Coherent Corp. Reports Second Quarter Fiscal 2026 Results

Q: What were Coherent (COHR) Q2 FY2026 revenue and EPS results?

Coherent reported Q2 FY2026 revenue of $1.69B and GAAP EPS of $0.76 . According to the company, non-GAAP EPS was $1.29 and non-GAAP gross margin was 39.0% , both up year-over-year.

Q: How did Coherent (COHR) gross margins change in Q2 FY2026?

Gross margins expanded year-over-year, with GAAP margin at 36.9% and non-GAAP at 39.0% . According to the company, this reflects stronger product mix and operational improvements in datacenter and communications.

Q: What guidance did Coherent (COHR) give for Q3 FY2026 revenue and margins?

Coherent guided Q3 FY2026 revenue between $1.70B and $1.84B and non-GAAP gross margin of 38.5%–40.5% . According to the company, guidance includes $5M of revenue pre-close from the Munich tools business sale.

Q: Why did Coherent (COHR) operating income fall Q/Q in Q2 FY2026?

GAAP operating income fell to $184M from $259M in Q1 FY26, lowering operating margin Q/Q. According to the company, higher operating expenses and capital ramp contributed to the quarterly decline.

Rhea-AI Impact

(High)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

Coherent (NYSE: COHR) reported Q2 fiscal 2026 revenue of $1.69B, up 17% year-over-year (22% pro forma), GAAP gross margin of 36.9% and GAAP EPS of $0.76. Non-GAAP gross margin was 39.0% with non-GAAP EPS of $1.29. Management reiterated strong datacenter and communications demand and provided Q3 revenue guidance of $1.70B–$1.84B and non-GAAP gross margin guidance of 38.5%–40.5%.

Positive

Revenue +17% Y/Y to $1.69B (22% pro forma when adjusted for divestiture)
GAAP EPS +71% Y/Y to $0.76; Non-GAAP EPS +35% Y/Y to $1.29
Gross margin expansion — GAAP gross margin +145 bps Y/Y to 36.9%; non-GAAP gross margin +77 bps Y/Y to 39.0%
Q3 revenue guidance of $1.70B–$1.84B with non-GAAP gross margin guidance 38.5%–40.5%

Negative

Operating expenses rose 17.8% Y/Y to $439M, pressuring GAAP operating margin
GAAP operating margin down Q/Q to 10.9% (548 bps decline vs Q1 FY26)
Q/Q operating income decreased to $184M from $259M in Q1 FY26
Munich tools business sale reduces future revenue contribution (Q3 outlook excludes most of business; $5M included for pre-close period)

Key Figures

Q2 FY26 Revenue: $1.69B Q2 GAAP Gross Margin: 36.9% Q2 Non-GAAP Gross Margin: 39.0% +5 more

8 metrics

Q2 FY26 Revenue $1.69B Quarter ended Dec 31, 2025; reported as $1,686M

Q2 GAAP Gross Margin 36.9% Up 145 bps year-over-year in Q2 FY26

Q2 Non-GAAP Gross Margin 39.0% Up 77 bps year-over-year in Q2 FY26

Q2 GAAP EPS $0.76 Increased 71% year-over-year in Q2 FY26

Q2 Non-GAAP EPS $1.29 Increased 35% year-over-year in Q2 FY26

Revenue Growth 6.6% Q/Q; 17.5% Y/Y GAAP revenue growth for Q2 FY26 vs Q1 FY26 and Q2 FY25

Q3 FY26 Revenue Outlook $1.70B–$1.84B Non-GAAP business outlook for third quarter fiscal 2026

Q3 FY26 Non-GAAP EPS Guide $1.28–$1.48 Expected non-GAAP EPS for third quarter fiscal 2026

Market Reality Check

Price: $209.60 Vol: Volume 6,110,500 vs 20-da...

normal vol

$209.60 Last Close

Volume Volume 6,110,500 vs 20-day average 4,736,658 (1.29x normal activity) ahead of/around earnings. normal

Technical Trading well above 200-day MA at 120.52 and about 5.1% below 52-week high of 241.50, far above 52-week low 45.58.

Peers on Argus

COHR gained 3.03% while peers were mixed: FTV +0.89%, TDY +3.59%, KEYS +0.96% ve...

