Coherent Surges as Q1 Results, Outlook Cruise Past Estimates

Coherent shares surged 20% following strong first-quarter fiscal 2026 financial results and an even stronger forecast.

For the quarter ended September 30, the provider of high-speed optical hardware reported adjusted earnings per share of $1.16 versus the consensus estimate of $1.05. It reported GAAP EPS of $1.19, which crushed the $0.29 estimate.

Revenue for the quarter increased 17% year over year to total $1.58B compared to the $1.54B consensus.

Looking ahead, Coherent expects adjusted EPS ranging from $1.10 to $1.30 with a midpoint of $1.20 more than the $1.13 estimate. It projects revenue ranging from $1.56B to $1.7B with a midpoint of $1.63B well above the $1.56B consensus.

"Significant revenue growth and gross margin expansion drove a year-over-year increase in our GAAP and non-GAAP EPS," said Coherent CFO Sherri Luther. "During the quarter, we paid down $400 million of our debt. We also refinanced our debt, which will reduce our interest expense and further strengthen our balance sheet."