TLDR
- Coherent (COHR) reported fiscal Q1 revenue of $2.37 billion and adjusted EPS of $2.09, both above estimates.
- The stock fell about 6% in regular trading, then rose after hours on the results.
- Datacenter and communications revenue jumped 79% to $1.95 billion.
- Q2 guidance calls for revenue of $2.55 billion to $2.75 billion and EPS of $2.28 to $2.48.
- Northland upgraded the stock to Outperform with a $280 price target earlier this week.
Coherent (COHR) ended a rough regular session on a better note. The stock fell about 6% during the day, then bounced after the company posted its fiscal first-quarter results. Reports put the after-hours price near $211.
The optical networking company beat on both lines for the quarter that ended in September. Revenue came in at $2.37 billion, above the $2.30 billion to $2.31 billion analysts expected. That is up nearly 50% from a year ago.
Adjusted earnings per share landed at $2.09. Analysts were looking for roughly $1.98. That is a beat of about 10 cents.
COHERENT $COHR Q1’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $2.37B (Est. $2.31B) 🟢; +50% YoY
🔹 Adj. EPS: $2.09 (Est. $1.97) 🟢; +80% YoY
🔹 Non-GAAP Oper Income: $550M (Est. $527M) 🟢
🔹 Non-GAAP Gross Margin: 40.6% (Est. 40.4%) 🟢; +184 bps YoYQ2 Guide:
🔹 Adj. EPS: $2.28-$2.48… pic.twitter.com/fSFqsSeLsu— Wall St Engine (@wallstengine) November 4, 2026
The after-hours gains were reported differently by two outlets. One had the stock up 8%, while another had it up 4%. Either way, the move was a turnaround from the session.
A Rough Day Before the Report
The selloff came as investors worried about data center projects slowing. Those fears followed big Democratic wins in the midterm elections. Coherent sells transceivers, cables, and switches used in AI data centers, so it felt the pressure.
Other parts of the market told a different story. The S&P 500 and Nasdaq both finished higher on the day. Investors seemed to welcome clarity after the election.
Coherent, though, went the other way before its report. The stock closed the regular session down about 6%. That set a low bar heading into the numbers.
What Drove the Beat
The datacenter and communications segment led the way. Its revenue rose 79% from a year ago to $1.95 billion. That is a big chunk of the total.
CEO Jim Anderson pointed to a shift in how data centers connect. “As AI datacenters transition from copper to optical connectivity, Coherent’s broad photonics platform and manufacturing scale position us to help customers meet rising needs for bandwidth and energy efficiency,” he said. It is a pitch built on speed and power use.
Peer Fabrinet also set a friendly tone. It reported its own fiscal Q1 results on November 2. Revenue rose 51%, and its data center segment grew 78%.
Management also gave guidance that topped the current quarter’s results. Coherent expects second-quarter revenue of $2.55 billion to $2.75 billion. It sees EPS between $2.28 and $2.48.
Analysts had already started to move. Northland Capital Markets upgraded the stock to Outperform earlier this week. It set a $280 price target.
Northland pointed to the scarcity of indium phosphide device capabilities. That follows the Marvell and Lumentum deal. In its view, Coherent stands to benefit from the changed field.
Here is the quick recap on the numbers. Revenue was $2.37 billion, EPS was $2.09, and datacenter sales were $1.95 billion. Guidance for next quarter points higher on both revenue and earnings.
The stock sat near $211 in after-hours trading. Northland’s target of $280 is well above that level. Traders will see how the stock opens on Thursday.
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