COHR gained 3.03% while peers were mixed: FTV +0.89%, TDY +3.59%, KEYS +0.96% versus TRMB -4.8% and GRMN -1.8%, suggesting a company-specific earnings response rather than a broad sector move.

Common Catalyst One peer, FTV, also reported earnings, but broader sector headlines and moves do not clearly cluster around a single shared catalyst.

Historical Context

5 past events · Latest: Jan 21 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 21	Earnings timing update	Positive	+4.1%	Announced date and webcast details for FY26 Q2 earnings release.
Jan 20	Product/tech showcase	Positive	+1.3%	Showcased photonics and advanced materials portfolio at Photonics West 2026.
Jan 20	Quantum encryption demo	Positive	+1.3%	Demonstrated quantum entropy source for quantum-safe encryption with Quside.
Jan 19	Thermal product launch	Positive	+1.3%	Launched Bondable Diamond thermal-management solutions for high-power semiconductors.
Jan 16	New laser modulator	Positive	+1.3%	Introduced germanium-free electro-optic modulator for high-speed CO2 laser drilling.

Pattern Detected

Recent news items (earnings timing, product and technology announcements) were followed by consistently positive next-day reactions between 1.27% and 4.14%, indicating a pattern of constructive responses to Coherent updates.

Recent Company History

Over the past month, Coherent released a series of product and technology updates plus an earnings timing notice. On Jan 16–20, multiple innovation-focused announcements around lasers, thermal management, and quantum-safe encryption coincided with +1.27% reactions. An update on the timing of Q2 FY26 results on Jan 21 saw a larger +4.14% move. Today’s Q2 FY26 results provide the detailed financial picture that follows this buildup of product momentum and investor anticipation.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-12-16

An effective S-3ASR filed on Dec 16, 2025 registers up to 9,775,846 shares for resale by existing holders of stock issued upon conversion of Series B-2 preferred. The company will not receive proceeds from these resales but will cover certain registration expenses. As of Dec 15, 2025, there were 187,419,766 common shares outstanding, and shelf usage count is 0, indicating no takedowns yet under this registration.

Market Pulse Summary

This announcement delivers Q2 FY26 revenue of $1.69B with GAAP gross margin at 36.9% and non-GAAP gr...

Analysis

This announcement delivers Q2 FY26 revenue of $1.69B with GAAP gross margin at 36.9% and non-GAAP gross margin at 39.0%, alongside GAAP EPS of $0.76 and non-GAAP EPS of $1.29, all higher year-over-year. Guidance for Q3 targets $1.70B–$1.84B in revenue and non-GAAP EPS of $1.28–$1.48. Investors may track execution in datacenter, communications, and Industrial segments, monitor operating expenses versus the guided $320M–$340M, and consider potential impacts of the registered 9,775,846-share resale shelf.

Key Terms

non-GAAP financial measures, Form 8-K, Regulation FD

3 terms

non-GAAP financial measures financial

"The Company has disclosed financial measurements in this earnings release that present financial information considered to be non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

Form 8-K regulatory

"file an investor presentation as an exhibit to a Current Report on Form 8-K filed with the Securities and Exchange Commission"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

Regulation FD regulatory

"for complying with our disclosure obligations under Regulation FD."

Regulation FD is a rule that prevents company insiders, like executives, from sharing important information with some people before others get it. It matters because it helps ensure all investors have equal access to key news, making the stock market fairer and reducing chances of insider trading.

AI-generated analysis. Not financial advice.

02/04/2026 - 04:05 PM

Q2 REVENUE OF $1.69B, INCREASED 17% Y/Y; AND, ON A PRO FORMA BASIS, 22% Y/Y ADJUSTED FOR SALE OF AEROSPACE & DEFENSE BUSINESS
Q2 GAAP GROSS MARGIN OF 36.9%, INCREASED 145 bps Y/Y; Q2 NON-GAAP GROSS MARGIN OF 39.0%, INCREASED 77 bps Y/Y
Q2 GAAP EPS OF $0.76, INCREASED 71% Y/Y; Q2 NON-GAAP EPS OF $1.29, INCREASED 35% Y/Y

SAXONBURG, Pa., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR) (“Coherent,” “We,” or the “Company”), a global leader in photonics, announced financial results today for its second quarter of fiscal year 2026 ended December 31, 2025.

