PRESS RELEASE COHERENT CORP. REPORTS FIRST QUARTER FISCAL 2027 RESULTS
• Q1 GAAP GROSS MARGIN OF 39.1%, INCREASED 254 bps Y/Y; Q1 NON-GAAP GROSS MARGIN OF 40.6%, INCREASED 184 bps Y/Y
• Q1 GAAP EPS OF $1.90, INCREASED $0.71 Y/Y; Q1 NON-GAAP EPS OF $2.09, INCREASED $0.93 Y/Y
SAXONBURG, Pa., November 4, 2026 (GLOBE NEWSWIRE) – Coherent Corp. (NYSE: COHR) (“Coherent,” “We,” or the “Company”), a global leader in photonics, announced financial results today for its first quarter of fiscal year 2027 ended September 30, 2026. Revenue for the first quarter of fiscal 2027 was $2.37 billion, with GAAP gross margin of 39.1% and GAAP net income of $1.90 per diluted share. On a non-GAAPbasis, gross margin was 40.6% with net income per diluted share of $2.09. “Q1 marked a strong start to fiscal 2027, with pro forma revenue up 56% year over year and non-GAAPEPS up 80%,” said Jim Anderson, CEO. “Our established businesses delivered strong growth, while new growth areas are beginning to ramp. 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. We expect fiscal 2027 pro forma revenue growth to exceed 60%.” Sherri Luther, CFO, said, “Our Q1 results delivered substantial operating leverage and durable gross margin expansion, driven by pricing optimization and cost improvements. This margin strength gives us the confidence to raise our longer-term target. We expect to achieve our first quarter with non-GAAPgross margin above 45% before the end of calendar 2028.” 1
Operating Income is defined as earnings before income taxes, interest (1) expense, and other expense or income, net.
The Company has disclosed financial measurements in this earnings release that present financial information that are considered to be non-GAAP financial measures. These measurements are not a substitute for GAAP measurements, although the Company’s management uses these measurements as an aid in monitoring the Company’s on-going financial performance. The non-GAAP net earnings attributable to Coherent Corp., the non-GAAP diluted earnings per share, the non-GAAP operating income, the non-GAAP gross margin, the non-GAAP research and development, the non-GAAP selling, general and administration, the non-GAAP operating expenses, the non-GAAP interest and other (income) expense, and the non-GAAP income taxes, measure earnings and operating income (loss), respectively, excluding non-recurring or unusual items that are considered by management to be outside the Company’s standard operation and excluding certain non-cash items. There are limitations associated with the use of non-GAAP financial measures, (1) including that such measures may not be entirely comparable to similarly titled measures used by other companies, due to potential differences among calculation methodologies. Thus, there can be no assurance whether (i) items excluded from the non-GAAP financial measures will occur in the future or (ii) there will be cash costs associated with items excluded from the non-GAAP financial measures. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by providing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures. Investors should consider adjusted measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP. All non-GAAP amounts exclude certain adjustments for share-based compensation, acquired intangible amortization expense, restructuring charges (recoveries), impairments of assets held-for-sale, gains on sale of business, integration and site consolidation expenses, integration transaction expenses, and various one-time adjustments. See Table 6 for the Reconciliation of GAAP measures to non-GAAP measures.
Revenue for the second quarter of fiscal 2027 is expected to be between • $2.55 billion and $2.75 billion.
• Gross margin percentage for the second quarter of fiscal 2027 is expected to be between 40% and 42% on a non-GAAP basis.
Total operating expenses for the second quarter of fiscal 2027 are • expected to be between $430 million and $450 million on a non-GAAP basis.
• Tax rate for the second quarter of fiscal 2027 is expected to be between 18% and 20% on a non-GAAP basis.
• EPS for the second quarter of fiscal 2027 is expected to be between $2.28 and $2.48 on a non-GAAP basis.
• Expect to achieve our first $3 billion revenue quarter by the end of fiscal 2027.
Expect fiscal 2027 pro forma revenue growth to exceed 60%, more than • double our fiscal 2026 pro forma growth rate.
• New Gross Margin Target; Expect to achieve our first quarter with non-GAAP gross margin above 45% before the end of calendar 2028.
The Company has not provided a quantitative reconciliation of forward-looking non-GAAP gross margin percentage, non-GAAP operating expenses, non-GAAP tax rate and non-GAAP earnings per share, because we cannot, without unreasonable efforts, forecast certain items required to develop comparable GAAP (1) measures. These items include, without limitation, restructuring charges, integration, site consolidation and other expenses, foreign exchange gains (losses), and share based compensation expense. The variability of these items could significantly impact our future GAAP financial results and we believe that the inclusion of any such reconciliations would imply a degree or precision that could be confusing or misleading to investors.
Investor Conference Call / Webcast Details Coherent will review the Company’s financial results for its first quarter of fiscal 2027 and business outlook on Wednesday, November 4, at 4:30 p.m. ET. A live webcast and replay of the conference call will be available on the Investor Relations section of the Company’s website at coherent.com/company/investor-relations. The Company’s financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release. Additional Information and Where to Find It In connection with the conference call described above, the Company intends to file an investor presentation as an exhibit to a Current Report on Form 8-Kfiled with the Securities and Exchange Commission (“SEC”) and to post the investor presentation on the Company’s website at coherent.com/company/investor-relations/investor- presentations after market close on November 4, 2026. We also may, from time to time, post other important information for 3
investors on our website at coherent.com/company/investor-relations. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should review the Investor Relations page of our website referenced above, in addition to following the Company’s press releases, SEC filings, and public conference calls, presentations, and webcasts. Investors and security holders are able to obtain free copies of these documents through the Company’s website referenced above. Copies of the documents filed by the Company with the SEC may be obtained free of charge on the Company’s website at coherent.com/company/investor-relations/sec-filings. The information contained on, or that may be accessed through, the Company’s website is not incorporated by reference into, and is not part of, this release.
