over 2% so far this year. See Also: Yardeni's Meter Sees AI Bubble, But No Burst Yet — Only 9% Of Similar Cases Saw A Bear Market Within 2 Years For updates and corrections, email newsroom[at]stocktwits[dot]com Harshita Tyagi has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - FUN Stock Heads For 4th Week Of Loss: Analyst Sees 29% Downside Ahead Of Earnings As Mounting Debt, Weak Sales Loom - Nuclear Energy Analyst Roundup: Wall Street Weighs In On OKLO, SMR, CEG, VST, LEU Stocks - TSLA, SPCX Slip Overnight: Musk Reportedly Pushes Merger Before Trump's Exit — ARK Sees Tesla Holders '5x Better Off' By 2036

- 3M surged 6% after beating Q3 EPS at $2.50 versus the $2.39 consensus and announcing an expanded Amazon data center partnership. - Amazon's 7-year warrant to acquire roughly 3 million 3M shares vests primarily once cumulative data center purchases reach $6 billion. - Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor) 3M (NYSE:MMM) stock jumped 6% to $171.91 as investors weighed an expanded Amazon (NASDAQ:AMZN) data center relationship alongside better-than-expected quarterly earnings. The company also raised its full-year adjusted earnings outlook, giving investors both a near-term profitability catalyst and a longer-term infrastructure opportunity. The advance outpaced Coherent (NYSE:COHR) stock, which gained 1.33% to $235.11, while Corning (NYSE:GLW) stock was essentially flat, slipping 0.21% to $132.46. Those moves put 3M stock well ahead of the two peers today. 3M expanded its commercial relationship with Amazon to deploy and scale optical connectivity and other data center products. The agreement gives 3M a potential growth opportunity as Amazon invests in infrastructure supporting cloud computing and AI workloads. As part of the arrangement, 3M issued an Amazon subsidiary a seven-year warrant to purchase up to approximately 3.16 million 3M shares at $164.89 each. About 85% of the warrant shares vest based on Amazon's purchases of data center products, with that portion fully vesting once cumulative payments reach $6 billion. The remaining 15% depends on separate milestone conditions, making the arrangement more nuanced than an immediate $6 billion order. For 3M, the commercial upside depends on purchases materializing over time, while an eventual warrant exercise could increase the company's share count. 3M reported third-quarter adjusted earnings of $2.50 per share, exceeding the $2.39 consensus estimate cited in one earnings analysis. Revenue of approximately $6.6 billion was broadly in line with expectations, making profitability the clearer quarterly surprise. ------ Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years. That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here › ------ The company reported adjusted organic sales growth of 3.3%, while GAAP sales increased 1% year over year. Those measures use different reporting bases, so investors shouldn't confuse underlying adjusted growth with the change in reported revenue. For the full year, 3M raised adjusted earnings guidance to $9.10 to $9.15 per share, incorporating a new reporting basis. That qualification matters because investors should compare the updated outlook with historical figures prepared on a consistent basis rather than assume the entire change reflects stronger operations. Coherent stock's 1.33% gain and Corning stock's 0.21% decline provided a useful contrast with 3M stock's 6% jump. The uneven performance suggests investors were responding particularly strongly to 3M's combination of company-specific developments rather than buying every optics-related stock equally. The Industrial Select Sector SPDR ETF (NYSEARCA:XLI) rose 0.75% to $167.93, offering a broader industrial-sector comparison for 3M stock. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) gained 0.61% to $771.15. Against those benchmarks, 3M stock's advance was substantially stronger than either the industrial group or the broader market. The comparison supports viewing the earnings report and Amazon agreement as important catalysts, although a single session doesn't establish a lasting performance trend. 3M now has two developments for investors to follow: delivery against the raised earnings outlook and progress converting the Amazon relationship into sales. The company could build confidence if stronger profitability accompanies sustained demand for optical connectivity and other data center products. However, 3M's warrant structure ties much of the potential equity participation to future commercial activity rather than revenue already earned. Investors should watch for how purchases develop and whether the resulting growth justifies any eventual dilution. The takeaway is that 3M stock has both an earnings catalyst and a longer-term growth opportunity supporting the rally. Further gains may depend on execution, so investors should consider keeping their position sizes modest rather than treating the Amazon relationship as guaranteed future revenue. (Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here › Contact [email protected] for any questions or corrections.

