Home / Business and Economy / Coherent Corp AI Surge: Q3 Earnings Skyrocket
Coherent Corp AI Surge: Q3 Earnings Skyrocket
31 May
Summary
- Coherent's Q3 FY2026 revenue reached $1.81 billion, a 21% increase.
- AI data center buildout significantly drove revenue growth in Q3 FY2026.
- Rosenblatt raised Coherent's price target to $425 with a Buy rating.
Coherent Corp (NYSE:COHR) announced impressive financial results for its third quarter of fiscal year 2026, reporting $1.81 billion in income. This figure represents a 21% increase compared to the same period last year and a 7% rise from the previous quarter. Company executives attributed this substantial revenue growth primarily to the ongoing buildout of AI data centers.
The Data Center & Communications segment, which accounts for 75% of Coherent's total revenue, experienced a remarkable year-over-year growth of over 40%. Non-GAAP earnings per share also exceeded expectations, jumping 55% year over year to $1.41. This performance was bolstered by top-line revenue growth, improved gross margins, and a reduced interest burden.
Looking ahead, Coherent's strategic ramp-up in producing epitaxial modulated lasers on larger 6-inch wafers is identified as a key growth catalyst. This manufacturing advancement is anticipated to boost transceiver sales and enhance gross margins in the upcoming fourth quarter of fiscal year 2026. Analysts at Rosenblatt have expressed confidence, raising their price target on Coherent Corp. to $425 while reaffirming their Buy rating.
