Coherent (COHR)
Coherent (COHR) makes the engineered materials, indium-phosphide lasers, and 1.6T transceivers that go inside AI data-center optical interconnects. In ETFpedia it represents the Optical Networking & Photonics concept, because datacenter and communications demand now drives about three-quarters of its revenue, and management says orders reach into 2028.
| Ticker | COHR |
|---|---|
| Exchange | NYSE |
| Sector | Technology · Photonics & Lasers |
| Country | United States |
| Held by ETF | KODEX US AI Optical Communication Network ETF (0173Y0) |
| Last updated | 2026-06-04 |
Next event:Next earnings · fiscal Q4 & full-year FY2026, estimated · Date is analyst/calendar-estimated; confirm on Coherent IR. Last report: fiscal Q3 2026 on 2026-05-06. (source)
Latest reported quarter:Fiscal Q3 2026 (ended Mar 31, 2026) (reported2026-05-06)
Coherent reported record revenue of $1.81 billion, up 21% year over year (27% pro forma), with non-GAAP EPS of $1.41 and non-GAAP gross margin of 39.6%, driven by datacenter and communications demand that now makes up about three-quarters of sales.
| Revenue | $1.81B+21%YoY · +27% pro forma; record |
|---|---|
| Non-GAAP EPS | $1.41 |
| GAAP EPS | $0.97 |
| Non-GAAP gross margin | 39.6% · +105 bps YoY; GAAP 37.7% (+243 bps) |
| Datacenter & Communications revenue | $1,361.6M · ~75% of total; vs $968.7M a year ago (>40% YoY) |
Revenue by segment
| Datacenter & Communications | $1,361.6M · ~75%of revenue>+40% YoY |
|---|---|
| Industrial | $444.0M · ~25%of revenue |
Guidance:Fiscal Q4 2026 (ending Jun 30, 2026)
| Revenue | $1.91B–$2.05B |
|---|---|
| Non-GAAP gross margin | 39%–41% |
| Non-GAAP EPS | $1.52–$1.72 |
Coherent guides one quarter ahead; it does not issue full-year numeric guidance.
Recent & upcoming events
- · NVIDIA invests $2 billion in Coherent.Strategic partnership adds a multibillion-dollar purchase commitment and NVIDIA access to five additional Coherent co-packaged-optics product families. (source)
- · OFC 2026 optical showcase.Unveiled 3.2T (400G/lane) and 1.6T OSFP transceivers plus CPO architectures, and co-founded the XPO pluggable MSA for 12.8 Tbps liquid-cooled modules. (source)
- · Beat-and-raise: record fiscal Q3 2026.Revenue $1.81B (+21% YoY) with margin expansion and raised Q4 guidance; management cited record bookings and order visibility into calendar 2028. (source)
Coherent reports two end-market segments (Datacenter & Communications, Industrial); the legacy Networking/Materials/Lasers split is no longer disclosed.
Figures are as of 2026-06-03 and reflect the most recent public filings/IR releases; they are updated after each earnings report.
What does Coherent do?
Coherent spans engineered materials, lasers, and optoelectronic components used across communications, industrial, and electronics markets. The piece that matters most for AI is its indium-phosphide (InP) lasers, the light source inside the optical transceivers that connect data-center servers, and a fast-ramping line of 800G and 1.6T transceivers. As of fiscal Q3 2026 the company reports two end-market segments, Datacenter & Communications and Industrial, with the former at about 75% of revenue (SEC 8-K, May 6, 2026).
How is AI driving Coherent’s business?
Every optical transceiver needs a laser, and Coherent is a leading source of them, which puts it upstream of the whole optical build-out. In fiscal Q3 2026 its Datacenter & Communications revenue reached $1,361.6 million, up from $968.7 million a year earlier, a gain of more than 40% year over year (SEC 8-K, May 6, 2026), with the communications sub-line up about 60% (earnings call, May 6, 2026). InP is an industry-wide bottleneck, so Coherent is racing to add capacity, on track to double internal InP output by the end of calendar 2026, a quarter ahead of plan, and to more than double again by the end of 2027.
Customer demand remains exceptionally strong with no signs of attenuation, with orders now reaching into calendar 2028.
— Jim Anderson, CEO, Coherent (fiscal Q3 2026 earnings call)
What did Coherent report most recently?
In fiscal Q3 2026 (the quarter ended March 31, 2026), Coherent posted record revenue of $1.81 billion, up 21% year over year (27% pro forma), with non-GAAP EPS of $1.41 and non-GAAP gross margin of 39.6%, up 105 basis points (SEC 8-K).