Revenue for the second quarter of fiscal 2026 was $1.69 billion, with GAAP gross margin of 36.9% and GAAP net income of $0.76 per diluted share. On a non-GAAP basis, gross margin was 39.0% with net income per diluted share of $1.29.

Jim Anderson, CEO, said, “We delivered strong year-over-year revenue growth in the December quarter, driven by another quarter of strong demand in our datacenter and communications segment. We expect continued strong growth in the second-half of fiscal 2026 and throughout fiscal 2027 based on strong datacenter and communications demand and our continued production capacity expansion along with improving demand in our Industrial segment.”

Sherri Luther, CFO, said, “Significant revenue growth together with gross margin expansion drove a year-over-year increase in our GAAP and non-GAAP EPS. Given the strength of demand, we continue to ramp our capital investment to drive capacity increases to support our business outlook.”


Selected Second Quarter Financial Results and Comparisons (in millions, except percentages and per share data)
Table 1
	GAAP Financial Results (unaudited)

	Q2 FY26			Q1 FY26			Q2 FY25			Q/Q		Y/Y		Q2 FY26 YTD			Q2 FY25 YTD			YTD/YTD


Revenues	$	1,686		$	1,581		$	1,435		6.6%		17.5%		$	3,267		$	2,783		17.4%
Gross Margin %		36.9	%		36.6	%		35.5	%	35 bps		145 bps			36.8	%		34.8	%	195 bps
R&D Expense %		9.8	%		9.8	%		10.0	%	3 bps		(20) bps			9.8	%		9.9	%	(9) bps
SG&A Expense %		15.3	%		15.9	%		15.4	%	(56) bps		(4) bps			15.6	%		16.2	%	(53) bps
Operating Expenses	$	439		$	320		$	373		37.1%		17.8%		$	759		$	757		0.2%
Operating Income⁽¹⁾	$	184		$	259		$	137		(29.0)%		34.4%		$	443		$	212		108.9%
Operating Margin		10.9	%		16.4	%		9.5	%	(548) bps		137 bps			13.6	%		7.6	%	594 bps
Net Earnings Attributable to Coherent Corp.	$	147		$	226		$	103		(35.1)%		41.9%		$	373		$	129		188.6%
Diluted Earnings Per Share	$	0.76		$	1.19		$	0.44		$	(0.43)	$	0.32	$	1.95		$	0.41		$	1.54

⁽¹⁾ Operating Income is defined as earnings (loss) before income taxes, interest expense, and other expense or income, net.


Selected Second Quarter Financial Results and Comparisons (in millions, except percentages and per share data)
Table 1, continued
	Non-GAAP Financial Results (unaudited)₍₁₎₍₂₎

	Q2 FY26			Q1 FY26			Q2 FY25			Q/Q		Y/Y		Q2 FY26 YTD			Q2 FY25 YTD			YTD/YTD


Revenues	$	1,686		$	1,581		$	1,435			6.6%		17.5%	$	3,267		$	2,783			17.4%
Gross Margin %		39.0	%		38.7	%		38.2	%	24 bps		77 bps			38.9	%		37.5	%	137 bps
R&D Expense %		9.4	%		9.4	%		9.6	%	7 bps		(16) bps			9.4	%		9.5	%	(7) bps
SG&A Expense %		9.6	%		9.8	%		10.2	%	(22) bps		(53) bps			9.7	%		10.7	%	(96) bps
Operating Expenses	$	321		$	304		$	283			5.7%		13.4%	$	625		$	561			11.4%
Operating Income	$	336		$	309		$	265			8.8%		26.8%	$	645		$	483			33.7%
Operating Margin		19.9	%		19.5	%		18.5	%	40 bps		147 bps			19.7	%		17.3	%	240 bps
Net Earnings Attributable to Coherent Corp.	$	248		$	221		$	185			12.3%		34.3%	$	469		$	323			45.2%
Diluted Earnings Per Share	$	1.29		$	1.16		$	0.95		$	0.13	$	0.34	$	2.45		$	1.63		$	0.82

⁽¹⁾During the second fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company’s financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation.

⁽²⁾ The Company has disclosed financial measurements in this earnings release that present financial information 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, 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.

