Coherent, Inc. (COHR) AI Stock Analysis

Coherent Corp. develops, manufactures, and markets engineered materials, optoelectronic components, and devices globally through two primary segments: Compound Semiconductors and Photonic Solutions. The Compound Semiconductors segment produces optical and electro-optical components for high-power lasers, infrared optics, and assemblies for aerospace, defense, and medical uses, alongside engineered materials like silicon carbide. The Photonic Solutions segment manufactures transceivers for data centers and telecom optical networks, pump lasers, optical amplifiers, wavelength selective switches, crystal materials, and optoelectronic modules serving optical communications, life sciences, and consumer electronics markets.

Revenue grew from $3.32B in FY2022 to $7.12B in FY2026, reflecting a 5-year CAGR of 18.0%. After net losses of $259.5M in FY2023 and $156.2M in FY2024, profitability recovered with net income reaching $49.4M in FY2025 and $805.0M in FY2026. Operating margin improved from 1.0% in FY2023 to 12.7% in FY2026, while gross margin was 37.5%. In the latest quarter ended June 30, 2026, quarterly revenue growth reached 33.7% year-over-year, and quarterly earnings grew 73.0%. Diluted EPS rose to $5.10 in FY2026, compared to $1.66 in FY2024.

As of June 30, 2026, Coherent held $1.99B in cash and short-term investments against total debt of $3.54B, resulting in net debt of $1.55B. The balance sheet shows shareholders' equity of $10.90B, a current ratio of 2.43, and a debt-to-equity ratio of 0.32. Operating cash flow dropped to $79.5M in FY2026 from $633.6M in FY2025. With capital expenditures of $1.11B in FY2026, free cash flow stood at -$1.03B. Cash uses also included dividends paid of $11.4M, while the share count increased 73.7% over 5 years.

COHR closed at $232.90 on October 16, 2026, representing a 1-year return of 100.8% and a 5-year return of 304.6%, outpacing the S&P 500 (SPY) returns of 16.8% and 83.0% over those periods. The stock trades at a trailing P/E of 56.5x and a forward P/E of 30.5x, above the median of its S&P 500 Technology peers at 30.8x and 20.3x. Its EV/EBITDA of 40.0x exceeds the peer median of 19.5x. Coherent trades at a price-to-sales ratio of 6.4x versus the peer median of 6.2x, with a PEG ratio of 0.92.

Wall Street sentiment includes 15 Strong Buy, 4 Buy, and 5 Hold ratings, with 0 Sell and 0 Strong Sell ratings. The mean price target of $410.43 implies upside of 76.2% from the last close of $232.90. For the fiscal year ending June 30, 2027, consensus estimates project revenue of $10.63B and EPS of $9.42, indicating 67.9% EPS growth. Coherent beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Coherent, Inc. (COHR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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