Coherent Corp. reported second quarter fiscal 2026 results on February 4, 2026. The company posted revenue of $1.69 billion, representing 17% year-over-year growth, or 22% on a pro forma basis adjusted for the sale of its aerospace and defense business. GAAP gross margin increased to 36.9% from 35.5% year-over-year, while non-GAAP gross margin reached 39.0%. GAAP earnings per share were $0.76, up 71% year-over-year, and non-GAAP EPS were $1.29, up 35% year-over-year. The company attributed strong performance to demand in its datacenter and communications segment. Additionally, an analyst increased Coherent's price target by 22.20% to $254.69. Despite these positive financial results and the price target increase, the stock declined 6.8%.
Read full analysisCoherent Corp. reported second quarter fiscal 2026 results on February 4, 2026. The company posted revenue of $1.69 billion, representing 17% year-over-year growth, or 22% on a pro forma basis adjusted for the sale of its aerospace and defense business. GAAP gross margin increased to 36.9% from 35.5% year-over-year, while non-GAAP gross margin reached 39.0%. GAAP earnings per share were $0.76, up 71% year-over-year, and non-GAAP EPS were $1.29, up 35% year-over-year. The company attributed strong performance to demand in its datacenter and communications segment. Additionally, an analyst increased Coherent's price target by 22.20% to $254.69. Despite these positive financial results and the price target increase, the stock declined 6.8%.
Coherent Corp. is a global leader in photonics, producing lasers, optical components, and semiconductor materials used in datacenters, telecommunications, and industrial applications. The company's datacenter and communications segment has been its primary growth driver, with CEO Jim Anderson citing strong AI-related demand. Today's decline came after a sharp multi-week rally that had priced in much of the recent earnings strength and analyst optimism.