Business Outlook – Third Quarter Fiscal 2026⁽¹⁾

At the end of January 2026, we closed the sale of our product division based in Munich Germany that makes tools for materials processing. Our Q3 outlook includes $5M of revenue from the period prior to the close of the sale of the Munich tools business at the end of January.

Revenue for the third quarter of fiscal 2026 is expected to be between $1.70 billion and $1.84 billion.
Gross margin percentage for the third quarter of fiscal 2026 is expected to be between 38.5% and 40.5% on a non-GAAP basis.
Total operating expenses for the third quarter of fiscal 2026 are expected to be between $320 million and $340 million on a non-GAAP basis.
Tax rate for the third quarter of fiscal 2026 is expected to be between 18% and 20% on a non-GAAP basis.
EPS for the third quarter of fiscal 2026 is expected to be between $1.28 and $1.48 on a non-GAAP basis.

⁽¹⁾ 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 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 second quarter of fiscal 2026 and business outlook on Wednesday, February 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-K filed 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 February 4, 2026. We also may, from time to time, post other important information for 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 estimates and projections for our business outlook for the third quarter of fiscal 2026, 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 contained herein 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) risks relating to future integration and/or restructuring actions; (iv) fluctuations in purchasing patterns of customers and end users; (v) the ability of the Company to retain and hire key employees; (vi) the terms of the Company’s indebtedness and ability to service such debt(vii) the timely release of new products and acceptance of such new products by the market; (viii) the introduction of new products by competitors and other competitive responses; (ix) the Company’s ability to assimilate acquired businesses, and realize synergies, cost savings, and opportunities for growth in connection therewith, together with the risks, costs, and uncertainties associated with such acquisitions; (x) the risks to realizing the benefits of investments in R&D and commercialization of innovations; (xi) the risks that the Company’s stock price will not trade in line with industrial technology leaders; (xii) the impact of trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries; and/or (xiii) 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, 2025, 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.

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

Table 2
Coherent Corp. and Subsidiaries
Condensed Consolidated Statements of Earnings*
	THREE MONTHS ENDED
	Dec 31,			Sep 30			Dec 31,
$ Millions, except per share amounts (unaudited)		2025			2025			2024


Revenues	$	1,685.6		$	1,581.4		$	1,434.7

Costs, Expenses & Other Expense (Income)
Cost of goods sold		1,062.8			1,002.2			925.3
Research and development		165.7			154.9			143.9
Selling, general and administrative		258.5			252.1			220.6
Restructuring charges		3.6			19.3			8.0
Impairment of assets held-for-sale		11.0			9.1			—
Gain on sale of business		—			(115.2	)		—
Interest expense		45.9			58.7			64.3
Other expense (income), net		(29.9	)		(16.5	)		(55.8	)
Total Costs, Expenses, & Other Expense		1,517.6			1,364.5			1,306.3

Earnings Before Income Taxes		168.0			216.9			128.4

Income Taxes		24.2			(8.3	)		26.9

Net Earnings		143.8			225.2			101.5
Net Loss Attributable to Noncontrolling Interests		(2.9	)		(1.2	)		(1.8	)
Net Earnings Attributable to Coherent Corp.	$	146.7		$	226.3		$	103.4

Less: Dividends on Preferred Stock		1.6			33.5			32.3
Net Earnings Available to the Common Shareholders	$	145.1		$	192.9		$	71.1

Basic Earnings Per Share	$	0.87		$	1.24		$	0.46

Diluted Earnings Per Share	$	0.76		$	1.19		$	0.44

Average Shares Outstanding - Basic		167.5			156.2			154.8
Average Shares Outstanding - Diluted		192.8			190.7			160.0

*Amounts may not recalculate due to rounding.

