COHR

Coherent COHR appears to offer a more compelling investment opportunity following its recent post-earnings correction. The stock retreated despite the company delivering a strong quarterly performance, raising its outlook and highlighting record backlog visibility extending through 2028. Management also reaffirmed that fiscal 2027 growth is expected to exceed fiscal 2026 levels while continuing to ramp production of its 6-inch indium phosphide platform, a critical technology supporting next-generation AI networking. The sharp decline came after an extraordinary rally rather than any deterioration in business fundamentals, reflecting a reset in investor expectations. COHR remains up an impressive 218% over the past year, even after declining 19% over the past month. Image Source: Zacks Investment Research Although the stock trades at a forward 12-month price-to-earnings ratio of 36.29X, above the industry average of 20.89X, the recent correction has made the valuation more reasonable relative to its long-term growth prospects. Image Source: Zacks Investment Research Supporting this view, the Zacks Consensus Estimate for 2026 earnings is pegged at $5.47, indicating 55% year over year growth. The consensus mark for 2026 revenues stands at 7.06 billion, suggesting 21.5% year over year growth. Compared with optical networking peers Lumentum LITE and Fabrinet (FN), Coherent continues to benefit from stronger exposure to AI infrastructure investments and increasing demand for high-speed optical connectivity. While LITE and FN are well-positioned to capitalize on data center upgrades, Coherent has strengthened its competitive standing through manufacturing expansion, long-term customer commitments and improved backlog visibility. The company is also demonstrating an ability to translate robust demand into profitable growth while maintaining confidence in future expansion. As AI infrastructure spending continues to accelerate, Lumentum, Fabrinet and Coherent are all expected to benefit. However, Coherent currently combines superior growth visibility, expanding production capacity and a more attractive post-correction valuation, making it stand out among its optical networking peers. COHR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Tod...

It has been about a month since the last earnings report for Coherent (COHR). Shares have added about 32.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Coherent due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Coherent reported third-quarter fiscal 2026 adjusted earnings of $1.41 per share, which matched the Zacks Consensus Estimate and increased 55% year over year. Revenues of $1.8 billion rose 21% year over year and surpassed the consensus estimate of $1.78 billion by 1.5%. Management highlighted exceptionally strong demand trends across AI networking infrastructure, with bookings reaching record levels and backlog extending into 2028. The company also noted that long-term agreements now extend through the end of the decade. Coherent’s Datacenter & Communications segment remained the primary growth engine, accounting for 75% of total revenues in the quarter compared with 65% in the year-ago period. Segment revenues increased more than 40% year over year. Within the data center business, revenues climbed 13% sequentially and 37% year over year, marking the second consecutive quarter of double-digit sequential growth. Growth was fueled by strong demand for 800G and 1.6T transceivers as hyperscale customers expanded their AI infrastructure deployments. Management expects further acceleration in the current quarter, supported by improving supply availability and capacity expansion initiatives. The communications business also delivered strong results, with revenues increasing 16% sequentially and 60% year over year. Demand remained robust for data center interconnect products, including ZR and ZR+ transceivers, as well as broader transport networking solutions. Management stated that indium phosphide capacity expansion remains a key strategic priority due to industry-wide supply constraints. The company expects to double its internal indium phosphide output capacity by the end of 2026, one quarter ahead of schedule and plans to more than double capacity again by the end of 2027. Coherent’s 6-inch indium phosphide platform is now producing electro-absorption modulated lasers, CW l...

