Coherent Corp (COHR) Q3 2026 Financial Results Summary

Release Date: May 6, 2026

Coherent Corp. (NYSE: COHR) reported its financial results for the third quarter of fiscal year 2026, which ended on March 31, 2026. The company achieved significant growth and profitability, reflecting strong demand across its datacenter and communications businesses.

Summary of Key Financial Metrics

• Revenue
  • Q3 2026: $1.81 billion
  • Year-over-Year Growth: Increased by 21% from Q3 2025
  • Pro Forma Growth: Increased by 27% after adjustments
• Gross Margin
  • GAAP Gross Margin:
    • Q3 2026: 37.7%
    • Year-over-Year Growth: Improved by 243 basis points (bps) from Q3 2025
  • Non-GAAP Gross Margin:
    • Q3 2026: 39.6%
    • Year-over-Year Growth: Improved by 105 bps from Q3 2025
• Earnings Per Share (EPS)
  • GAAP EPS:
    • Q3 2026: $0.97
    • Year-over-Year Growth: Increased by $1.08 from Q3 2025
  • Non-GAAP EPS:
    • Q3 2026: $1.41
    • Year-over-Year Growth: Increased by $0.50 from Q3 2025

Financial Commentary

Jim Anderson, CEO, commented on the robust demand particularly within the AI datacenter infrastructure, allowing the company to scale its operations to match this demand effectively.

CFO Sherri Luther stated that the significant growth in revenue was supported by gross margin expansion, reflecting effective cost management amidst rising demand.

Other Financial Highlights

• Operating Income:
  • Q3 2026: $200 million, reflecting operational effectiveness.
• Cash and Cash Equivalents:
  • As of March 31, 2026: $1.59 billion
  • Increase: Up significantly compared to previous quarters, positively impacting liquidity.

Shareholder Returns

• Dividends:
  • Coherent Corp. did not declare any dividends in Q3 2026. Previous dividends on preferred stock in Q2 were adjusted, suggesting a strategic focus on reinvestment.
• Share Repurchase:
  • There was no indication of share repurchase activity in Q3 2026 mentioned in the report.

Income Statement Overview

• Total Revenues for Q3 2026: $1.81 billion
• Cost of Goods Sold: $1.13 billion
• Research and Development Costs: $186 million
• Total Expenses: $1.62 billion
• Net Earnings Available to Common Shareholders: $191.4 million

Business Outlook

For Q4 of fiscal 2026, Coherent expects:

• Revenue Guidance: Between $1.91 billion and $2.05 billion.
• Expected Gross Margin: Between 39.0% and 41.0% on a non-GAAP basis.
• Total Operating Expenses: Estimated between $360 million and $380 million.

Conclusion

Coherent Corp. reported a strong third quarter in fiscal 2026, driven by substantial revenue growth and expanding profit margins. The company's strategic focus on AI infrastructure has positioned it well to leverage ongoing market demand, balancing growth with prudent financial management. The lack of declared dividends indicates a solid commitment to reinvesting in the company's growth initiatives.

Here are the extracted tables in Markdown format:

Condensed Consolidated Statements of Earnings

Amounts in millions

$ Millions, except per share amounts (unaudited)	Mar 31, 2026	Dec 31, 2025	Mar 31, 2025
Revenues	$1,805.6	$1,685.6	$1,497.9
Cost of goods sold	1,125.7	1,062.8	970.2
Research and development	186.0	165.7	150.7
Selling, general and administra…	267.6	258.5	231.4
Restructur… charges	34.4	3.6	73.8
Impairment of assets held-for-s…	—	11.0	—
Gain on sale of business	(8.9)	—	—
Interest expense	44.6	45.9	57.3
Other expense (income), net	(28.1)	(29.9)	4.6
Total Costs, Expenses, & Other Expense	1,621.3	1,517.6	1,488.0
Earnings Before Income Taxes	184.3	168.0	9.9
Income Taxes	2.7	24.2	8.1
Net Earnings	181.7	143.8	1.8
Net Loss Attributab… to Noncontrol… Interests	(9.7)	(2.9)	(13.9)
Net Earnings Attributab… to Coherent Corp.	191.4	146.7	15.7
Less: Dividends on Preferred Stock	—	1.6	32.7
Net Earnings Available to the Common Shareholde…	$191.4	$145.1	$(17.0)
Basic Earnings Per Share	$1.01	$0.87	$(0.11)
Diluted Earnings Per Share	$0.97	$0.76	$(0.11)
Average Shares Outstanding - Basic	190.2	167.5	155.2
Average Shares Outstanding - Diluted	196.4	192.8	155.2

* Amounts may not recalculate due to rounding.

Condensed Consolidated Balance Sheets

Amounts in millions

$ Millions (unaudited)	Mar 31, 2026	Jun 30, 2025
Assets
Current Assets
Cash and cash equivalents	$1,592.7	$909.2
Restricted cash, current	42.0	8.9
Short-term investments	825.0	—
Accounts receivable	1,187.9	964.1
Inventories	2,126.8	1,437.6
Prepaid and refundable income taxes	45.5	55.8
Prepaid and other current assets	625.3	551.6
Total Current Assets	6,445.2	3,927.2
Property, plant & equipment, net	2,420.1	1,877.5
Goodwill	4,402.4	4,471.1
Other intangible assets, net	2,958.2	3,204.7
Deferred income taxes	72.1	53.4
Restricted cash, non-current	591.0	714.8
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