Coherent Corp. delivered record results for the fourth quarter and full fiscal year 2026, characterized by significant margin expansion and robust growth in its networking business. Performance was underpinned by the accelerating industry shift from copper to optical connectivity within AI-driven data center architectures, allowing the company to achieve operating leverage where earnings growth significantly outpaced revenue gains.
Key Highlights
- Q4 revenue of $2.05 billion exceeded the $1.98 billion consensus estimate, representing 42% pro forma year-over-year growth.
- Datacenter & Communications segment revenue surged 59% year-over-year to $1.62 billion, fueled by massive AI infrastructure scaling.
- Non-GAAP gross margin expanded 215 basis points to 40.2%, driven by a favorable product mix and strong operational execution.
- First quarter fiscal 2027 revenue guidance was set at $2.2 billion to $2.4 billion, suggesting continued sequential acceleration.