With a market cap of $45.9 billion, Coherent Corp. (COHR) is a global leader in photonics, delivering innovative photon-based technologies that power advancements in the datacenter, communications, and industrial markets. It combines a broad technology portfolio, resilient supply chain, and global scale to help customers solve complex technological challenges. The Saxonburg, Pennsylvania-based company is slated to announce its fiscal Q1 2027 results after the market closes on Wednesday, Nov. 4. Ahead of the release, analysts predict COHR to report EPS of $1.78, a surge of 91.4% from $0.93 in the year-ago quarter. It has exceeded Wall Street's earnings expectations in three of the past four quarters while missing on another occasion. - Intel vs. AMD: The CPU Comeback Has Become a 2-Stock Fight, But 1 Is the Better Buy - Micron Stock Alert: Elon Musk Just Made The Bull Case Even Stronger - What a New Nvidia-Backed AI Platform Means for Honeywell Stock - Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2026, analysts expect Coherent to post EPS of $8.67, an increase of 79.5% from $4.83 in fiscal 2025. Shares of Coherent have climbed 100.9% over the past 52 weeks, surpassing the broader S&P 500 Index's ($SPX) 15.5% gain and the State Street Technology Select Sector SPDR ETF's (XLK) nearly 29% increase over the same period. Coherent reported Q4 2026 results on Aug. 12, with adjusted EPS of $1.74 and revenue of $2.05 billion, beating analysts' estimates. The biggest growth driver was strong AI infrastructure demand, with its data center and communications segment revenue surging to $1.62 billion, alongside rising investment in optical transceivers and photonics products used in AI data centers. Coherent also forecast fiscal Q1 2027 revenue of $2.2 billion - $2.4 billion and adjusted EPS of $1.85 - $2.05, above the expectations, supported by expanding production capacity and Nvidia's $2 billion investment announced in March. Analysts' consensus view on COHR stock remains bullish, with a "Strong Buy" rating overall. Out of 24 analysts covering the stock, 18 recommend a "Strong Buy," one "Moderate Buy," and five "Holds." This configuration is slightly more bullish than three months ago, with 17 analysts suggesting a "Strong Buy." The average analyst price target is $404.54, indicating a potential upside of 73.7% from the current levels. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

- Applied Optoelectronics, Lumentum, and Coherent rallied Monday as traders positioned ahead of early November earnings reports focused on AI optical demand. - Lumentum CEO Michael Hurlston stated the company is sold out through 2029 and cannot meet 70% of demand for some products through 2027. - Coherent's PhotonLink integrated optics platform already has 10-plus customer engagements, with initial revenue expected to ramp in the December quarter. - Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Coherent didn't make the cut. Enter your email to see the names that beat COHR. The report is free. Enter your email and see if any of your stocks made the cut. Applied Optoelectronics (NASDAQ:AAOI) stock jumped 5% to $79.01 on Monday as optics names advanced ahead of upcoming earnings reports. Lumentum (NASDAQ:LITE) shares rose 4% to $856.18, while Coherent (NYSE:COHR) stock climbed 2% to $236.93. The group found support from anticipation surrounding results due in early November and continued interest in AI-driven optical demand. The Roundhill Photonics & Optics ETF (BATS:LYTE) advanced 2% to $20.20. Broader markets also moved higher, with the SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) up 0.56% to $767.49. Applied Optoelectronics and Lumentum are scheduled to report earnings on November 5, and Coherent is set to report on November 4, keeping near-term focus on guidance and order trends. Applied Optoelectronics shares led the session's gains among the three. The company supplies optical components used in data-center and communications applications that have benefited from rising bandwidth needs. Traders positioned ahead of the November 5 report, watching for updates on AI-related optical demand and capacity utilization. Lumentum stock also posted a solid advance. CEO Michael Hurlston recently noted that Lumentum's components are sold out through 2029 and that the company cannot meet roughly 70% of demand for some products through 2027 and 30% for others through 2028. Those comments have reinforced the view that optical connectivity remains a bottleneck in AI infrastructure buildouts. ------ Free Report, Just Released Why Didn't