Coherent Secures Multi-Year Supply Contract with NVIDIA for AI Data Centers
Coherent's revenue increased by 34% to $2.05 billion last quarter, driven by a 59% surge in its Datacenter & Communications segment. The company aims for over $3 billion in quarterly revenue by FY 2027, following significant investments in R&D.
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Coherent reported a revenue increase of 34% to $2.05 billion, with adjusted earnings per share at $1.74. The company announced a multi-year supply contract with NVIDIA to provide optical components for next-gen AI data center architectures.
The Datacenter & Communications segment contributed 79% to the total revenue, rising 59% to $1.62 billion. Coherent plans to ramp up production of Indium Phosphide lasers to meet demand. R&D expenditures reached $723 million in FY 2026, up from $582 million the previous year.
Analysts from JPMorgan and Needham raised price targets to $435 and $420, respectively. Despite a positive outlook, Coherent's stock experienced a 1.3% decline, trading at €280.40, as profit-taking occurred after last year’s rally. The company received a preliminary commitment for up to $50 million in federal funds under the CHIPS and Science Act for manufacturing expansion in Texas.
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