Overview
Coherent Q4 revenue of $1.53 bln beats analyst expectations, per LSEG data
Non-GAAP EPS of $1.00 for Q4 exceeds analyst estimates, per LSEG data
Co announces sale of Aerospace and Defense business to focus on growth areas
Outlook
Coherent expects Q1 2026 revenue between $1.46 bln and $1.60 bln
Company anticipates Q1 2026 non-GAAP gross margin of 37.5% to 39.5%
Coherent forecasts Q1 2026 EPS between $0.93 and $1.13
Company projects Q1 2026 operating expenses of $290 mln to $310 mln
Result Drivers
REVENUE GROWTH - Coherent achieved a record FY25 revenue of $5.81 bln, a 23% increase year-over-year, driven by strong performance in AI datacenters, according to CEO Jim Anderson
GROSS MARGIN EXPANSION - Co's non-GAAP gross margin expanded by 358 basis points to 37.9% in FY25, attributed to revenue growth and margin expansion, per CFO Sherri Luther
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $1.53 bln | $1.51 bln (18 Analysts) |
Q4 Adjusted EPS | Beat | $1 | $0.91 (18 Analysts) |
Q4 Adjusted Net Income | Beat | $192 mln | $145.90 mln (12 Analysts) |
Q4 Adjusted Operating Income | Beat | $275 mln | $272.80 mln (15 Analysts) |
Q4 Adjusted Operating Margin |
| 18.0% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Coherent Corp is $104.00, about 12.1% below its August 12 closing price of $116.56
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 15 three months ago
Press Release: ID:nGNX218124