This press release contains statements, estimates, and projections that constitute “forward-looking statements” as defined under U.S. federal securities laws – including our business and financial outlook for the second quarter of fiscal 2027 and beyond, each of which is made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The forward- looking statements are subject to certain risks and uncertainties that could cause the Company’s actual results to differ materially from its historical experience and our present expectations or projections.
The Company believes that all forward-looking statements made by it herein have a reasonable basis, but there can be no assurance that management’s expectations, beliefs, or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and global economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements herein include but are not limited to: (i) the failure of any one or more of the assumptions stated herein to prove to be correct; (ii) changes in demand in the Company’s end markets along with the Company’s ability to respond to such market changes; (iii) our failure to accurately estimate customer demand and future sales and/or fluctuations in purchasing patterns of customers and end users; (iv) the ability of the Company to retain and hire key employees; (v) the terms of the Company’s indebtedness and ability to service such debt (vi) the timely release of new products and acceptance of such new products by the market; (vii) the introduction of new products by competitors and other competitive responses; (viii) the risks to realizing the benefits of investments in R&D and commercialization of innovations; (ix) the risks that the Company’s stock price will not trade in line with industrial technology leaders; (x) the impact of international conflict and economic volatility in either domestic or foreign markets, including risks related to the impact of trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries; and/or (xi) the risks relating to forward-looking statements and other “Risk Factors” identified from time to time in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2026, and our subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise.
Coherent is the global photonics leader. We harness photons to drive innovation. Industry leaders in the datacenter, communications, and industrial markets rely on Coherent’s world-leading technology to fuel their own innovation and growth.
Founded in 1971 and operating in more than 20 countries, Coherent brings the industry’s broadest, deepest technology stack; unmatched supply chain resilience; and global scale to help its customers solve their toughest technology challenges. For more information, please visit us at coherent.com.
Table 2 Coherent Corp. and Subsidiaries Condensed Consolidated Statements of Earnings*
$ Millions (unaudited) Sep 30, 2026 Jun 30, 2026 ────────────────────────────────────────────────────────────────────────────── Assets Current Assets Cash and cash equivalents $ 1,552.9 $ 1,162.0 Restricted cash, current 44.6 35.2 Short-term investments 200.0 825.0 Accounts receivable 1,604.2 1,343.3 Inventories 3,341.4 2,581.0 Prepaid and refundable 52.5 78.9 income taxes Prepaid and other current 1,128.7 900.1 assets Total Current Assets 7,924.3 6,925.5 Property, plant & 3,869.8 2,999.3 equipment, net Goodwill 4,448.3 4,375.6 Other intangible assets, 2,815.9 2,884.5 net Deferred income taxes 90.4 69.4 Restricted cash, 538.8 571.2 non-current Other assets 560.1 474.3 Total Assets $ 20,247.6 $ 18,299.9 Liabilities and Equity Current Liabilities Current portion of $ 19.9 $ 7.9 long-term debt Accounts payable 2,506.4 1,905.4 Operating lease current 68.3 61.4 liabilities Accruals and other current 862.0 879.3 liabilities Total Current Liabilities 3,456.6 2,853.9 Long-term debt 3,980.7 3,214.3 Deferred income taxes 503.7 540.6 Operating lease liabilities 278.1 254.8 Other liabilities 366.8 198.0 Total Liabilities 8,585.9 7,061.7 Total Coherent Corp. Shareholders’ 11,330.0 10,903.5 Equity Noncontrolling interests 331.7 334.7 Total Equity 11,661.7 11,238.2 Total Liabilities and $ 20,247.6 $ 18,299.9 Equity
Table 4 Coherent Corp. and Subsidiaries Condensed Consolidated Statements of Cash Flows*
THREE MONTHS $ Millions ENDED (unaudited) Sep 30, 2026 Sep 30, 2025 ────────────────────────────────────────────────────────────────────────────── Cash Flows from Operating Activities Net cash provided by (used in) $ (92.7 ) $ 46.0 operating activities Cash Flows from Investing Activities Additions to property, plant (775.5 ) (103.9 ) & equipment Proceeds from the sale of — 391.1 business Proceeds from sale of equity — 9.6 investment Proceeds from sales/maturiti… of 625.0 — short-term investments Other investing (50.4 ) — activities Net cash provided by (used in) (200.9 ) 296.8 investing activities Cash Flows from Financing Activities Proceeds from borrowings of — 1,250.0 Term A Facility Proceeds from borrowings of — 3.3 Term B Facility Proceeds from borrowings of revolving 11.7 88.9 credit facilities Proceeds from borrowings of 773.4 — other credit facilities Payments on (0.8 ) (1,650.8 ) existing debt Payments on borrowings under revolving (9.8 ) (77.0 ) credit facilities Debt issuance — (8.5 ) costs Proceeds from exercises of stock options and purchases 19.4 21.3 under employee stock purchase plan Payments in satisfaction of employees’ (128.6 ) (37.4 ) minimum tax obligations Payment of — (11.4 ) dividends Other financing (0.6 ) 0.3 activities Net cash provided by (used in) 664.6 (421.5 ) financing activities Effect of exchange rate changes on cash (3.1 ) (1.3 ) and cash equivalents Net increase (decrease) in 367.9 (80.0 ) cash and cash equivalents Cash, Cash Equivalents, and Restricted 1,768.4 1,632.9 Cash at Beginning of Period Cash, Cash Equivalents, and Restricted $ 2,136.3 $ 1,552.9 Cash at End of Period
Integration, site consolidation and other costs include retention and (1) severance payments and other integration costs related to the acquisition of Coherent, Inc., implementation of common technology systems and costs related to business divestitures.