Table 2
Coherent Corp. and Subsidiaries
Condensed Consolidated Statements of Earnings*
(Continued)	SIX MONTHS ENDED
	Dec 31,			Dec 31,
$ Millions, except per share amounts (unaudited)		2025			2024


Revenues	$	3,267.0		$	2,782.8

Costs, Expenses & Other Expense (Income)
Cost of goods sold		2,065.0			1,813.3
Research and development		320.6			275.5
Selling, general and administrative		510.6			449.6
Restructuring charges		22.9			32.4
Impairment of assets held-for-sale		20.1			—
Gain on sale of business		(115.2	)		—
Interest expense		104.7			130.9
Other expense (income), net		(46.5	)		(66.6	)
Total Costs, Expenses, & Other Expense		2,882.1			2,635.1

Earnings Before Income Taxes		384.9			147.7

Income Taxes		15.9			21.3

Net Earnings		369.0			126.4
Net Loss Attributable to Noncontrolling Interests		(4.1	)		(2.9	)
Net Earnings Attributable to Coherent Corp.	$	373.1		$	129.3

Less: Dividends on Preferred Stock		35.1			64.1
Net Earnings Available to the Common Shareholders	$	338.0		$	65.2

Basic Earnings Per Share	$	2.09		$	0.42

Diluted Earnings Per Share	$	1.95		$	0.41

Average Shares Outstanding - Basic		161.8			154.2
Average Shares Outstanding - Diluted		191.7			159.3

*Amounts may not recalculate due to rounding.

Table 3
Coherent Corp. and Subsidiaries
Condensed Consolidated Balance Sheets*

	December 31,		June 30,
$ Millions (unaudited)	2025		2025


Assets
Current Assets
Cash and cash equivalents	$	863.7	$	909.2
Restricted cash, current		35.5		8.9
Accounts receivable		1,054.6		964.1
Inventories		1,847.9		1,437.6
Prepaid and refundable income taxes		44.1		55.8
Prepaid and other current assets		547.6		551.6
Total Current Assets		4,393.4		3,927.2
Property, plant & equipment, net		2,117.0		1,877.5
Goodwill		4,462.8		4,471.1
Other intangible assets, net		3,064.1		3,204.7
Deferred income taxes		69.1		53.4
Restricted cash, non-current		629.6		714.8
Other assets		351.8		662.2
Total Assets	$	15,087.7	$	14,910.9

Liabilities, Mezzanine Equity and Equity
Current Liabilities
Current portion of long-term debt	$	106.5	$	188.3
Accounts payable		1,118.5		847.0
Operating lease current liabilities		43.0		41.6
Accruals and other current liabilities		683.1		718.0
Total Current Liabilities		1,951.1		1,794.8
Long-term debt		3,245.4		3,498.6
Deferred income taxes		643.3		711.7
Operating lease liabilities		151.6		165.2
Other liabilities		208.1		259.3
Total Liabilities		6,199.4		6,429.7
Total Mezzanine Equity		—		2,483.3
Total Coherent Corp. Shareholders' Equity		8,539.3		5,644.5
Noncontrolling interests		349.0		353.5
Total Equity		8,888.3		5,998.0
Total Liabilities, Mezzanine Equity and Equity	$	15,087.7	$	14,910.9

*Amounts may not recalculate due to rounding.

Table 4
Coherent Corp. and Subsidiaries
Condensed Consolidated Statements of Cash Flows*	SIX MONTHS ENDED
	Dec 31,			Dec 31,
$ Millions (unaudited)		2025			2024


Cash Flows from Operating Activities
Net cash provided by operating activities	$	103.9		$	340.4

Cash Flows from Investing Activities
Additions to property, plant & equipment		(257.5	)		(197.7	)
Proceeds from the sale of business		385.8			27.0
Proceeds from sale of equity investment		31.5			—
Other investing activities		(1.5	)		(1.1	)
Net cash provided by (used in) investing activities		158.3			(171.8	)

Cash Flows from Financing Activities
Proceeds from borrowings of Term A Facility		1,250.0			—
Proceeds from borrowings of Term B Facility		3.3			—
Proceeds from borrowings of revolving credit facilities		313.6			—
Payments on existing debt		(1,659.4	)		(250.2	)
Payments on borrowings under revolving credit facilities		(251.3	)		—
Debt issuance costs		(9.1	)		—
Proceeds from exercises of stock options and purchases under employee stock purchase plan		30.1			29.2
Payments in satisfaction of employees' minimum tax obligations		(44.6	)		(45.0	)
Payment of dividends		(11.4	)		—
Other financing activities		0.6			(0.5	)
Net cash used in financing activities		(378.4	)		(266.5	)

Effect of exchange rate changes on cash and cash equivalents		12.2			(23.1	)

Net decrease in cash and cash equivalents		(104.1	)		(121.0	)

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		1,632.9			1,789.7

Cash, Cash Equivalents, and Restricted Cash at End of Period	$	1,528.8		$	1,668.6

*Amounts may not recalculate due to rounding.

