Global Finance News
13 Aug 2026, 10:08
Coherent Stock Falls 4.8% Despite Strong AI-Driven Growth and Record Revenue
Coherent (NYSE: COHR) shares fell 4.8% in premarket trading Thursday despite reporting strong fiscal fourth-quarter results, with rapid AI data center demand driving revenue growth and margin expansion.
Fourth-quarter revenue reached $2.05 billion, up 34% year over year and 42% on a pro forma basis. Non-GAAP EPS rose to $1.74, up $0.74 from a year earlier, while non-GAAP gross margin expanded 215 basis points to 40.2%.
AI Optical Demand Remains a Major Growth Driver
Coherent continues to benefit from the rapid expansion of AI infrastructure. The company said customer demand remains exceptionally strong as AI data center architectures increasingly shift from copper toward optical connectivity, where Coherent supplies photonic components and technologies.
Management expects that momentum to continue into fiscal 2027, supported by additional manufacturing capacity and new growth platforms.
For the first quarter, Coherent expects revenue of $2.2 billion to $2.4 billion and non-GAAP EPS of $1.85 to $2.05. Non-GAAP gross margin is projected at 39.5%-41.5%.
Despite the strong growth outlook, the 4.8% premarket decline suggests expectations were already elevated following Coherent's AI-driven momentum. Investors may also be reacting to the Q1 margin outlook, whose midpoint of 40.5% represents only modest improvement from Q4's 40.2%, alongside increased spending to expand manufacturing capacity.
Still, Coherent remains strongly positioned within the AI infrastructure sector as rising bandwidth requirements increase demand for high-speed optical connectivity.
Coherent (NYSE: COHR) shares fell 4.8% in premarket trading Thursday despite reporting strong fiscal fourth-quarter results, with rapid AI data center demand driving revenue growth and margin expansion.
Fourth-quarter revenue reached $2.05 billion, up 34% year over year and 42% on a pro forma basis. Non-GAAP EPS rose to $1.74, up $0.74 from a year earlier, while non-GAAP gross margin expanded 215 basis points to 40.2%.
AI Optical Demand Remains a Major Growth Driver
Coherent continues to benefit from the rapid expansion of AI infrastructure. The company said customer demand remains exceptionally strong as AI data center architectures increasingly shift from copper toward optical connectivity, where Coherent supplies photonic components and technologies.
Management expects that momentum to continue into fiscal 2027, supported by additional manufacturing capacity and new growth platforms.
For the first quarter, Coherent expects revenue of $2.2 billion to $2.4 billion and non-GAAP EPS of $1.85 to $2.05. Non-GAAP gross margin is projected at 39.5%-41.5%.
Despite the strong growth outlook, the 4.8% premarket decline suggests expectations were already elevated following Coherent's AI-driven momentum. Investors may also be reacting to the Q1 margin outlook, whose midpoint of 40.5% represents only modest improvement from Q4's 40.2%, alongside increased spending to expand manufacturing capacity.
Still, Coherent remains strongly positioned within the AI infrastructure sector as rising bandwidth requirements increase demand for high-speed optical connectivity.
