Key Highlights

  • Fiscal 2026 Revenue was $7,118.2 million, up 22.5 per cent, with fourth-quarter revenue of $2,045.5 million.
  • Capital expenditure rose to $1,102.9 million from $440.8 million, against Operating Cash Flow of $79.5 million.
  • First-quarter fiscal 2027 revenue is guided at $2.2 billion to $2.4 billion.

Fiscal 2026 results

Coherent Corp. (NYSE:COHR) reported fourth-quarter and full-year results for the fiscal year ended 30 June 2026 on 12 August 2026. Fourth-quarter revenue was $2,045.5 million, up 33.8 per cent year on year and 13.3 per cent on the previous quarter. Full-year revenue was $7,118.2 million, up 22.5 per cent.

The Datacenter and Communications segment generated $1,615.0 million in the quarter, compared with $1,018.3 million a year earlier, an increase of about 59 per cent. Industrial revenue fell to $430.5 million from $511.1 million, a decline of about 16 per cent. For the full year, Datacenter and Communications revenue was $5,274.6 million and Industrial was $1,843.6 million, so the company's mix continues to shift towards data-centre customers.

Margins and earnings

Fourth-quarter gross Margin was 38.5 per cent on a GAAP basis and 40.2 per cent on a non-GAAP basis. GAAP diluted Earnings per share were $1.19, compared with a loss of $0.83 a year earlier, while non-GAAP Diluted Earnings per Share were $1.74, compared with $1.00. Non-GAAP Operating Margin was 21.8 per cent.

For the full year, GAAP diluted earnings per share were $4.12 and non-GAAP diluted earnings per share were $5.61, up from $3.53.

Cash flow and funding the build-out

Cash flow tells a different story from earnings. Full-year operating cash flow was $79.5 million, compared with $633.6 million in the prior year, while Capital Expenditure rose to $1,102.9 million from $440.8 million. Capital expenditure therefore exceeded operating cash flow by more than $1.0 billion.

The company funded the gap through the Capital Markets and asset sales. It raised $1,998.6 million of Equity proceeds and drew $1,250.0 million on a Term A facility. It also booked gains of $124.1 million from the sale of its aerospace and defence and Munich tools businesses. At 30 June 2026 it held $1,162.0 million of cash and $825.0 million of short-term investments. Total Debt was $3,222.2 million, down from about $3,687 million a year earlier, and mezzanine preferred equity fell from $2,483.3 million to zero.

Guidance and management commentary

The following are company forecasts rather than results. For the first quarter of fiscal 2027, Coherent guided to revenue of $2.2 billion to $2.4 billion, non-GAAP gross margin of 39.5 per cent to 41.5 per cent, non-GAAP operating expenses of $400 million to $420 million, a tax rate of 18 per cent to 20 per cent and non-GAAP earnings per share of $1.85 to $2.05.

The chief executive cited customer Demand and expanding production capacity, and management said it is prioritising capital spending to expand Manufacturing capacity. The company also said AI data-centre architectures are shifting from copper to optical connectivity. The release did not provide transceiver-specific figures.

What to watch

Several items can be followed over coming quarters. The first is whether fiscal first-quarter revenue falls within the $2.2 billion to $2.4 billion range. The second is whether capital expenditure converts into capacity and cash flow, given that operating cash flow was far below spending. The third is whether Industrial segment revenue stabilises.