COHR Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And COHR didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → ------ Coherent stock rose more modestly. The company has launched its PhotonLink integrated optics platform designed for co-packaged optics, near-packaged optics, and chip-to-chip connectivity. Coherent already has more than 10 customer engagements in these areas, with initial PhotonLink revenue expected to ramp in the December quarter. Coherent can benefit from existing high-speed optical transceiver demand even if broader co-packaged optics adoption takes longer than expected. One analyst recently reiterated a Buy rating with a $395 price target, pointing to opportunities in both current products and newer technologies. Valuation remains elevated relative to historical averages, leaving limited room for disappointment. The Roundhill Photonics & Optics ETF's gain reflected measured interest across the specialty group. Photonic integrated circuits are seeing rapid expansion tied to high-speed data transmission and energy-efficient optical technologies for AI data centers. Market forecasts point to strong compound annual growth rates through the end of the decade as cloud and hyperscale operators scale optical infrastructure. Similarities among Applied Optoelectronics, Lumentum, and Coherent include exposure to AI networking demand and optical components for data centers. Differences appear in product focus and scale, with Lumentum highlighting multiyear sold-out conditions, Coherent emphasizing integrated platforms, and Applied Optoelectronics concentrating on specific optical modules. The broader chip sector has also shown signs of stabilizing after a recent soft stretch. Upcoming earnings will provide the next major checkpoints for order visibility and margin trends across the three companies. Lumentum's multiyear capacity constraints and Coherent's PhotonLink ramp offer potential catalysts if demand remains robust. Applied Optoelectronics faces similar questions around AI optical adoption and competitive positioning. Investors should consider keeping their position sizes modest given the volatility typical of optics and photonics stocks. Stronger-than-expected guidance or further evidence of sold-out conditions could support the shares, while any signs of softer demand or elevated valuations may pressure the group after the recent run. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And COHR wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->> Contact [email protected] for any questions or corrections.

A month has gone by since the last earnings report for Coherent (COHR). Shares have lost about 10.4% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Coherent due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Coherent Corp. before we dive into how investors and analysts have reacted as of late. Coherent reported fiscal fourth-quarter adjusted EPS of $1.74, which increased 74% year over year and 23.4% quarter over quarter, beating the Zacks Consensus Estimate by 7.4%. Revenues crossed $2 billion, beating the Consensus Estimate by 2.7% and increasing 33.8% year over year and 13.3% sequentially. Full-year revenues rose 22.5% year over year to a record $7.1 billion from $5.8 billion. Pro forma growth was stronger at approximately 28%, reinforcing that the underlying portfolio expanded faster than the reported total after accounting for business sales. The Datacenter & Communications segment provided nearly all the momentum. Quarterly segment revenues climbed to $1.6 billion, up 58.6% year over year and 18.6% quarter over quarter. It represented roughly 79% of consolidated revenues, compared with about 67% a year earlier. Industrial revenues moved in the opposite direction, falling 15.8% year over year and 3% sequentially to $430.5 million. For the full year, Datacenter & Communications advanced 40.5% to $5.275 billion, while Industrial declined 10.3% to $1.8 billion. Coherent’s growth profile is therefore becoming more concentrated around AI networking and optical connectivity. The earnings quality improved alongside revenues. GAAP gross margin expanded to 38.5%, up 277 basis points year over year and 82 basis points sequentially. Adjusted gross margin reached 40.2%, improving 215 basis points annually and 66 basis points from the fiscal third quarter. Manufacturing yields, lower input costs, pricing actions and progress on six-inch indium phosphide production contributed to the expansion. The six-inch platform is especially important because it can produce roughly four times the output at about half the