Coherent stock jumped 8.8% after the company reported fourth-quarter fiscal 2026 earnings that beat Wall Street estimates, driven by surging demand for optical components used in artificial intelligence data centers.
The photonics company reported earnings per share that exceeded analyst expectations, with revenue of approximately $1.98 billion for the quarter ended June 30, 2026. The strong results reflected explosive growth in the company’s most profitable segment.
Coherent’s Datacenter and Communications segment accounted for 75% of total revenue, up sharply from 41% a year earlier, as AI infrastructure buildouts accelerated globally. Revenue in that segment grew 40.6% year-over-year to $1.361 billion, according to retrieved earnings data.
The company’s overall revenue surged 109% year-over-year, significantly outpacing the broader semiconductor and photonics industries. This growth trajectory reflects what CEO James Anderson has described as an inflection point in AI demand for optical networking components that route data between servers in massive data centers.
Analysts had anticipated strong results heading into the report. The consensus estimate called for revenue of $1.98 billion and earnings per share of $1.62, sitting at the midpoint of Coherent’s own guidance range of $1.52 to $1.72 per share issued in May. The company has now beaten consensus earnings estimates in each of the last seven quarters.
Coherent’s performance underscores the central role optical components play in AI infrastructure. As companies like Nvidia, Meta, and Google expand data center capacity to train and deploy large language models, they require specialized photonics equipment to manage massive data flows between processors. Coherent, along with competitors like Lumentum and IPG Photonics, supplies critical components for this buildout.
The stock’s post-earnings move follows a volatile period ahead of the report. Shares had rallied 13% in early August on optimism about AI demand and a reported policy proposal affecting Chinese optical competitors, then pulled back 12% on profit-taking in the two days before earnings as investors took gains from the stock’s year-to-date run of approximately 105%.
Sources
- Investing.com — confirmed earnings beat and revenue topped estimates
- 247 Wall Street — reported datacenter mix at 75% of revenue, EPS beat 8.79%, revenue up 109.34% YoY
- Perplexity Finance — provided consensus estimates of $1.62 EPS and $1.98B revenue, noted seven-quarter earnings beat streak
- Yahoo Finance — reported stock climbed 9% following earnings announcement
- Benzinga — confirmed analyst expectations of $1.62 EPS and $1.98B revenue
