Coherent Inc Beats Q1 Estimates and Raises Growth Guidance

Coherent Inc reported first-quarter fiscal year 2027 results that exceeded analyst expectations across all metrics. The company posted earnings per share of $2.09 and revenue of $2.37 billion, representing a 50% year-over-year increase. This growth was primarily driven by a 79% surge in revenue from datacenter and communications segments.

Following the results, the company raised its guidance, projecting pro forma growth for fiscal year 2027 to exceed 60%. Coherent Inc also announced a $20 billion deal for PhotonLink, scheduled to begin in early 2028. To support future growth, the company entered into an anchor agreement with Nvidia Inc to ramp up co-packaged optics and near-packaged optics.

Despite the positive financial data and raised outlook, the company's stock price fell to $167.49 on November 5, 2026. Market analysts attributed the decline to valuation compression and high prior expectations. Investors also remain divided over the timeline for the company to achieve its 45% gross margin target.