Coherent Corp. (COHR)

Over the past six months, Coherent Corp.'s stock has increased significantly. Strong Q1 Fiscal 2026 earnings, reported in November 2025, exceeded expectations due to demand in AI data centers and communications, leading to analysts raising price targets. Q2 Fiscal 2026 earnings also beat forecasts, driven by demand in AI data center infrastructure and optical components, but the stock experienced volatility due to valuation concerns. Management raised Q3 FY26 guidance, supporting a bullish forward view. Increased demand for AI/Datacenter products has been a primary driver of sales and margin expansion. In October 2025, Coherent announced its intent to sell its materials processing product division to Bystronic to reduce debt. The company faces competitive pressure from other players in the Silicon Carbide (SiC) sector.

Coherent Corp. does not appear to experience significant negative demand seasonality. The company has demonstrated consistent year-over-year revenue growth, particularly in its data center and communications segments. Demand for Coherent's products is described as strong and accelerating, with management expecting continued growth. The company has reported exceptional bookings visibility, with orders extending well into calendar 2026 and even into 2027. Coherent is actively ramping up its 6-inch Indium Phosphide (InP) production to meet the rising demand.

Coherent Corp., formerly II-VI Incorporated, is an American manufacturer of optical materials and semiconductors, operating in the technology sector, specifically in optical devices and semiconductor industries. The company provides technologies for diversified applications across industrial, communications, electronics, and instrumentation markets. Coherent's business is structured into three primary segments: Networking, which develops components and subsystems for data center and communications applications; Materials, which encompasses engineered materials and optoelectronic devices; and Lasers, which provides a wide array of laser types and related equipment.

Coherent Corp. has a global presence with facilities in the Americas, Europe, and Asia, supporting customers across five continents. The company operates in over 20 countries and is headquartered in Saxonburg, Pennsylvania, U.S. Key geographic markets include North America, Europe, China, and Japan.

Coherent Corp. has maintained a positive brand reputation, driven by its strong performance and strategic positioning in high-growth markets. The company is recognized as a global photonics leader, known for innovation in optical technologies. Coherent has benefited from the AI boom, with strong demand for its products in data centers. Several brokerage firms have reiterated "Buy" ratings and raised price targets for COHR. Coherent was named to Forbes 2026 America's Best Companies List. The company has showcased its innovations at industry events and introduced new products. No major negative reputation-impacting events were found.

Coherent Corp. has a significant institutional ownership base, with 1189 institutional owners and shareholders holding a total of 170,477,630 shares. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and Fmr Llc. Institutional ownership accounts for approximately 87.88% of the company, with mutual funds and ETFs holding about 47.52% and other institutional investors holding around 41.44%. Individual investors hold a smaller percentage, around 0.48%.