cost of the older three-inch process. Adjusted operating income increased 62.1% year over year and 21.8% sequentially to $446 million. The corresponding operating margin reached 21.8%, expanding 381 basis points year over year and 152 basis points quarter over quarter. Adjusted net income rose 82.7% annually and 27.2% sequentially to $351 million. GAAP EPS improved to $1.19 from a loss of $0.83 one year earlier and $0.97 in the preceding quarter. Indium phosphide production remains the principal constraint, although output is scheduled to double year over year during the current quarter. Demand visibility extends into calendar 2028, supported by long-term agreements running through the decade. Additional growth should come from 800-gigabit and 1.6-terabit transceivers, optical circuit switching, co-packaged optics, multi-rail systems and the PhotonLink platform. Supporting those opportunities requires substantial spending. Fourth-quarter capital expenditures reached $556 million, while full-year additions to property, plant and equipment surged 150.2% to $1.103 billion. Annual operating cash flow nevertheless fell 87.5% to $79.5 million. Inventory increased 79.5% year over year to $2.581 billion, considerably faster than revenues. Although expanding inventory can support a rapid production ramp, it also raises working-capital and demand-forecasting risk. Positively, total debt declined approximately 12.6% to $3.222 billion and cash increased 27.8% to $1.162 billion. For the first quarter of fiscal 2027, Coherent expects revenues of $2.2 billion to $2.4 billion. The $2.3 billion midpoint implies approximately 12.4% sequential growth and about 45.6% growth from first-quarter fiscal 2026 revenues of $1.58 billion. The comparison is not perfectly like-for-like because of portfolio changes, but the acceleration remains substantial. The company expects an adjusted gross margin of 39.5%-41.5%. Its 40.5% midpoint would represent a modest 30-basis-point sequential improvement. Projected adjusted EPS of $1.85-$2.05 implies midpoint growth of 12.1% from the fiscal fourth quarter and approximately 68% year over year. Guidance exceeded the prior quarter’s scale and established a credible path toward a quarterly revenue run rate above $3 billion by fiscal 2027’s end. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 10.08% due to these changes. At this time, Coherent has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Coherent has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Coherent belongs to the Zacks Technology Services industry. Another stock from the same industry, Dave Inc. (DAVE), has gained 7.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. DAVE INC reported revenues of $170.8 million in the last reported quarter, representing a year-over-year change of +29.7%. EPS of $4.12 for the same period compares with $3.14 a year ago. For the current quarter, DAVE INC is expected to post earnings of $4.35 per share, indicating a change of +2.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +2% over the last 30 days. DAVE INC has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coherent Corp. (COHR) : Free Stock Analysis Report Dave Inc. (DAVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Adobe ADBE reported third-quarter fiscal 2026 non-GAAP earnings of $6.13 per share, which rose 15.4% year over year and beat the Zacks Consensus Estimate by 0.82%. Revenues of $6.76 billion increased 12.9% and beat the consensus mark by 1.02%. Growth was led by customer-group subscriptions, while total Adobe ending annualized recurring revenue (ARR) reached $27.50 billion, up 11.2% year over year. AI-first ending ARR exceeded $650 million and grew more than 150% year over year. Subscription revenues were $6.58 billion, up 13.7% year over year, and accounted for 97.4% of total revenues. Product revenues fell 1.5% to $67 million. Services and other revenues declined 14.0% to $111 million. Adobe Inc. price-consensus-chart | Adobe Inc. Quote Total Customer Group subscription revenues were $6.56 billion, rising 14% year over year as reported and 13% in constant currency. The recurring-revenue mix continued to dominate Adobe's top line in the quarter.Business Professionals & Consumers subscription revenues were $1.91 billion, increasing 16% year over year as reported and 15% in constant currency. Acrobat + Express monthly active users (MAUs) surpassed 900 million, growing more than 25%, while Acrobat AI Assistant MAU doubled sequentially.Creative & Marketing Professionals subscription revenues totaled $4.65 billion, up 13% as reported