When did Coherent's sales acceleration first appear?

In the report filed on November 6, 2024, for its fiscal first quarter of 2025, revenue climbed 28.0% from a year earlier, up from 9.1% growth in the prior quarter.

How much did Coherent's data center business grow?

Its Datacenter & Communications segment brought in $5.3 billion in fiscal 2026, up from $3.8 billion the year before, out of total fiscal 2026 sales of $7.1 billion.

How has Coherent stock performed recently?

Coherent shares are down 6.5% over the past six months, while the S&P 500 is up 14.0% over the same period.

AI Stocks & MarketsAI Business & IndustryYahoo Finance AI2d agoOct 14, 2026, 10:01 JST

Coherent's 135.4% AI run was signaled in 2024

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3 Key Points

What happened
Coherent returned 135.4% in the twelve months to October 12, 2026, versus 17.3% for the S&P 500. Its November 6, 2024 filing already showed revenue up 28.0%.
Why it matters
Investors buying after October 2025 paid up for a stock that had already more than doubled, with the data center-driven margin and sales gains public about eleven months earlier.

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Context & Analysis

Coherent's run was not a surprise that appeared out of nowhere. The company's November 6, 2024 filing showed revenue growth accelerating to 28.0%, and management noted a wider non-GAAP gross margin on the same day's earnings call. Those disclosures were public roughly eleven months before October 2025, the start of the twelve-month stretch in which the stock returned 135.4%.

On a February 5, 2025 call, management said widening the gross margin would be a strategic focus. The operating margin reached 10.1% in the February 2025 report, up from 5.9% in the quarter filed in August 2024, and Coherent cut its debt leverage ratio to 2 times from 2.5 times by an August 13, 2025 call. Yet sales growth faded across 2025 filings, slowing to 16.4% in the August report, while the operating margin slipped to 9.5%. By fall 2025, the stock had already returned 120.7% over the prior six months.

The data center business then expanded significantly. Fiscal 2026 revenue growth reached 17.3%, 17.5%, 20.5% and 33.7% across the four quarters. Management guided to $2.2 billion to $2.4 billion for fiscal 2027's first quarter and said fiscal 2027 is basically booked out, with the operating margin over the latest twelve months at 12.7%. Despite that, the stock is down 6.5% over six months, leaving first-quarter revenue as the figure to watch.

FAQ

When did Coherent's sales acceleration first appear?: In the report filed on November 6, 2024, for its fiscal first quarter of 2025, revenue climbed 28.0% from a year earlier, up from 9.1% growth in the prior quarter.
How much did Coherent's data center business grow?: Its Datacenter & Communications segment brought in $5.3 billion in fiscal 2026, up from $3.8 billion the year before, out of total fiscal 2026 sales of $7.1 billion.
How has Coherent stock performed recently?: Coherent shares are down 6.5% over the past six months, while the S&P 500 is up 14.0% over the same period.

Yahoo Finance AIRead Original Article

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