Financing fees include debt extinguishment costs and various fees (2) related to closing the new Credit Agreement and repricing our Term Loan B.
Restructuring charges include non-cash impairment charges for (3) production assets and improvements on leased facilities, severance, contract termination costs and other costs related to the restructuring plans.
(4) Impairment of assets held-for-sale relate to several entities classified as held-for-sale.
(5) Gain on sale of business is due to the sale of our aerospace and defense business.
(6) Gain on sale of investment is due to the sale of shares in an equity method investment.
The Company adopted a full-year, normalized tax rate for the computation of the non-GAAP income tax provision beginning in fiscal year 2026. We believe this approach provides investors with a more consistent view of our underlying operating performance. In estimating the full-year non-GAAP normalized tax rate, the Company utilized a full-year financial projection that considers multiple factors such as changes to the (7) Company’s current operating structure, expected reserve changes for the year, and other significant tax matters to the extent they are applicable to the full fiscal year financial projection. In addition to the adjustments described above, this normalized tax rate excludes the impact of share-based awards, amortization of acquisition-related intangible assets, integration and restructuring charges, foreign exchange gain/(loss), and certain tax valuation allowances.
For fiscal years 2026 and 2027, the Company’s non-GAAPnormalized tax rate is 19%. This projected normalized tax rate was applied to each quarter of fiscal year 2026 and 2027. The Company’s non-GAAPnormalized tax rate on non-GAAPnet income may be adjusted during the year to account for events or trends that the Company believes materially impact the original annual non-GAAPnormalized tax rate including, but not limited to, significant changes resulting from tax legislation, acquisitions or dispositions, entity structures or operational changes and other significant events. These additional non-GAAPfinancial measures should not be considered substitutes for any measures derived in accordance with GAAP and may be inconsistent with similar measures presented by other companies. 12
$ Millions, except per share THREE amounts MONTHS Sep 30, Jun 30, Sep 30, (unaudit… ENDED 2026 2026 2025 ────────────────────────────────────────────────────────────────────────────── Numerat… Net earnings attribu… $ 384.7 $ 240.5 $ 226.3 to Coherent Corp. Deduct Series B redeema… — — (33.5 ) preferr… dividen… Basic earnings availab… $ 384.7 $ 240.5 $ 192.9 to common shareho… Effect of dilutive securit… Add back Series B $ — $ — $ 33.5 preferr… dividen… Diluted earnings availab… $ 384.7 $ 240.5 $ 226.3 to common shareho… Denomin… Weighted average 196.2 195.7 156.2 shares Effect of dilutive securit… Common stock 5.8 6.6 4.6 equival… Series B Redeema… — — 29.9 Preferr… Stock Diluted weighted average 202.0 202.2 190.7 common shares Basic earnings per $ 1.96 $ 1.23 $ 1.24 common share Diluted earnings per $ 1.90 $ 1.19 $ 1.19 common share
$ Millions, except per share THREE amounts MONTHS Sep 30, Jun 30, Sep 30, (unaudit… ENDED 2026 2026 2025 ────────────────────────────────────────────────────────────────────────────── Numerat… Net earnings attribu… to $ 422.0 $ 351.2 $ 220.9 Coherent Corp. on non-GAAP basis Deduct Series B redeema… — — (33.5 ) preferr… dividen… Basic earnings availab… $ 422.0 $ 351.2 $ 187.5 to common shareho… Effect of dilutive securit… Add back Series B $ — $ — $ 33.5 preferr… dividen… Diluted earnings availab… $ 422.0 $ 351.2 $ 220.9 to common shareho… Denomin… Weighted average 196.2 195.7 156.2 shares Effect of dilutive securit… Common stock 5.8 6.6 4.6 equival… Series B Redeema… — — 29.9 Preferr… Stock Diluted weighted average 202.0 202.2 190.7 common shares Basic earnings per common $ 2.15 $ 1.79 $ 1.20 share on non-GAAP basis Diluted earnings per common $ 2.09 $ 1.74 $ 1.16 share on non-GAAP basis
Full text with the tables
Exhibit 99.1
Coherent Corp.
375 Saxonburg Blvd.
Saxonburg, PA 16056-9499
PRESS RELEASE COHERENT CORP. REPORTS FIRST QUARTER FISCAL 2027 RESULTS
• Q1 REVENUE OF $2.37B, INCREASED 50% Y/Y AND 56% Y/Y ON A PRO FORMA
BASIS
• Q1 GAAP GROSS MARGIN OF 39.1%, INCREASED 254 bps Y/Y; Q1 NON-GAAP
GROSS MARGIN OF 40.6%, INCREASED 184 bps Y/Y
• Q1 GAAP EPS OF $1.90, INCREASED $0.71 Y/Y; Q1 NON-GAAP EPS OF $2.09,
INCREASED $0.93 Y/Y
SAXONBURG, Pa., November 4, 2026 (GLOBE NEWSWIRE) – Coherent Corp. (NYSE: COHR)
(“Coherent,” “We,” or the “Company”), a global leader in photonics, announced
financial results today for its first quarter of fiscal year 2027 ended
September 30, 2026. Revenue for the first quarter of fiscal 2027 was $2.37
billion, with GAAP gross margin of 39.1% and GAAP net income of $1.90 per
diluted share. On a non-GAAPbasis, gross margin was 40.6% with net income per
diluted share of $2.09. “Q1 marked a strong start to fiscal 2027, with pro forma
revenue up 56% year over year and non-GAAPEPS up 80%,” said Jim Anderson, CEO.