and 12% in constant currency. Creative freemium MAU crossed 100 million and advanced more than 70% year over year. Firefly ending ARR across the Firefly App and Firefly credit packs grew 40% sequentially. Adobe also cited accelerating usage among Firefly Enterprise customers and continued strength in Creative Cloud Teams and Enterprise offerings.Within marketing, ending ARR grew more than 20% year over year for each of Adobe Experience Manager and agentic web apps, Adobe GenStudio, and Adobe Experience Platform and apps. The number of paid Brand Visibility customers doubled quarter over quarter.Adobe said its products now serve more than one billion monthly active users across its businesses, a base that grew more than 20% year over year. The company is also extending Acrobat capabilities to platforms, including ChatGPT, Chrome, Claude, Microsoft Edge and WhatsApp.Adobe also announced an agreement to acquire Topaz Labs, whose AI enhancement models are expected to be integrated across Firefly, Firefly Services and Creative Cloud applications. The transaction is expected to be closed in the fourth quarter, subject to regulatory approvals and customary conditions. GAAP gross margin was 88.7%, down about 60 basis points (bps) from 89.3% reported in the year-ago quarter. Operating expenses rose 14.8% year over year to $3.64 billion, reflecting higher research and development, sales and marketing, and general and administrative costs.GAAP operating income increased to $2.35 billion from $2.17 billion, but the operating margin contracted to 34.8% from 36.3%. Non-GAAP operating income was $2.97 billion, translating to a 44% margin versus 46.3% in the year-ago quarter. Cash flows from operations reached a third-quarter record of $2.52 billion, up 14.8% year over year. Adobe ended the quarter with $5.64 billion in cash and short-term investments.Remaining performance obligations (RPO) were $22.16 billion, up 8% year over year, while current RPO grew 9%. Adobe repurchased roughly 9.5 million shares and exited the quarter with about $24.55 billion remaining under its April 2026 repurchase authorization. For the fourth quarter of fiscal 2026, Adobe expects revenues between $6.80 billion and $6.85 billion. Non-GAAP earnings are forecast between $6.30 and $6.35 per share, with a non-GAAP operating margin of roughly 44%. Business Professionals & Consumers subscription revenues are projected to be $1.93-$1.95 billion, while Creative & Marketing Professionals subscription revenues are expected in the range of $4.665-$4.695 billion.For fiscal 2026, Adobe raised its revenue target to $26.576-$26.626 billion and non-GAAP earnings outlook to $24.45-$24.50 per share. Fiscal 2026 non-GAAP operating margin is projected at approximately 45%.The company also expects ending ARR growth of 10.2% year over year, based on its fiscal 2026 beginning book of business of $25.66 billion. Currently, ADBE carries a Zacks Rank #4 (Sell).Coherent COHR, MACOM Technology Solutions MTSI and Teradyne TER are some better-ranked stocks that investors can consider in the broader sector. Coherent, MACOM Technology Solutions and Teradyne each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rates for Coherent, MACOM Technology Solutions and Teradyne are currently pegged at 52.49%, 42.35% and 54.38%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Teradyne, Inc. (TER) : Free Stock Analysis Report Coherent Corp. (COHR) : Free Stock Analysis Report MACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Coherent stock has delivered a very large 3 year gain, yet the latest Discounted Cash Flow (DCF) intrinsic value estimate points to the shares trading at roughly half of that model’s value, while broader valuation checks look more mixed than clearly cheap. Over the past 3 years Coherent shares are up roughly 7x, which puts recent price swings into a very different context for anyone thinking about new money going into the stock. The recent return to profitability and push into 300mm silicon carbide substrates for AI and high performance computing chips can support the intrinsic value story, while customer concentration and ongoing capital needs may limit how quickly that value is realised. On a broad set of valuation checks, Coherent screens as a mixed picture rather than a straightforward bargain, with a value score of 4.0 that sits between cheap and expensive readings. The issue now is whether the current share price already reflects the intrinsic value suggested by the DCF work, or if there is still a meaningful valuation gap for Coherent. Scan other AI infrastructure plays