Coherent’s COHR fiscal fourth-quarter performance clearly points to one growth driver: datacenter and communications demand. Revenues reached $1.62 billion in the fourth quarter of fiscal 2026, rising from $1.36 billion in the preceding quarter and $1.02 billion in the year-ago period. The sequential increase was about $253 million, while the year-over-year gain approached $600 million.
That expansion lifted Coherent’s total revenues to $2.05 billion, up from $1.81 billion in the third quarter and $1.53 billion a year earlier. Datacenter and communications therefore accounted for nearly 79% of fourth-quarter revenue, compared with roughly 67% in the prior-year quarter. Its growing contribution shows that the revenue mix became more concentrated in this market.
The five-quarter progression reinforces the trend. Datacenter and communications revenues advanced every quarter, climbing from $1.02 billion in the fourth quarter of fiscal 2025 to $1.09 billion, $1.21 billion, $1.36 billion and finally $1.62 billion. Total revenues followed the same upward direction, moving from $1.53 billion to $1.59 billion, $1.69 billion, $1.81 billion and $2.05 billion.
Industrial revenues moved differently. It declined in each quarter, falling from $511 million to $431 million across the displayed period. Consequently, the $517 million increase in total revenues between the two fourth quarters came entirely from datacenter and communications, which more than offset an $80 million industrial decline. The chart thus presents Coherent’s recent growth as a datacenter-led story, with that segment carrying the company’s overall quarterly revenue momentum.
How Are Peers Positioned?
Lumentum Holdings LITE is benefiting from the same optical transition, with fiscal fourth-quarter revenues soaring 109% to $1.01 billion. Lumentum forecasts $1.225-$1.275 billion next quarter as AI demand accelerates, though Lumentum must scale supply smoothly.
Fabrinet FN, a manufacturer of complex optical products, delivered 45% quarterly revenue growth to a record $1.32 billion. Fabrinet anticipates another sequential increase, but customer concentration and elevated inventories deserve attention. Even so, Fabrinet remains well placed to benefit from expanding optical deployments.
COHR’s Price Performance & Estimates
COHR stock has gained 171% over the past year against the industry’s 22.5% decline.
From a valuation standpoint, COHR trades at a forward price-to-earnings ratio of 28.65X, above the industry’s 20.5X. It carries a Value Score of D.
The Zacks Consensus Estimate for COHR’s fiscal 2027 earnings increased over the past 60 days.
COHR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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