“Our established businesses delivered strong growth, while new growth areas are
beginning to ramp. 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. We expect fiscal 2027 pro forma revenue growth to exceed 60%.”
Sherri Luther, CFO, said, “Our Q1 results delivered substantial operating
leverage and durable gross margin expansion, driven by pricing optimization and
cost improvements. This margin strength gives us the confidence to raise our
longer-term target. We expect to achieve our first quarter with non-GAAPgross
margin above 45% before the end of calendar 2028.” 1
S…
F…
Q…
F…
R…
a…
C…
(…
m…
e…
p…
a…
p…
s… GA…
d… Fi…
T… Re… Q1 Q4 Q1
1 (u… FY… FY26 FY… Q/Q Y/Y
──────────────────────────────────────────────────────────────────────────────
R… $ 2,… $ 2,0… $ 1,… 15.9 % 49.9 %
G…
M… 39… % 38.5 % 36… % 66 bps 254 bps
%
R… )
E… 10… % 10.6 % 9.8 % (60 bps 18 bps
%
S… ) )
E… 12… % 13.0 % 15… % (17 bps (304 bps
%
O… $ 550 $ 533 $ 320 3.2 % 71.8 %
E…
O… $ 378 $ 254 $ 259 48.8 % 45.9 %
I…
O… 15… % 12.4 % 16… % 353 bps -46 bps
M…
N…
E…
A… $ 385 $ 241 $ 226 59.9 % 70.2 %
to
C…
C…
D…
E… $ 1.… $ 1.19 $ 1.… $ 0.71 $ 0.71
P…
S…
Operating Income is defined as earnings before income taxes, interest
(1) expense, and other expense or income,
net.
S…
F…
Q…
F…
R…
a…
C…
(…
m…
e…
p…
a…
p…
s…
d… No…
T… Fi…
1, Re… Q1 Q4 Q1
c… (u… FY… FY26 FY… Q/Q Y/Y
──────────────────────────────────────────────────────────────────────────────
R… $ 2,… $ 2,0… $ 1,… 15.9 % 49.9 %
G…
M… 40… % 40.2 % 38… % 37 bps 184 bps
%
R… )
E… 9.6 % 10.2 % 9.4 % (62 bps 21 bps
%
S… ) )
E… 7.8 % 8.2 % 9.8 % (44 bps (205 bps
%
O… $ 412 $ 377 $ 304 9.2 % 35.5 %
E…
O… $ 550 $ 446 $ 309 23.4 % 78.1 %
I…
O… 23… % 21.8 % 19… % 142 bps 368 bps
M…
N…
E…
A… $ 422 $ 351 $ 221 20.1 % 91.0 %
to
C…
C…
D…
E… $ 2.… $ 1.74 $ 1.… $ 0.35 $ 0.93
P…
S…
The Company has disclosed financial measurements in this earnings
release that present financial information
that are considered to be non-GAAP financial measures. These
measurements are not a substitute for GAAP measurements, although the
Company’s management uses these measurements as an aid in monitoring
the
Company’s on-going financial performance. The non-GAAP net earnings
attributable to Coherent Corp., the non-GAAP diluted
earnings per share, the non-GAAP operating income, the non-GAAP gross
margin, the non-GAAP research and development, the non-GAAP selling,
general and administration, the non-GAAP operating expenses, the
non-GAAP interest and other (income) expense, and
the non-GAAP income taxes, measure earnings and operating income
(loss), respectively, excluding non-recurring or unusual items that are
considered by management to be
outside the Company’s standard operation and excluding certain non-cash
items. There are limitations associated with the use of non-GAAP
financial measures,
(1) including that such measures may not be entirely comparable to
similarly titled measures used by other companies, due to potential
differences among calculation methodologies. Thus, there can be no
assurance whether (i) items excluded from the non-GAAP financial
measures will occur in the future or (ii) there will be cash costs
associated with items excluded from the non-GAAP financial measures.
The Company
compensates for these limitations by using these non-GAAP financial
measures as supplements to GAAP financial measures and by providing the
reconciliations of the
non-GAAP financial measures to their most comparable GAAP financial
measures. Investors should consider adjusted measures in addition to,
and not as a substitute for, or superior to, financial performance
measures prepared in accordance with GAAP. All non-GAAP amounts exclude
certain adjustments for share-based compensation, acquired intangible
amortization expense, restructuring charges (recoveries),
impairments of assets held-for-sale, gains on sale of business,
integration and site consolidation expenses, integration transaction
expenses, and various one-time adjustments. See Table 6 for the
Reconciliation of GAAP measures to non-GAAP measures.
2
Business Outlook – Second Quarter Fiscal 2027 (1)
Revenue for the second quarter of fiscal 2027 is expected to be between
• $2.55 billion and
$2.75 billion.
• Gross margin percentage for the second quarter of fiscal 2027 is
expected to be between 40% and 42% on a non-GAAP basis.