The networking company reports better-than-expected earnings and revenue in its fiscal second quarter.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Coherent (COHR) has been back in focus after reporting quarterly results that topped analyst expectations on revenue and margins, with management pointing to strong AI datacenter and communications demand and higher capital spending. See our latest analysis for Coherent. The stock has been on a strong run, with the share price gaining 18.24% over the past 30 days and 51.99% over 90 days. The 1-year total shareholder return is very large, reflecting how AI datacenter demand and NVIDIA’s stake have shifted expectations around growth and risk. If you are looking beyond Coherent and want to see what else is benefiting from AI infrastructure spending, it could be worth scanning 47 AI infrastructure stocks. With Coherent now trading around US$380, close to the average analyst target, and with expectations tied to AI demand and NVIDIA’s stake, the key question is simple: is there still a buying opportunity here or is future growth already priced in? Coherent's most followed narrative puts fair value at about $371, slightly below the last close at $380.18, which frames the stock as pricing in a premium for its AI and optics opportunity. Read the complete narrative. Read the complete narrative. Want to see what has to happen for that premium to hold up? The narrative leans on rapid revenue expansion, higher margins, and a rich future earnings multiple. The exact mix of growth, profitability and discount rate might surprise you. Result: Fair Value of $371 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there is still the risk that rising competition and large capital projects, such as indium phosphide capacity, could squeeze margins and delay the earnings ramp analysts are banking on. Find out about the key risks to this Coherent narrative. Our DCF work suggests Coherent at $380.18 trades above an estimated future cash flow value of $296.66, which points to an overvalued result. Yet on a P/S of 11.3x versus a fair ratio of 12.8x, the stock looks more reasonable. Which signal do you trust more right now? Look into how the SWS DCF model arrives at its fair value. With both risks and rewards on the table, are you comfortable with how the story currently stacks up, or do you want to pressure test it yourself? Ta...

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at electronic components & manufacturing stocks, starting with Coherent (NYSE:COHR). The sector could see higher demand as the prevalence of advanced electronics increases in industries such as automotive, healthcare, aerospace, and computing. The high-performance components and contract manufacturing expertise required for autonomous vehicles and cloud computing datacenters, for instance, will benefit companies in the space. However, headwinds include geopolitical risks, particularly U.S.-China trade tensions that could disrupt component sourcing and production as the Trump administration takes an increasingly antagonizing stance on foreign relations. Additionally, stringent environmental regulations on e-waste and emissions could force the industry to pivot in potentially costly ways. The 10 electronic components & manufacturing stocks we track reported an exceptional Q1. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line. Luckily, electronic components & manufacturing stocks have performed well with share prices up 17.2% on average since the latest earnings results. Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE:COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing. Coherent reported revenues of $1.81 billion, up 20.5% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was an exceptional quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations. “We delivered another quarter of strong financial performance, with accelerating revenue growth, expanding margins, and improving profitability, driven by exceptionally strong demand across our datacenter and communications businesses,” said Jim Anderson, CEO. Interestingly, the stock is up 8.9% since reporting and currently trades at $375.25. We think Coherent is a good business, but is it a buy today? Read our full report here, it’s free. As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Techno...

Coherent Corp. (NYSE:COHR) is one of the 10 Best Performing Quantum Computing Stocks So Far in 2026. On May 6, Coherent Corp. (NYSE:COHR) reported Q3 fiscal 2026 results, posting revenue of $1.81 billion, rising 21% year over year and 27% on a pro forma basis, according to the company. Margins improved alongside growth as Coherent Corp. (NYSE:COHR) stated GAAP gross margin reached 37.7%, up 243 basis points. Non-GAAP gross margin touched 39.6%, while GAAP EPS was $0.97, climbing to $1.08, and non-GAAP EPS was $1.41, rising $0.50. Chief Executive Jim Anderson tied the growth to demand, saying the company delivered “strong financial performance,” and that “accelerating revenue growth, expanding margins, and improving profitability” was because of datacenter and communications strength. Jim also added that AI datacenter scaling is pushing capacity expansion. Chief Financial Officer Sherri Luther said “significant revenue growth together with gross margin expansion” lifted GAAP and non-GAAP EPS. She also mentioned that the company is increasing capital investment to expand capacity in response to “strong visibility” of demand. Coherent Corp. (NYSE:COHR) produces, refines, manufactures, and markets engineered materials, optoelectronic components and devices, and lasers for the industrial, communications, electronics, and instrumentation markets. It works through networking, materials, and laser areas. While we acknowledge the potential of COHR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.

