Coherent, Inc. Q4 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Coherent (COHR) Q4 & FY2026 Earnings Summary

Overall Performance: Fiscal 2026 was a record year driven by AI data center and communications demand. Pro forma revenue grew 28% YoY to $7.12B. Non-GAAP EPS grew 59% YoY (more than 2x revenue growth). Company exited FY26 with debt leverage of 0.7x (vs. 2.0x at end of FY25).

Key Q4 FY2026 Results (vs. Prior Periods)

  • Revenue: $2.05B (+13% sequentially, +34% YoY; pro forma +14% seq / +42% YoY)
  • Non-GAAP Gross Margin: 40.2% (+66 bps seq, +215 bps YoY)
  • Non-GAAP Operating Margin: 21.8% (+150 bps seq, +380 bps YoY)
  • Non-GAAP EPS: $1.74 (+23% seq, +74% YoY)
  • Full-year Non-GAAP Gross Margin: 39.4% (+152 bps vs. FY2025)
  • Full-year Non-GAAP Operating Margin: 20.5% (+270 bps vs. FY2025)

Segment Highlights

  • Data Center & Communications (79% of Q4 revenue): +40% YoY for FY26. Q4 revenue +19% seq / +59% YoY. Data center sub-segment +24% seq / +66% YoY in Q4. Record bookings; visibility extends into 2028 with LTAs through 2030.
  • Industrial: Roughly flat YoY in both FY26 and Q4. Sequential growth in semiconductor and display capital equipment offset by broader industrial weakness.

Strategic Updates & Capacity

Professional feature The full AI summary covers key highlights, financial performance and analyst Q&A.
Operator: Greetings, and welcome to the Coherent Fourth Quarter and Fiscal Year 26 Earnings Call. It is now my pleasure to introduce your host, Mr. Paul Jonas Silverstein, Senior Vice President of Investor Relations for Coherent. Please go ahead. Paul Jonas Silverstein: Thank you, operator, and good afternoon, everyone. With me today are Jim Anderson, Coherent's CEO and Sherri R. Luther, Coherent's CFO. During today's call, we will provide a financial and business review of the fourth quarter of fiscal 26, and the business outlook for the first quarter of fiscal 27. Our earnings press release can be found in the Investor Relations section of our company website at coherent.com. I would like to remind everyone that during our conference call, you may make projections or other forward looking statements regarding future events or the future financial performance of the company. These are subject to a number of significant risks and uncertainties and our actual results may differ materially. For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release. Our most recent Forms 10 ks and 10 Q and the reports that we may file on Form 8 ks with the Securities and Exchange Commission. All our statements are made as of today, August 12, 2026, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During this call, we will discu
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