showing strong moves in optical and semiconductor materials using 55 AI infrastructure stocks as a curated starting universe alongside Coherent. The Discounted Cash Flow (DCF) model values Coherent by projecting future free cash flows and discounting them back to today. For Coherent, the latest twelve month free cash flow shows a loss of $683.5 million. The model assumes that cash generation recovers over time rather than staying weak. On those projections, the DCF points to an estimated intrinsic value of about $528 per share. This compares with a current share price that, according to the model, implies roughly a 50% discount to that intrinsic value. As a result, Coherent screens as undervalued on this method despite its recent share price gains. The recent return to profitability and the push into 300mm silicon carbide substrates for AI and high performance computing are factors that help explain why the cash flow outlook in the model is more positive than the recent free cash flow loss alone might suggest. On this DCF view, Coherent stock currently appears undervalued relative to the cash flows analysts expect it to produce. Our Discounted Cash Flow (DCF) analysis suggests Coherent is undervalued by 50.0%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Coherent. P/E is useful for Coherent because the company has returned to profitability and investors can again anchor the share price to reported earnings. Coherent currently trades on about 67.3x earnings, which is more than double the Electronic industry average P/E of 29.7x. The fair P/E ratio implied by the model, which adjusts for Coherent’s growth profile, margins, size and risk, is about 64.5x. That sits a little below the peer group average of 72.3x but close to where Coherent trades today. The small gap between the current 67.3x and the 64.5x fair P/E suggests the stock is neither clearly cheap nor clearly expensive on this earnings multiple. On the P/E view, Coherent looks priced at roughly a fair level compared with what its earnings profile would typically justify. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Coherent valuation puzzle leaves off. They spell out what would need to happen to Coherent's growth, margins and earnings for the stock to be worth materially more or less than today's price, and they sit on the company's Community page. Rather than rely on a single multiple or DCF output, each narrative lays out the assumptions behind its fair value so you can compare them with Coherent's actual results over time. One of the top community narratives on Coherent: 36% undervalued Read one of the top narratives on Coherent Do you think there's more to the story for Coherent? Head over to our Community to see what others are saying! For Coherent, the Discounted Cash Flow (DCF) intrinsic value estimate points to a clear discount, while the earnings multiple view says the stock is priced about right. That split partly reflects how strongly the DCF leans on future cash flow recovery, compared with a P/E that is more anchored to current sentiment and sector pricing. The broader checks look mixed rather than strongly supportive, especially after such a sharp three year share price move. The key question from here is whether Coherent can turn its silicon carbide and AI related opportunities into durable cash generation before funding needs or execution risks absorb that apparent discount. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include COHR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Investors might want to bet on Coherent (COHR), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this Laser and optics manufacturer, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Coherent, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $1.96 per share for the current quarter, which represents a year-over-year change of +69.0%. Over the last 30 days, seven estimates have moved higher for Coherent compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 9.88%. For the full year, the company is expected to earn $9.38 per share, representing a year-over-year change of +67.2%. The revisions trend for the current year also appears quite promising for Coherent, with 10 estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 13.08%. The promising estimate revisions have helped Coherent earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Coherent because of its solid estimate revisions, as evident from the stock's 18.4% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coherent Corp. (COHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research