Table 5

Segment Revenues*	THREE MONTHS ENDED						SIX MONTHS ENDED
	Dec 31,		Sep 30,		Dec 31,		Dec 31,		Dec 31,
$ Millions (unaudited)	2025		2025		2024		2025		2024


Revenues:
Datacenter & Communications	$	1,208.0	$	1,090.0	$	904.6	$	2,298.0	$	1,768.2
Industrial		477.6		491.4		530.1		969.0		1,014.6
Consolidated	$	1,685.6	$	1,581.4	$	1,434.7	$	3,267.0	$	2,782.8

*Amounts may not recalculate due to rounding.

Table 6
Reconciliation of GAAP Measures to Non-GAAP Measures*	THREE MONTHS ENDED									SIX MONTHS ENDED
	Dec 31,			Sep 30,			Dec 31,			Dec 31,			Dec 31,
$ Millions, except per share amounts (unaudited)		2025			2025			2024			2025		2024⁽¹⁾


Gross margin on GAAP basis	$	622.8		$	579.2		$	509.4		$	1,202.0		$	969.5
Share-based compensation		6.3			5.9			5.6			12.2			11.3
Amortization of acquired intangibles		27.7			27.8			30.4			55.5			60.8
Integration, site consolidation and other₍₂₎		0.3			(0.3	)		2.6			—			1.7
Gross margin on non-GAAP basis	$	657.1		$	612.6		$	548.0		$	1,269.6		$	1,043.3

Research & development on GAAP basis	$	165.7		$	154.9		$	143.9		$	320.6		$	275.5
Share-based compensation		(6.7	)		(6.8	)		(5.7	)		(13.5	)		(11.0	)
Amortization of acquired intangibles		(0.2	)		(0.2	)		(0.6	)		(0.4	)		(1.3	)
Integration, site consolidation and other₍₂₎		—			—			(0.2	)		—			0.1
Research & development on non-GAAP basis	$	158.8		$	147.9		$	137.4		$	306.7		$	263.3

Selling, general and administrative on GAAP basis	$	258.5		$	252.1		$	220.6		$	510.6		$	449.6
Share-based compensation		(31.6	)		(32.0	)		(29.7	)		(63.6	)		(54.2	)
Amortization of acquired intangibles		(42.6	)		(41.5	)		(40.7	)		(84.1	)		(81.5	)
Integration, site consolidation and other₍₂₎		(21.1	)		(22.5	)		(4.5	)		(43.6	)		(16.3	)
Financing fees₍₃₎		(0.8	)		(0.3	)		—			(1.1	)		—
Selling, general and administrative on non-GAAP basis	$	162.3		$	155.8		$	145.7		$	318.0		$	297.5

Restructuring charges on GAAP basis	$	3.6		$	19.3		$	8.0		$	22.9		$	32.4
Restructuring charges₍₄₎		(3.6	)		(19.3	)		(8.0	)		(22.9	)		(32.4	)
Restructuring charges on non-GAAP basis	$	—		$	—		$	—		$	—		$	—

Impairment of assets held-for-sale on GAAP basis	$	11.0		$	9.1		$	—		$	20.1		$	—
Impairment of assets held-for-sale₍₅₎		(11.0	)		(9.1	)		—			(20.1	)		—
Impairment of assets held-for-sale on non-GAAP basis	$	—		$	—		$	—		$	—		$	—

Gain on sale of business on GAAP basis	$	—		$	(115.2	)	$	—		$	(115.2	)	$	—
Gain on sale of business₍₆₎		—			115.2			—			115.2			—
Gain on sale of business on non-GAAP basis	$	—		$	—		$	—		$	—		$	—

