Coherent Corp

Fiscal 26 delivered “record + leverage” performance (strong upside vs growth): - Full-year revenue $7.12B, +23% YoY (and +28% pro forma)—the first year Coherent exceeded $7B. - Non-GAAP EPS +59% (outpacing revenue), driven by gross margin expansion and operating leverage. - Q4 revenue $2.05B (+13% sequential, +34% YoY). Q4 non-GAAP EPS $1.74 (+74% YoY). - Gross margin improved: Q4 non-GAAP GM 40.2% (+66 bps QoQ, +215 bps YoY); FY26 GM 39.4% (+152 bps YoY).

Guidance for Q1 FY27 implies continued strong growth + margin progress (key numbers): - Revenue: $2.2B–$2.4B - Non-GAAP gross margin: 39.5%–41.5% - Non-GAAP operating expenses: $400M–$420M - Non-GAAP EPS: $1.85–$2.05 - Tax rate: 1.8%–? (management stated 1.8%–2.x%, with “1.82 thousand%” appearing in transcript—likely a transcription/format issue, but directionally “very low tax rate” was indicated).

Demand visibility is excellent; bookings + order coverage extend into 2028/decade (supporting the bullish outlook): - Management cited another quarter of record bookings and no attenuation in customer demand. - Order coverage through calendar 2027 is “exceptional,” with customers extending into calendar 28 and LTAs through the end of the decade. - Strategic positioning: photonics is described as foundational for AI data center optical connectivity; growth drivers include AI scale, copper-to-optical transition, and bandwidth/energy efficiency needs.