We delivered another quarter of strong financial performance, with accelerating revenue growth, expanding margins, and improving profitability, driven by exceptionally strong demand across our datacenter and communications businesses.
— Jim Anderson, CEO, Coherent (fiscal Q3 2026 results)
What is Coherent’s guidance?
For fiscal Q4 2026 (ending June 30, 2026), Coherent guided revenue to $1.91–2.05 billion, non-GAAP gross margin to 39–41%, and non-GAAP EPS to $1.52–1.72 (SEC 8-K). The company guides one quarter ahead rather than for the full year, and management called the June quarter “a new inflection point” in its revenue-growth rate.
Why did NVIDIA invest in Coherent?
On March 2, 2026, NVIDIA agreed to invest $2 billion in Coherent, paired with a multibillion-dollar purchase commitment and access to five additional Coherent co-packaged-optics product families for next-generation data-center architecture (NVIDIA IR). At OFC 2026 the same month, Coherent showed 3.2T and 1.6T transceivers and helped found the XPO pluggable optics standard, signals that it intends to lead the next interconnect generation, not just supply the current one.
What are the risks for Coherent?
- InP capacity execution. Demand is gated by how fast Coherent can expand indium-phosphide output; slippage caps revenue.
- Customer concentration. A handful of AI-data-center customers drives much of the growth, so orders can be lumpy.
- Technology timing. Co-packaged-optics revenue is expected to scale only from late 2026 into 2027; a faster or slower transition reshuffles winners.
- Valuation. Analyst price targets have run up sharply, leaving little room for a demand air-pocket.
Related securities, concepts & terms
- AI Infrastructureparent
- Optical Networking & Photonicsparent
- Ciena (CIEN)sibling
- Lumentum (LITE)sibling
Related indices & ETFs
- KODEX US AI Optical Communication Network ETF (0173Y0) · Samsung Asset Management (KODEX)Tracks the Akros U.S. AI Optical index, which includes this company.
Frequently asked questions about Coherent
What does Coherent do?
Coherent makes engineered materials, lasers, and optoelectronic components, including the indium-phosphide (InP) lasers and 1.6T transceivers that go inside AI data-center optical interconnects. Datacenter & communications is now about 75% of its revenue.
When does Coherent report its next earnings?
Coherent is expected to report fiscal Q4 and full-year 2026 results around August 13, 2026. That date is analyst/calendar-estimated, so confirm it on Coherent's investor-relations site. It last reported fiscal Q3 2026 on May 6, 2026.
What was Coherent's latest quarterly revenue?
Coherent reported record revenue of $1.81 billion in fiscal Q3 2026 (ended March 31, 2026), up 21% year over year (27% pro forma), with non-GAAP EPS of $1.41 and non-GAAP gross margin of 39.6% (GAAP gross margin 37.7%, up 243 basis points). Datacenter & Communications revenue was $1,361.6 million, up from $968.7 million a year earlier.
What is Coherent's guidance?
For fiscal Q4 2026, Coherent guided revenue to $1.91–2.05 billion, non-GAAP gross margin to 39–41%, and non-GAAP EPS to $1.52–1.72. The company guides one quarter at a time rather than for the full year.
How is Coherent connected to NVIDIA?
On March 2, 2026, NVIDIA agreed to invest $2 billion in Coherent and add a multibillion-dollar purchase commitment, along with access to five additional Coherent co-packaged-optics product families for next-generation AI data-center architecture.
Why is Coherent an AI optical networking play?
Every optical transceiver needs a laser, and Coherent is a leading source of indium-phosphide lasers and 1.6T transceivers. Its datacenter & communications business grew over 40% year over year, and management says orders now reach into calendar 2028.
Sources & references
- Coherent Corp reports third quarter fiscal 2026 results (SEC 8-K, Exhibit 99.1) · Coherent Corp / SEC EDGAR, 2026-05-06
- Coherent Q3 fiscal 2026 earnings conference call webcast · Coherent Corp, 2026-05-06
- NVIDIA and Coherent announce strategic partnership and $2 billion investment · NVIDIA Corporation, 2026-03-02
- Coherent to unveil breakthrough AI-scale optical innovations and industry leadership at OFC 2026 · Coherent Corp, 2026-03-17
- Coherent Corp · investor relations · Coherent Corp, 2026-06-02
- NYSE listed company information · COHR · New York Stock Exchange, 2026-06-02