Total operating expenses for the second quarter of fiscal 2027 are
• expected to be between $430 million and
$450 million on a non-GAAP basis.
• Tax rate for the second quarter of fiscal 2027 is expected to be
between 18% and 20% on a non-GAAP basis.
• EPS for the second quarter of fiscal 2027 is expected to be between
$2.28 and $2.48 on a non-GAAP basis.
Additional Revenue and Gross Margin Guidance
• Expect to achieve our first $3 billion revenue quarter by the end of
fiscal 2027.
Expect fiscal 2027 pro forma revenue growth to exceed 60%, more than
• double our fiscal 2026 pro forma growth
rate.
• Expect first $4 billion revenue quarter in fiscal 2028.
• New Gross Margin Target; Expect to achieve our first quarter with
non-GAAP gross margin above 45% before the end of calendar 2028.
The Company has not provided a quantitative reconciliation of
forward-looking
non-GAAP gross margin percentage, non-GAAP operating expenses, non-GAAP
tax rate and
non-GAAP earnings per share, because we cannot, without unreasonable
efforts, forecast certain items required to develop comparable GAAP
(1) measures. These items include, without limitation, restructuring
charges, integration, site consolidation and other expenses, foreign
exchange gains (losses), and share based compensation expense. The
variability of these items could significantly impact our future GAAP
financial results and we believe that the
inclusion of any such reconciliations would imply a degree or precision
that could be confusing or misleading to investors.
Investor Conference Call / Webcast Details Coherent will review the Company’s
financial results for its first quarter of fiscal 2027 and business outlook on
Wednesday, November 4, at 4:30 p.m. ET. A live webcast and replay of the
conference call will be available on the Investor Relations section of the
Company’s website at coherent.com/company/investor-relations. The Company’s
financial guidance will be limited to the comments on its public quarterly
earnings call and the public business outlook statements contained in this press
release. Additional Information and Where to Find It In connection with the
conference call described above, the Company intends to file an investor
presentation as an exhibit to a Current Report on Form 8-Kfiled with the
Securities and Exchange Commission (“SEC”) and to post the investor presentation
on the Company’s website at coherent.com/company/investor-relations/investor-
presentations after market close on November 4, 2026. We also may, from time to
time, post other important information for 3
investors on our website at coherent.com/company/investor-relations. We intend
to use our website as a means of disclosing material, non-public information
and for complying with our disclosure obligations under Regulation FD.
Accordingly, investors should review the Investor Relations page of our website
referenced above, in addition to following the Company’s press releases, SEC
filings, and
public conference calls, presentations, and webcasts. Investors and security
holders are able to obtain free copies of these documents through the Company’s
website referenced above. Copies of the documents filed by the Company with the
SEC
may be obtained free of charge on the Company’s website at
coherent.com/company/investor-relations/sec-filings. The information contained
on, or that may be accessed through, the Company’s website
is not incorporated by reference into, and is not part of, this release.
Forward-Looking Statements
This press release contains statements, estimates, and projections that
constitute “forward-looking statements” as defined under U.S. federal
securities laws – including our business and financial outlook for the second
quarter of fiscal 2027 and beyond, each of which is made pursuant to the safe
harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995
and
relate to the Company’s performance on a going-forward basis. The forward-
looking statements are subject to certain risks and uncertainties that could
cause the Company’s actual results to differ materially from its historical
experience
and our present expectations or projections.
The Company believes that all forward-looking statements made by it herein have
a reasonable basis, but
there can be no assurance that management’s expectations, beliefs, or
projections as expressed in the forward-looking statements will actually occur
or prove to be correct. In addition to general industry and global economic
conditions,
factors that could cause actual results to differ materially from those
discussed in the forward-looking statements herein include but are not limited
to: (i) the failure of any one or more of the assumptions stated herein to prove
to be
correct; (ii) changes in demand in the Company’s end markets along with the
Company’s ability to respond to such market changes; (iii) our failure to
accurately estimate customer demand and future sales and/or fluctuations in
purchasing patterns of customers and end users; (iv) the ability of the Company
to retain and hire key employees; (v) the terms of the Company’s indebtedness
and ability to service such debt (vi) the timely release of new
products and acceptance of such new products by the market; (vii) the
introduction of new products by competitors and other competitive responses;
(viii) the risks to realizing the benefits of investments in R&D and
commercialization
of innovations; (ix) the risks that the Company’s stock price will not trade in
line with industrial technology leaders; (x) the impact of international
conflict and economic volatility in either domestic or foreign markets,
including risks related to the impact of trade protection measures, such as
import tariffs by the United States or retaliatory actions taken by other
countries; and/or (xi) the risks relating to forward-looking statements and
other “Risk
Factors” identified from time to time in our filings with the SEC, including our
Annual Report on Form 10-K for the fiscal year ended June 30, 2026, and our
subsequently filed Quarterly Reports on
Form 10-Q, which filings are available from the SEC. You should not place undue
reliance on forward-looking statements, which speak only as of the date they are
made. The Company disclaims any obligation to
update information contained in these forward-looking statements, whether as a
result of new information, future events or developments, or otherwise.
4
About Coherent
Coherent is the global photonics leader. We harness photons to drive innovation.
Industry leaders in the datacenter, communications, and industrial markets
rely on Coherent’s world-leading technology to fuel their own innovation and
growth.
Founded in 1971 and operating in more than 20 countries,
Coherent brings the industry’s broadest, deepest technology stack; unmatched
supply chain resilience; and global scale to help its customers solve their
toughest technology challenges. For more information, please visit us at
coherent.com.
