Key Takeaways:
Coherent reported fiscal fourth-quarter revenue of $2.05 billion, beating estimates by 3 percent, yet shares slipped as much as 5 percent after hours.
"Fiscal 2026 was an outstanding year for Coherent, with record revenue, significant margin expansion, and non-GAAP EPS growth that was more than twice the rate of revenue growth," Chief Executive Officer Jim Anderson said.
Revenue rose 33.8 percent year over year from $1.53 billion, with non-GAAP gross margin expanding 215 basis points to 40.2 percent. Datacenter & Communications revenue reached $1.62 billion, or 79 percent of the total, up from 41 percent of revenue a year earlier. Industrial revenue fell to $430.5 million from $511.1 million.
For the first quarter of fiscal 2027, Coherent guided revenue of $2.2 billion to $2.4 billion and adjusted earnings of $1.85 to $2.05 per share, both above the $1.62 billion and $1.61 consensus. Full-year fiscal 2026 revenue totaled $7.12 billion, up 22.5 percent, with non-GAAP EPS of $5.61.
Shares had climbed 9 percent in regular trading to $354.03 before the release, extending a 206 percent gain over the past year. The after-hours pullback came even as the company beat on both lines, with options pricing a 15 percent post-print move. NVIDIA's $2 billion equity investment lifted cash to $3 billion and cut leverage to 0.5 times.
The selloff after a clean double beat suggests investors are weighing valuation, with the stock trading at 38 times forward earnings against a consensus price target of $394.62 from 17 buy ratings. Management said fiscal 2027 growth should exceed fiscal 2026's rate, backed by customer orders extending into calendar 2028. Investors will watch the earnings call at 4:30 p.m. ET for details on the NVIDIA revenue ramp and CPO timing.
This article is for informational purposes only and does not constitute investment advice.
