Coherent (COHR) Shares Gain Following Record First-Quarter Results and Raised Outlook
Coherent shares advanced after reporting record first-quarter revenue of $2.37 billion and adjusted earnings of $2.09 per share, driven by robust datacenter optical demand.
Coherent Corp. shares rose 9.2% on November 11, 2026, to reach $234.51, extending gains following its first-quarter fiscal 2027 financial release. The move follows a period of volatile trading for the optical materials and component maker, which trades within a 52-week range of $130.42 to $440.00.
For the first quarter, Coherent reported adjusted earnings of $2.09 per share, topping the Zacks Consensus Estimate of $2 by 4.5% and increasing 80.2% year over year. Total revenue reached a record $2.37 billion, up 49.9% from $1.58 billion in the prior-year period. Datacenter and Communications led the expansion with $1.95 billion in revenue, climbing 79% year over year and contributing roughly 82% of total net sales. Conversely, Industrial segment revenue fell 14.8% year over year to $418.6 million.
Operating performance improved as non-GAAP gross margin reached 40.6%, expanding 184 basis points year over year. Non-GAAP operating income surged 78.1% to $550 million, while operating margin rose to 23.2%. Operating expenses represented 17.4% of revenue, down from prior levels despite a sequential cost increase. The company closed the quarter with cash reserves of $2.34 billion and a debt leverage ratio of 1.1 times, even as capital expenditures rose to $776 million.
Looking ahead, Coherent projects second-quarter revenue between $2.55 billion and $2.75 billion, alongside adjusted earnings of $2.28 to $2.48 per share. Management expects fiscal 2027 pro forma revenue growth to exceed 60%, with quarterly sales reaching $3 billion before fiscal 2027 concludes. Long-term goals include hitting $4 billion in quarterly revenue during fiscal 2028 and achieving a non-GAAP gross margin above 45% before calendar 2028 ends. A recently disclosed five-year customer agreement valued at about $20 billion is scheduled to begin ramping in early calendar 2028.
Despite operational progress, metrics tracked by GuruFocus label the stock significantly overvalued. The publication calculated an intrinsic GF Value of $121.97, suggesting the November 11 price of $234.51 is 92.3% above fair value, while its GF Score sits at 79 out of 100. GuruFocus also noted that company insiders sold $21.6 million in shares over the past 12 months with no recorded open-market purchases.