Coherent Q3 revenue beats estimates on datacenter demand

Coherent

06/05/2026 21:16

Overview

US photonics firm's fiscal Q3 revenue rose 21% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q3 beat analyst expectations

Company cites strong datacenter and communications demand for quarterly growth

Outlook

Coherent expects Q4 revenue between $1.91 bln and $2.05 bln

Company sees Q4 non-GAAP gross margin of 39.0% to 41.0%

Coherent forecasts Q4 non-GAAP EPS between $1.52 and $1.72

Result Drivers

DATACENTER & COMMUNICATIONS DEMAND - Co said exceptionally strong demand in datacenter and communications businesses drove revenue growth

CAPACITY EXPANSION - Co is expanding manufacturing capacity to meet rising AI datacenter infrastructure demand

MARGIN EXPANSION - Co attributed year-over-year EPS growth to significant revenue growth and gross margin expansion

Company press release: ID:nGNX2NrgYm

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.81 bln
$1.78 bln (18 Analysts)
Q3 Adjusted EPS
Beat
$1.41
$1.40 (18 Analysts)
Q3 Adjusted Net Income
Beat
$276 mln
$272.21 mln (16 Analysts)
Q3 Adjusted Operating Income
Miss
$366 mln
$372.31 mln (16 Analysts)
Q3 Adjusted Operating Margin
20.30%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 6 "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 is $337.50, about 0.5% above its May 5 closing price of $335.73

The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 36 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)