COHR
Coherent Corp.

Coherent Corp.COHR

Technology · Scientific & Technical Instruments
192.81USD
+13.58%
Nov 08, 2026
COHR overview ready
Vertically Integrated Photonics Supplier for AI Data-Center Interconnects
Vertically integrated photonics supplier to data-center and communications markets, manufacturing optical transceivers and critical optical components—including indium-phosphide lasers, photodiodes, silicon-photonics-related products, optical amplifiers, and networking subsystems—for AI-cluster and data-center interconnect applications.
Primary theme is lagging
Optical / Photonics is lagging (-26.6pp vs SPY over 21 sessions; 1 of 12 members ahead of SPY).
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Fair valuation
The price broadly reflects the strength of its balance sheet, with upside and risk reasonably balanced.
Low free cash flow yield
Free cash flow yield is weak.
Primary risk
Exposure to cyclical capital spending in data centers and communications.
Market Nov 6Filing Sep 30Price action Nov 7Research Sep 30

Conviction Level

PriceAction1.4BusinessPerformance7.0BusinessQuality4.9Valuation5.8ThemeMomentum1.0Improving — Revenue growth has accelerated across 4 consecutive quarters, rising from +18% to +50% year over year. Diluted EPS is up 60% year over year at $1.90. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−26.6pp
Theme return
−31.6%
Beating SPY
1 of 12
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$38.0B
Avg Volume (60D)
7.8M
60 sessions
Revenue Growth YoY
+22.5%
FY2026 vs FY2025
Gross Margin
+38.2%
Operating Margin
+15.1%
Trailing twelve months
Free Cash Flow Yield
-4.8%
Distance from 200DMA
-35.0%
Next Earnings
2027-02-03
P/E
39.4x
EV / Sales
5.1x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Improving

Revenue growth has accelerated across 4 consecutive quarters, rising from +18% to +50% year over year. Diluted EPS is up 60% year over year at $1.90.

Latest reported: Q1 FY2027, ended Sep 30
Revenue growthAccelerating
+50%
$2.37B in Q1 FY2027 · YoY
YoY growth, last 4 quarters
  1. +18%
  2. +21%
  3. +34%
  4. +50%
Earnings growthGrowing
+60%
Diluted EPS $1.90 vs $1.19 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. +73%
  2. n/a
  3. n/a
  4. +60%
Operating marginNot enough data
—
No year-ago comparison
Profit is not fully converting to cash
The share count is rising

Business Quality

4.9 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

One of the two valuation perspectives says cheap; own history is the dissenting view. The published stance is held at fair because no positive free cash flow behind the low multiple.
Coherent Corp. has a Fair valuation stance because the price broadly reflects the strength of its balance sheet, with upside and risk reasonably balanced. It trades at 5.1x revenue, broadly in line with what the business currently supports.

What changed

  • COHR rose 13.6% in one session
    COHR closed +13.6% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
Vertically integrated photonics supplier to data-center and communications markets, manufacturing optical transceivers and critical optical components—including indium-phosphide lasers, photodiodes, silicon-photonics-related products, optical amplifiers, and networking subsystems—for AI-cluster and data-center interconnect applications.
Opportunity
High opportunity
Accelerator-cluster spending on high-bandwidth optical links, signal integrity, and AI-fabric connectivity as electrical copper interconnects become less practical at rising bandwidth, reach, and power requirements.
Key risk
Exposure to cyclical capital spending in data centers and communications.

Economic classification

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Business & Markets

Technology · Scientific & Technical Instruments
What they do

Coherent Corp. develops, manufactures, and sells lasers, optical components, and photonic systems globally, focusing on integrated photonics for data-center and communications markets.

How it earns

The company generates revenue primarily through transactional sales of optical devices and systems to industrial and communications customers.

Products & services
Lasers
Optical transceivers
Photonic components (detectors, passive optics, thermal solutions, PICS)
Silicon photonics products
Optical amplifiers
Optical line systems
Multi-rail platforms
Customers & end markets
Data centers
Communications infrastructure providers
AI compute infrastructure operators
Market position

A vertically integrated photonics supplier with a strong position in data-center and communications optical components.

Demand drivers
Medium cyclicality

Demand is linked to capital spending cycles in data centers and communications infrastructure, which can be volatile.