Coherent Corp. COHR

Zacks Investment Research 13 nov

Coherent Corp. (COHR) demonstrated notable profitability improvements in Q1 FY27, with non-GAAP gross margin expanding 184 basis points to 40.6% and operating margin increasing 368 basis points to 23.2%. Non-GAAP EPS surged 80% year-over-year to $2.09, driven by stronger operational execution and improved cost efficiency. The stock has gained 61% over the past year and currently carries a Zacks Rank #2 (Buy) rating.

Zacks Investment Research 13 nov

Coherent (COHR) was named Bull of the Day after delivering strong Q1 results with 50% revenue growth, 80% EPS growth, and raised long-term gross margin targets, driven by AI datacenter demand. Boston Scientific (BSX) was named Bear of the Day as it continues to face weak growth outlook with flat 2027 EPS estimates and declining analyst forecasts. CoreWeave (CRWV) reported record Q3 revenues of $3.66B with a $132.5B backlog but faces concerns over high debt levels and mounting interest expenses.

Zacks Investment Research 13 nov

Coherent (COHR) reported strong September quarter results with 50% revenue growth to $2.37B and beat earnings expectations. The company secured a $20B long-term agreement with a leading AI data center customer (likely NVIDIA) and raised its gross margin target above 45% by 2028. PhotonLink platform revenues are expected to reach $250M by end of 2027. However, the company faces significant capex spending ($776M) to meet booked demand through 2027.

Zacks Investment Research 11 nov

AXT Inc. (AXTI) reported record Q3 2026 revenues of $73.4 million, up 162% year-over-year, driven by strong demand for indium phosphide (InP) substrates used in AI data center optical connectivity. The company's backlog exceeded $500 million with customers on allocation, and it surpassed its 2026 capacity doubling goal. However, the stock's valuation appears stretched at 15.14X P/S ratio compared to industry average of 8.51X.

Zacks Investment Research 11 nov

Coherent Corp. (COHR) shares gained 10% following fiscal Q1 2027 earnings that beat expectations with adjusted EPS of $2.09 and record revenues of $2.37 billion. Datacenter revenues surged 85% year-over-year, driving 82% of total revenues, while gross margins expanded and operating efficiency improved. The company projects fiscal 2027 pro forma revenue growth exceeding 60% and expects quarterly revenues to reach $3 billion by end of fiscal 2027 and $4 billion in fiscal 2028, supported by strong AI infrastructure demand and a $20 billion five-year customer agreement.