Overview

* Coherent Q4 revenue of $1.53 bln beats analyst expectations, per LSEG data

* Non-GAAP EPS of $1.00 for Q4 exceeds analyst estimates, per LSEG data

* Co announces sale of Aerospace and Defense business to focus on growth areas

Outlook

* Coherent expects Q1 2026 revenue between $1.46 bln and $1.60 bln

* Company anticipates Q1 2026 non-GAAP gross margin of 37.5% to 39.5%

* Coherent forecasts Q1 2026 EPS between $0.93 and $1.13

* Company projects Q1 2026 operating expenses of $290 mln to $310 mln

Result Drivers

* REVENUE GROWTH - Coherent achieved a record FY25 revenue of $5.81 bln, a 23% increase year-over-year, driven by strong performance in AI datacenters, according to CEO Jim Anderson

* GROSS MARGIN EXPANSION - Co's non-GAAP gross margin expanded by 358 basis points to 37.9% in FY25, attributed to revenue growth and margin expansion, per CFO Sherri Luther

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Beat $1.53 $1.51

Revenue bln bln (18

Analysts

)

Q4 Beat $1 $0.91

Adjusted (18

EPS Analysts

)

Q4 Beat $192 mln $145.90

Adjusted mln (12

Net Analysts

Income )

Q4 Beat $275 mln $272.80

Adjusted mln (15

Operatin Analysts

g Income )

Q4 18.0%

Adjusted

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electronic equipment & parts peer group is "buy"

* Wall Street's median 12-month price target for Coherent Corp ( COHR ) is $104.00, about 12.1% below its August 12 closing price of $116.56

* The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)