Coherent stock resets growth bar after record fiscal Q1

Coherent delivered record fiscal first-quarter revenue and raised its fiscal 2027 growth outlook, adding a new execution test for its AI infrastructure strategy. The company reported the results on November 4 for the quarter ended September 30, 2026, in an investor release.

Growth outlook moves above 60%

Revenue rose 49.9% year over year to 2.37 billion US dollars and increased 56% on a pro forma basis. Datacenter and Communications revenue reached 1.95 billion US dollars, while Industrial revenue declined to 418.6 million US dollars.

Management now expects fiscal 2027 pro forma revenue growth to exceed 60%, more than twice the pro forma growth rate achieved in fiscal 2026. The target raises the importance of capacity expansion and sustained demand for optical connectivity as AI data centers shift away from copper.

Margins improve with scale

GAAP gross margin increased to 39.1% from 36.6% a year earlier, while adjusted gross margin reached 40.6% versus 38.7%. GAAP diluted earnings per share rose to 1.90 US dollars from 1.19 US dollars, and adjusted diluted earnings per share increased to 2.09 US dollars from 1.16 US dollars.

Coherent also lifted its longer-term ambition. Management expects a quarter with adjusted gross margin above 45% before the end of calendar 2028, subject to demand, production scale and cost control.

Next quarter sets the test

For fiscal second-quarter 2027, the company guides to revenue of 2.55 billion to 2.75 billion US dollars, adjusted gross margin of 40% to 42% and adjusted diluted earnings per share of 2.28 to 2.48 US dollars. Coherent also expects its first 3 billion US dollar revenue quarter by the end of fiscal 2027 and its first 4 billion US dollar quarter in fiscal 2028.

Coherent stock traded at 206.90 euros on Lang & Schwarz at 16:02 CET on Thursday, November 12, 2026. That was 2.25% above the 202.35-euro quote in the latest relevant report published at 13:01 CET the same day, a separate comparison from any daily exchange close.

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