Contact:
Paul Silverstein
Senior VP, Investor Relations
investor.relations@coherent.com
# # #
5
Table 2 Coherent Corp. and Subsidiaries Condensed Consolidated Statements of
Earnings*
$
Million…
except
per
share THREE
amounts MONTHS Sep 30, Jun 30, Sep 30,
(unaudi… ENDED 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Revenu… $ 2,370.3 $ 2,045.5 $ 1,581.4
Costs,
Expens…
& Other
Expense
(Incom…
Cost of
goods 1,442.6 1,258.5 1,002.2
sold
Resear…
and 236.6 216.4 154.9
develo…
Sellin…
general 304.7 266.4 252.1
and
admini…
Restru… 8.6 6.1 19.3
charges
Impair…
of — 44.3 9.1
assets
held-f…
Gain on
sale of — — (115.2 )
busine…
Intere… 46.3 41.1 58.7
expense
Other
expense (27.2 ) (65.6 ) (16.5 )
(incom…
net
Total
Costs,
Expens… 2,011.6 1,767.0 1,364.5
& Other
Expense
Earnin…
Before 358.8 278.5 216.9
Income
Taxes
Income (22.8 ) 42.3 (8.3 )
Taxes
Net 381.6 236.2 225.2
Earnin…
Net
Loss
Attrib… (3.1 ) (4.3 ) (1.2 )
to
Noncon…
Intere…
Net
Earnin…
Attrib… 384.7 240.5 226.3
to
Cohere…
Corp.
Less:
Divide…
on — — 33.5
Prefer…
Stock
Net
Earnin…
Availa… $ 384.7 $ 240.5 $ 192.9
to the
Common
Shareh…
Basic
Earnin… $ 1.96 $ 1.23 $ 1.24
Per
Share
Diluted
Earnin… $ 1.90 $ 1.19 $ 1.19
Per
Share
Average
Shares 196.2 195.7 156.2
Outsta…
- Basic
Average
Shares
Outsta… 202.0 202.2 190.7
-
Diluted
* Amounts may not recalculate due to rounding.
6
Table 3 Coherent Corp. and Subsidiaries Condensed Consolidated Balance Sheets*
$ Millions
(unaudited) Sep 30, 2026 Jun 30, 2026
──────────────────────────────────────────────────────────────────────────────
Assets
Current Assets
Cash and cash equivalents $ 1,552.9 $ 1,162.0
Restricted cash, current 44.6 35.2
Short-term investments 200.0 825.0
Accounts receivable 1,604.2 1,343.3
Inventories 3,341.4 2,581.0
Prepaid and refundable 52.5 78.9
income taxes
Prepaid and other current 1,128.7 900.1
assets
Total Current Assets 7,924.3 6,925.5
Property, plant & 3,869.8 2,999.3
equipment, net
Goodwill 4,448.3 4,375.6
Other intangible assets, 2,815.9 2,884.5
net
Deferred income taxes 90.4 69.4
Restricted cash, 538.8 571.2
non-current
Other assets 560.1 474.3
Total Assets $ 20,247.6 $ 18,299.9
Liabilities and Equity
Current Liabilities
Current portion of $ 19.9 $ 7.9
long-term debt
Accounts payable 2,506.4 1,905.4
Operating lease current 68.3 61.4
liabilities
Accruals and other current 862.0 879.3
liabilities
Total Current Liabilities 3,456.6 2,853.9
Long-term debt 3,980.7 3,214.3
Deferred income taxes 503.7 540.6
Operating lease liabilities 278.1 254.8
Other liabilities 366.8 198.0
Total Liabilities 8,585.9 7,061.7
Total Coherent Corp.
Shareholders’ 11,330.0 10,903.5
Equity
Noncontrolling interests 331.7 334.7
Total Equity 11,661.7 11,238.2
Total Liabilities and $ 20,247.6 $ 18,299.9
Equity
* Amounts may not recalculate due to rounding.
7
Table 4 Coherent Corp. and Subsidiaries Condensed Consolidated Statements of
Cash Flows*
THREE MONTHS
$ Millions ENDED
(unaudited) Sep 30, 2026 Sep 30, 2025
──────────────────────────────────────────────────────────────────────────────
Cash Flows from
Operating
Activities
Net cash
provided by
(used in) $ (92.7 ) $ 46.0
operating
activities
Cash Flows from
Investing
Activities
Additions to
property, plant (775.5 ) (103.9 )
& equipment
Proceeds from
the sale of — 391.1
business
Proceeds from
sale of equity — 9.6
investment
Proceeds from
sales/maturiti…
of 625.0 —
short-term
investments
Other investing (50.4 ) —
activities
Net cash
provided by
(used in) (200.9 ) 296.8
investing
activities
Cash Flows from
Financing
Activities
Proceeds from
borrowings of — 1,250.0
Term A
Facility
Proceeds from
borrowings of — 3.3
Term B
Facility
Proceeds from
borrowings of
revolving 11.7 88.9
credit
facilities
Proceeds from
borrowings of 773.4 —
other credit
facilities
Payments on (0.8 ) (1,650.8 )
existing debt
Payments on
borrowings
under revolving (9.8 ) (77.0 )
credit
facilities
Debt issuance — (8.5 )
costs
Proceeds from
exercises of
stock options
and purchases 19.4 21.3
under employee
stock
purchase plan
Payments in
satisfaction of
employees’ (128.6 ) (37.4 )
minimum tax
obligations
Payment of — (11.4 )
dividends
Other financing (0.6 ) 0.3
activities
Net cash
provided by
(used in) 664.6 (421.5 )
financing
activities
Effect of
exchange rate
changes on cash (3.1 ) (1.3 )
and cash
equivalents
Net increase
(decrease) in 367.9 (80.0 )
cash and cash
equivalents
Cash, Cash
Equivalents,
and Restricted 1,768.4 1,632.9
Cash at
Beginning of
Period
Cash, Cash
Equivalents,
and Restricted $ 2,136.3 $ 1,552.9
Cash at End of
Period
* Amounts may not recalculate due to rounding.