In early May 2026, Coherent Corp. reported third-quarter fiscal 2026 results showing sales of US$1.81 billion and net income of US$191.40 million, sharply higher than a year earlier, alongside revenue guidance of US$1.91 billion to US$2.05 billion for the fourth quarter. These results came as Coherent deepened its role in AI data center infrastructure, underpinned by long-term supply agreements and a multi‑billion‑dollar partnership with NVIDIA that aligns its expanded photonics capacity with surging AI networking demand. We’ll now examine how Coherent’s NVIDIA partnership and AI datacenter momentum may reshape the earlier investment narrative and key assumptions. AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Coherent today, you need to believe AI data center optics and Coherent’s indium phosphide platform can support sustained growth and healthier margins, even as industrial and cyclical businesses remain uneven. The latest Q3 FY2026 beat and strong Q4 guidance reinforce the AI data center story as the main near term catalyst, while the sharp share price run up and rich multiples keep valuation risk front and center rather than fundamentally changing the core thesis. The most relevant recent development is NVIDIA’s US$2.0 billion equity investment and long term supply agreement, which ties Coherent directly into a critical AI supply chain partner. This turbocharges the existing catalyst around AI data center buildouts by adding capital support and multi year volume visibility, but it also raises the stakes on customer concentration and execution on new capacity ramps, particularly in indium phosphide and advanced photonics modules. Yet behind the AI excitement, investors should still pay close attention to how customer concentration could quickly affect... Read the full narrative on Coherent (it's free!) Coherent's narrative projects $18.3 billion revenue and $2.3 billion earnings by 2029. Uncover how Coherent's forecasts yield a $371.16 fair value, a 3% downside to its current price. Before this earnings beat, the most optimistic analysts were already assuming Coherent could reach about US$9.4 billion in revenue and US$1.4 billion in earnings by 2028, which is far more upbeat than the bas...

The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.19%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.29%. June E-mini S&P futures (ESM26) rose +0.18%, and June E-mini Nasdaq futures (NQM26) rose +0.28%. Stock indexes settled higher on Monday, with the S&P 500 and Nasdaq 10 posting new all-time highs amid strong corporate earnings results and resurgent optimism around artificial intelligence. Strength in chipmakers and AI-infrastructure stocks led the broader market higher on Monday. Gains in stocks were limited on Monday amid rising oil prices and bond yields after the US and Iran failed to reach terms to end the war in the Middle East. Global bond yields rose on concern that the continued standoff will keep energy prices elevated and could force the world’s central banks to tighten monetary policy. The 10-year T-note yield rose +5 bp to 4.41%. Dear D-Wave Quantum Stock Fans, Mark Your Calendars for May 12 Berkshire Hathaway Just Upped Its Stake in Sumitomo Stock. Greg Abel Says It’s Holding for the Long Term. This Analyst Just Raised the Price Target on Coherent Stock by 50%. What to Know. 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! In the latest developments in the Middle East, President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. Iran offered to transfer some of its stockpile of highly enriched uranium to a third country, but rejected the idea of dismantling its nuclear facilities. Iran also demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through the Strait of Hormuz. Despite the ceasefire in place since last month, a drone strike over the weekend set a cargo vessel ablaze off Qatar in the Persian Gulf. Also, the United Arab Emirates and Kuwait both said they intercepted hostile drones. Monday’s US economic news was slightly weaker than expected after Apr existing home sales rose +0.2% m/m to 4.02 million, below expectations of 4.05 million. Chinese trade news was better than expected, a positive factor for global growth. China Apr exports rose +14.1% y/y, stronger than expectations of +8.4% y/y. Apr imports rose +25.3% y/y, stro...

