Headquartered in Saxonburg, Pennsylvania, Coherent Corp. (COHR) is a global photonics company developing lasers, optical communications products, semiconductor technologies, and instrumentation. Its technologies support datacenter, communications, industrial, electronics, and healthcare applications, enabling advanced manufacturing and connectivity. It has a market capitalization of $69.6 billion.
Shares of this leading photonics company have considerably outperformed the broader market over the past year. COHR has gained a staggering 187% over this period, while the broader S&P 500 Index ($SPX) has climbed nearly 20.6%. The stock has continued to outperform the index in 2026, gaining 77.3% year to date, compared with the S&P 500’s 13.9% gain over the same period.
COHR has also outperformed the State Street Technology Select Sector SPDR ETF (XLK), which has gained 42.2% over the past year and 32.5% year-to-date.
On August 12, Coherent reported its Q4 FY2026 earnings, sending shares up about 8.2% as results topped estimates, while investors weighed elevated expectations following the strong run in the stock. Revenue grew 33.8% year-over-year to $2.05 billion, led by strength in Datacenter & Communications. Non-GAAP EPS rose 74% from the year-ago quarter to $1.74.
For the first quarter of fiscal 2027, Coherent guided revenue to $2.2 billion to $2.4 billion and non-GAAP EPS to $1.85 to $2.05, with non-GAAP gross margin expected between 39.5% and 41.5%.
Analysts expect COHR’s EPS to increase 57.6% year-over-year to $7.61 for the fiscal year ending in June 2027. COHR has surpassed consensus EPS estimates in three of the past four quarters, while missing expectations in one quarter.
Based on the 23 analysts covering COHR stock, the consensus rating is a “Strong Buy.” The rating is based on 16 “Strong Buy” ratings, one “Moderate Buy” rating, and six “Hold” ratings.
This consensus is more bearish than it was a month ago, when the stock had 17 “Strong Buy” ratings.
On August 13, B. Riley raised its price target on Coherent from $309 to $345 while maintaining a “Neutral” rating, citing robust data center demand and the company’s more than $3 billion fiscal Q4 2027 revenue outlook as drivers of potential earnings upside.
Based on analysts’ estimates, the mean price target of $388.25 implies a 18.6% premium to COHR’s current share price, while the Street-high price target of $465 suggests a 42.1% upside.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
/The%20sign%20for%20Marvell%20Technology%20out%20front%20of%20a%20corporate%20office%20by%20Valeriya%20Zankovych%20via%20Shutterstock.jpg)
/The%20front%20of%20a%20Rocket%20Lab%20corporate%20office%20by%20Emagnetic%20via%20Shutterstock.jpg)
