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Sep 30
Coherent Q1 2026 Earnings Report
Coherent reported strong first quarter results with solid revenue growth and profitability driven by datacenter and communications demand.
Key Takeaways
Coherent delivered a robust Q1 FY26 with $1.58B in revenue and a return to profitability. AI-driven datacenter demand boosted earnings, and debt reduction strengthened the balance sheet.
Q1 revenue reached $1.58B, up from $1.35B last year.
GAAP net income was $226.3M, a significant improvement from a $25.9M profit last year.
Coherent generated $1.19 in GAAP EPS and $1.16 in non-GAAP EPS.
The company reduced its debt by $400M and completed the sale of its Aerospace & Defense business.
Coherent
Coherent
Coherent Revenue by Segment
Revenue by Segment
Datacenter & Comms Revenue
CapyFin.comIndustrial Revenue
CapyFin.com Forward Guidance
Coherent expects Q2 FY26 revenue between $1.56B and $1.70B, with non-GAAP EPS in the range of $1.10 to $1.30 and gross margins of 38–40%.
Positive Outlook
- Continued strength in datacenter and communications demand.
- Expected non-GAAP gross margin improvement to 38–40%.
- Non-GAAP EPS forecasted between $1.10 and $1.30.
- Operating expenses expected to stay within $300M–$320M.
- Normalized tax rate projected between 18%–20%.
Challenges Ahead
- No guidance provided for GAAP metrics due to forecast complexity.
- Potential exposure to restructuring and integration expenses.
- Interest expense remains elevated despite refinancing.
- Volatility in foreign exchange could affect results.
- Slower performance expected in the Industrial segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income