Coherent Revenue Jumps 50 Percent to $2.37 Billion as AI Optics Demand Lifts Outlook

Coherent reported fiscal first quarter 2027 revenue of $2.37 billion, up 49.9 percent from a year earlier and 56 percent on a pro forma basis, beating consensus estimates of about $2.31 billion. Non-GAAP earnings per share were $2.09, up 80 percent from a year earlier.

The results were published on Wednesday, November 4, 2026, for the quarter ended September 30, 2026. The revenue figure cleared the consensus estimate by about $60 million, and the earnings figure cleared the range of estimates the reports carried, which ran from about $1.97 to $2.01 a share.

Earnings ahead of estimates

Non-GAAP earnings per share of $2.09 rose 80 percent from a year earlier and came in above consensus of about $1.97 to $2.01. GAAP earnings per share were $1.90, up from $1.19 a year earlier.

Chief executive Jim Anderson said the quarter marked a strong start to fiscal 2027, with pro forma revenue up 56 percent and non-GAAP earnings per share up 80 percent. On the outlook, he said: "We expect fiscal 2027 pro forma revenue growth to exceed 60%."

GAAP gross margin was 39.1 percent in the quarter and non-GAAP gross margin was 40.6 percent, according to the company release carried by FinancialContent.

Data centre and communications carried the quarter

Data centre and communications revenue reached $1.95 billion, up 79 percent from a year earlier. That segment accounted for 82 percent of total revenue, so most of the company total came from that one segment in this quarter.

The industrial segment moved the other way. Industrial revenue declined 14.8 percent to $418.6 million. Readers weighing the report have to hold both parts at once: the data centre and communications line grew fast enough to lift the whole company total by almost half from a year earlier, while the industrial line shrank.

The split also shows in the totals. Data centre and communications revenue of $1.95 billion plus industrial revenue of $418.6 million accounts for the reported $2.37 billion total, within rounding.

Guidance raised for the second quarter and the full year

For fiscal second quarter 2027, Coherent guided revenue to $2.55 billion to $2.75 billion. The company also guided non-GAAP gross margin of 40 percent to 42 percent and non-GAAP diluted earnings per share of $2.28 to $2.48.

The second quarter revenue range starts above the $2.37 billion reported for the first quarter. Its midpoint is $2.65 billion.

Coherent also raised its fiscal 2027 pro forma revenue growth outlook to above 60 percent. Management expects the company to reach its first $3 billion revenue quarter by the end of fiscal 2027.

Shares rose after hours

Coherent shares rose about 8 percent in after hours trading to about $211, after falling 6 percent in regular trading, according to Barron's. An after hours movers roundup reported a climb of about 7 percent. Both figures are reported here as the outlets stated them.

The market reaction followed a report in which revenue, earnings and guidance all came in above the estimates and outlook figures published before the release. The next test in the company own guidance is the second quarter range of $2.55 billion to $2.75 billion.