Coherent Corp. COHR reported third-quarter fiscal 2026 adjusted earnings of $1.41 per share, which matched the Zacks Consensus Estimate and increased 55% year over year. Revenues of $1.8 billion rose 21% year over year and surpassed the consensus estimate of $1.78 billion by 1.5%. However, the results did not impress investors, as the stock has declined 2.7% since the earnings release on May 6. Coherent Corp. price-consensus-eps-surprise-chart | Coherent Corp. Quote Management highlighted exceptionally strong demand trends across AI networking infrastructure, with bookings reaching record levels and backlog extending into 2028. The company also noted that long-term agreements now extend through the end of the decade. Coherent’s Datacenter & Communications segment remained the primary growth engine, accounting for 75% of total revenues in the quarter compared with 65% in the year-ago period. Segment revenues increased more than 40% year over year. Within the data center business, revenues climbed 13% sequentially and 37% year over year, marking the second consecutive quarter of double-digit sequential growth. Growth was fueled by strong demand for 800G and 1.6T transceivers as hyperscale customers expanded their AI infrastructure deployments. Management expects further acceleration in the current quarter, supported by improving supply availability and capacity expansion initiatives. The communications business also delivered strong results, with revenues increasing 16% sequentially and 60% year over year. Demand remained robust for data center interconnect products, including ZR and ZR+ transceivers, as well as broader transport networking solutions. Management stated that indium phosphide capacity expansion remains a key strategic priority due to industry-wide supply constraints. The company expects to double its internal indium phosphide output capacity by the end of 2026, one quarter ahead of schedule and plans to more than double capacity again by the end of 2027. Coherent’s 6-inch indium phosphide platform is now producing electro-absorption modulated lasers, CW lasers and photodiodes with yields exceeding legacy 3-inch production lines. During the quarter, the company shipped its first transceivers incorporating components manufactured on the 6-inch platform, contributing to both revenue growth and gross margin expansion. Management also emphasized grow...

The S&P 500 Index ($SPX) (SPY) today is up +0.25%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.17%. June E-mini S&P futures (ESM26) are up +0.29%, and June E-mini Nasdaq futures (NQM26) are up +0.19%. Stock indexes are moving higher today, with the S&P 500 and Nasdaq 100 posting new all-time highs amid strong corporate earnings results and resurgent optimism around artificial intelligence. Gains in stocks are limited today amid rising oil prices and bond yields after the US and Iran failed to reach terms to end the war in the Middle East. Global bond yields rose on concern that the continued standoff will keep energy prices elevated and could force the world’s central banks to tighten monetary policy. The 10-year T-note yield is up +3 bp to 4.39%. Broadcom Hits a Bottleneck as OpenAI Revenue Concerns Claim Their First Casualty Dan Ives Can’t Make It Any Clearer: Palantir Stock Is Still a ‘Golden Goose’ Despite Q1 Earnings Fears Palantir Stock Has a ‘High-Class Problem’: Demand for Its Software Is Far Outpacing Supply Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. In the latest developments in the Middle East, President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. Iran offered to transfer some of its stockpile of highly enriched uranium to a third country, but rejected the idea of dismantling its nuclear facilities. Iran also demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through the Strait of Hormuz. Despite the ceasefire in place since last month, a drone strike over the weekend set a cargo vessel ablaze off Qatar in the Persian Gulf. Also, the United Arab Emirates and Kuwait both said they intercepted hostile drones. Today’s US economic news was slightly weaker than expected after Apr existing home sales rose +0.2% m/m to 4.02 million, below expectations of 4.05 million. Chinese trade news was better than expected, a positive factor for global growth. China Apr exports rose +14.1% y/y, stronger than expectations of +8.4% y/y. Apr imports rose +25.3% y/y, stronger than expectations of 20.0% y/y. WTI crude oil prices (CLM26) are up by more than 2% today, as optimism that the US an...

The S&P 500 and Nasdaq hit new highs on Iran deal hopes. Nvidia leads new buys with Arm a big earnings mover late.

Lumentum shares fall after the optical networking giant reported fiscal third-quarter earnings, narrowly missing lofty revenue expectations.