8
Table 5 Segment Revenues*
$ THREE
Millions MONTHS Sep 30, Jun 30, Sep 30,
(unaudit… ENDED 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Revenues:
Datacent…
& $ 1,951.7 $ 1,615.0 $ 1,090.0
Communic…
Industri… 418.6 430.5 491.4
Consolid… $ 2,370.3 $ 2,045.5 $ 1,581.4
* Amounts may not recalculate due to rounding.
9
Table 6 Reconciliation of GAAP Measures to Non-GAAP Measures*
$
Million…
except
per
share THREE
amounts MONTHS Sep 30, Jun 30, Sep 30,
(unaudi… ENDED 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Gross
margin $ 927.8 $ 787.1 $ 579.2
on GAAP
basis
Share-… 6.1 7.4 5.9
compen…
Amorti…
of 27.7 27.8 27.8
acquir…
intang…
Integr…
site
consol… 0.4 0.3 (0.3 )
and
other(…
Gross
margin
on $ 961.9 $ 822.6 $ 612.6
non-GA…
basis
Resear…
&
develo… $ 236.6 $ 216.4 $ 154.9
on GAAP
basis
Share-… (9.7 ) (8.0 ) (6.8 )
compen…
Amorti…
of (0.2 ) (0.2 ) (0.2 )
acquir…
intang…
Resear…
&
develo… $ 226.7 $ 208.3 $ 147.9
on
non-GA…
basis
Sellin…
general
and
admini… $ 304.7 $ 266.4 $ 252.1
on
GAAP
basis
Share-… (57.4 ) (38.5 ) (32.0 )
compen…
Amorti…
of (41.6 ) (41.8 ) (41.5 )
acquir…
intang…
Financ… — — (0.3 )
fees(2)
Integr…
site
consol… (20.8 ) (17.4 ) (22.5 )
and
other(…
Sellin…
general
and
admini… $ 184.9 $ 168.5 $ 155.8
on
non-GA…
basis
Restru…
charges $ 8.6 $ 6.1 $ 19.3
on GAAP
basis
Restru… (8.6 ) (6.1 ) (19.3 )
charge…
Restru…
charges
on $ — $ — $ —
non-GA…
basis
Impair…
of
assets $ — $ 44.3 $ 9.1
held-f…
on GAAP
basis
Impair…
of — (44.3 ) (9.1 )
assets
held-f…
Impair…
of
assets
held-f… $ — $ — $ —
on
non-GA…
basis
Gain on
sale of
busine… $ — $ — $ (115.2 )
on GAAP
basis
Gain on
sale of — — 115.2
busine…
Gain on
sale of
busine… $ — $ — $ —
on
non-GA…
basis
Operat…
income $ 377.9 $ 253.9 $ 259.1
on GAAP
basis
Share-… 73.2 53.9 44.7
compen…
Amorti…
of 69.5 69.8 69.5
acquir…
intang…
Restru… 8.6 6.1 19.3
charge…
Impair…
of — 44.3 9.1
assets
held-f…
Gain on
sale of — — (115.2 )
busine…
Financ… — — 0.3
fees(2)
Integr…
site
consol… 21.2 17.7 22.2
and
other(…
Operat…
income
on $ 550.3 $ 445.8 $ 308.9
non-GA…
basis
10
Table 6 Reconciliation of GAAP Measures to Non-GAAPMeasures* (Continued)
$
Million…
except
per
share THREE
amounts MONTHS Sep 30, Jun 30, Sep 30,
(unaudi… ENDED 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Intere…
and
other
(incom… $ 19.1 $ (24.6 ) $ 42.2
expens…
net
on GAAP
basis
Foreign
curren…
exchan… 13.9 3.8 0.8
gains,
net
Gain on
sale of — 38.4 6.7
invest…
Financ… — — (12.1 )
fees(2)
Intere…
and
other
expens… $ 33.0 $ 17.6 $ 37.6
net on
non-GA…
basis
Income
taxes $ (22.8 ) $ 42.3 $ (8.3 )
on GAAP
basis
Tax
impact
of 121.1 39.1 59.9
non-GA…
measur…
Income
taxes
on $ 98.3 $ 81.4 $ 51.5
non-GA…
basis
Net
earnin…
attrib…
to $ 384.7 $ 240.5 $ 226.3
Cohere…
Corp.
on GAAP
basis
Share-… 73.2 53.9 44.7
compen…
Amorti…
of 69.5 69.8 69.5
acquir…
intang…
Foreign
curren… (13.9 ) (3.8 ) (0.8 )
exchan…
gains
Restru… 8.6 6.1 19.3
charge…
Impair…
of — 44.3 9.1
assets
held-f…
Gain on
sale of — — (115.2 )
busine…
Integr…
site
consol… 21.2 17.7 22.2
and
other(…
Gain on
sale of — (38.4 ) (6.7 )
invest…
Financ… — — 12.4
fees(2)
Tax
impact
of (121.1 ) (38.9 ) (59.9 )
non-GA…
measur…
Net
earnin…
attrib…
to
Cohere… $ 422.0 $ 351.2 $ 220.9
Corp.
