COHR · Coherent, Inc.

Coherent Corp. delivered strong Q3 FY2026 results with revenue of $1.81 billion, reflecting 20.5% year-over-year growth on a GAAP basis and 27% on a pro forma basis excluding divested businesses. This acceleration was primarily driven by robust demand in the Datacenter & Communications segment, which reached $1.36 billion, up significantly from $0.97 billion in the prior year, comprising 41% of total revenue compared to 25% previously. Industrial revenue declined to $444 million. Gross margins expanded meaningfully, with GAAP gross margin at 37.7% (up 243 bps Y/Y) and non-GAAP at 39.6% (up 105 bps Y/Y), benefiting from improved product mix and operational efficiencies. Operating income rose sharply to $201 million GAAP and $366 million non-GAAP, while net earnings attributable to Coherent surged to $191 million GAAP and $276 million non-GAAP, translating to GAAP EPS of $0.97 and non-GAAP EPS of $1.41, both substantially improved year-over-year. CEO Jim Anderson highlighted accelerating revenue growth, expanding margins, and profitability fueled by AI datacenter infrastructure scaling, with the company expanding capacity including doubling internal Indium Phosphide output by year-end. CFO Sherri Luther noted focus on capital investments for capacity amid strong demand visibility. Q4 guidance signals continued momentum with revenue expected at $1.91-$2.05 billion, non-GAAP gross margin 39.0%-41.0%, operating expenses $360-$380 million, tax rate 18%-20%, and non-GAAP EPS $1.52-$1.72. The investor presentation emphasizes strategic positioning in AI datacenters through partnerships like NVIDIA, scaling InP production, and new growth areas adding over $20B SAM.