on
non-GA…
basis
Per
share
data:
Net
earnin…
on GAAP
basis
Basic
Earnin… $ 1.96 $ 1.23 $ 1.24
Per
Share
Diluted
Earnin… $ 1.90 $ 1.19 $ 1.19
Per
Share
Net
earnin…
on
non-GA…
basis
Basic
Earnin… $ 2.15 $ 1.79 $ 1.20
Per
Share
Diluted
Earnin… $ 2.09 $ 1.74 $ 1.16
Per
Share
* Amounts may not recalculate due to rounding.
11
Integration, site consolidation and other costs include retention and
(1) severance payments and other integration
costs related to the acquisition of Coherent, Inc., implementation of
common technology systems and costs related to business divestitures.
Financing fees include debt extinguishment costs and various fees
(2) related to closing the new Credit Agreement
and repricing our Term Loan B.
Restructuring charges include non-cash impairment charges for
(3) production assets and improvements on leased facilities, severance,
contract termination costs and other costs related to the restructuring
plans.
(4) Impairment of assets
held-for-sale relate to several entities classified as held-for-sale.
(5) Gain on sale of business is due to the sale of our aerospace and
defense business.
(6) Gain on sale of investment is due to the sale of shares in an equity
method investment.
The Company adopted a full-year, normalized tax rate for the
computation of the
non-GAAP income tax provision beginning in fiscal year 2026. We believe
this approach provides investors with a more consistent view of our
underlying operating performance. In estimating the full-year non-GAAP
normalized tax rate, the Company utilized a full-year financial
projection that considers multiple factors such as changes to the
(7) Company’s current operating structure, expected reserve changes for
the year, and other significant tax matters to the extent they are
applicable to the full fiscal year financial projection. In addition to
the adjustments described above, this normalized tax rate excludes the
impact of share-based awards,
amortization of acquisition-related intangible assets, integration and
restructuring charges, foreign exchange gain/(loss), and certain tax
valuation allowances.
For fiscal years 2026 and 2027, the Company’s non-GAAPnormalized tax rate is
19%. This projected normalized tax rate was applied to each quarter of fiscal
year 2026 and 2027. The Company’s non-GAAPnormalized tax rate on non-GAAPnet
income may be adjusted during the year to account for events or trends that the
Company believes materially impact the original annual non-GAAPnormalized tax
rate including, but not limited to, significant changes resulting from tax
legislation, acquisitions or dispositions, entity structures or operational
changes and other significant events. These additional non-GAAPfinancial
measures should not be considered substitutes for any measures derived in
accordance with GAAP and may be inconsistent with similar measures presented by
other companies. 12
Table 7 GAAP Earnings Per Share Calculation*
$
Millions,
except
per share THREE
amounts MONTHS Sep 30, Jun 30, Sep 30,
(unaudit… ENDED 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Numerat…
Net
earnings
attribu… $ 384.7 $ 240.5 $ 226.3
to
Coherent
Corp.
Deduct
Series B
redeema… — — (33.5 )
preferr…
dividen…
Basic
earnings
availab… $ 384.7 $ 240.5 $ 192.9
to
common
shareho…
Effect
of
dilutive
securit…
Add back
Series B $ — $ — $ 33.5
preferr…
dividen…
Diluted
earnings
availab… $ 384.7 $ 240.5 $ 226.3
to
common
shareho…
Denomin…
Weighted
average 196.2 195.7 156.2
shares
Effect
of
dilutive
securit…
Common
stock 5.8 6.6 4.6
equival…
Series B
Redeema… — — 29.9
Preferr…
Stock
Diluted
weighted
average 202.0 202.2 190.7
common
shares
Basic
earnings
per $ 1.96 $ 1.23 $ 1.24
common
share
Diluted
earnings
per $ 1.90 $ 1.19 $ 1.19
common
share
* Amounts may not recalculate due to rounding.
13
Table 8 Non-GAAPEarnings Per Share Calculation*
$
Millions,
except
per share THREE
amounts MONTHS Sep 30, Jun 30, Sep 30,
(unaudit… ENDED 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Numerat…
Net
earnings
attribu…
to $ 422.0 $ 351.2 $ 220.9
Coherent
Corp. on
non-GAAP
basis
Deduct
Series B
redeema… — — (33.5 )
preferr…
dividen…
Basic
earnings
availab… $ 422.0 $ 351.2 $ 187.5
to
common
shareho…
Effect
of
dilutive
securit…
Add back
Series B $ — $ — $ 33.5
preferr…
dividen…
Diluted
earnings
availab… $ 422.0 $ 351.2 $ 220.9
to
common
shareho…
Denomin…
Weighted
average 196.2 195.7 156.2
shares
Effect
of
dilutive
securit…
Common
stock 5.8 6.6 4.6
equival…
Series B
Redeema… — — 29.9
Preferr…
Stock
Diluted
weighted
average 202.0 202.2 190.7
common
shares
Basic
earnings
per
common $ 2.15 $ 1.79 $ 1.20
share on
non-GAAP
basis
Diluted
earnings
per
common $ 2.09 $ 1.74 $ 1.16
share on
non-GAAP
basis
* Amounts may not recalculate due to rounding.
14