Operating income on GAAP basis	$	184.0		$	259.1		$	136.9		$	443.1		$	212.1
Share-based compensation		44.6			44.7			41.0			89.3			76.5
Amortization of acquired intangibles		70.5			69.5			71.7			140.0			143.6
Restructuring charges₍₄₎		3.6			19.3			8.0			22.9			32.4
Impairment of assets held-for-sale₍₅₎		11.0			9.1			—			20.1			—
Gain on sale of business₍₆₎		—			(115.2	)		—			(115.2	)		—
Integration, site consolidation and other₍₂₎		21.4			22.2			7.3			43.6			17.9
Financing fees₍₃₎		0.8			0.3			—			1.1			—
Operating income on non-GAAP basis	$	336.0		$	308.9		$	264.9		$	645.0		$	482.5

Table 6
Reconciliation of GAAP Measures to Non-GAAP Measures*
(Continued)	THREE MONTHS ENDED									SIX MONTHS ENDED
	Dec 31,			Sep 30,			Dec 31,			Dec 31,			Dec 31,
$ Millions, except per share amounts (unaudited)		2025			2025			2024			2025		2024⁽¹⁾


Interest and other (income) expense, net on GAAP basis	$	16.0		$	42.2		$	8.5		$	58.2		$	64.4
Foreign currency exchange gains (losses), net		2.4			0.8			35.1			3.2			25.3
Gain on sale of investment₍₇₎		14.8			6.7			—			21.5			—
Financing fees₍₃₎		—			(12.1	)		—			(12.1	)		—
Interest and other (income) expense, net on non-GAAP basis	$	33.2		$	37.6		$	43.6		$	70.8		$	89.7

Income taxes on GAAP basis	$	24.2		$	(8.3	)	$	26.9		$	15.9		$	21.3
Tax impact of non-GAAP measures₍₈₎		33.4			59.9			11.5			93.3			51.4
Income taxes on non-GAAP basis	$	57.5		$	51.5		$	38.4		$	109.1		$	72.7

Net earnings attributable to Coherent Corp. on GAAP basis	$	146.7		$	226.3		$	103.4		$	373.1		$	129.3
Share-based compensation		44.6			44.7			41.0			89.3			76.5
Amortization of acquired intangibles		70.5			69.5			71.7			140.0			143.6
Foreign currency exchange gains		(2.4	)		(0.8	)		(35.1	)		(3.2	)		(25.3	)
Restructuring charges₍₄₎		3.6			19.3			8.0			22.9			32.4
Impairment of assets held-for-sale₍₅₎		11.0			9.1			—			20.1			—
Gain on sale of business₍₆₎		—			(115.2	)		—			(115.2	)		—
Integration, site consolidation and other₍₂₎		21.4			22.2			7.3			43.6			17.9
Gain on sale of investment₍₇₎		(14.8	)		(6.7	)		—			(21.5	)		—
Financing fees₍₃₎		0.8			12.4			—			13.2			—
Tax impact of non-GAAP measures₍₈₎		(33.4	)		(59.9	)		(11.5	)		(93.3	)		(51.4	)
Net earnings attributable to Coherent Corp. on non-GAAP basis	$	248.2		$	220.9		$	184.8		$	469.1		$	323.1

Per share data:
Net earnings on GAAP basis
Basic Earnings Per Share	$	0.87		$	1.24		$	0.46		$	2.09		$	0.42
Diluted Earnings Per Share	$	0.76		$	1.19		$	0.44		$	1.95		$	0.41

Net earnings on non-GAAP basis
Basic Earnings Per Share	$	1.47		$	1.20		$	0.99		$	2.68		$	1.68
Diluted Earnings Per Share	$	1.29		$	1.16		$	0.95		$	2.45		$	1.63

* Amounts may not recalculate due to rounding.
⁽¹⁾ During the second fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company’s financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation.
⁽²⁾Integration, site consolidation and other costs include retention and severance payments and other integration costs related to the acquisition of Coherent, Inc., implementation of common technology systems and costs related business divestitures.
⁽³⁾Financing fees includes debt extinguishment costs and various fees related to closing the new Credit Agreement and repricing our Term Loan B as well as the conversion of Preferred Stock to Common Stock.
⁽⁴⁾Restructuring charges include non-cash impairment charges for production assets and improvements on leased facilities, loss on sale of a facility, severance, contract termination costs and other costs related to the restructuring plans.
⁽⁵⁾Impairment of assets held-for-sale relate to several entities classified as held-for-sale at December 31, 2025, September 30, 2025 and/or June 30, 2025.
⁽⁶⁾Gain on sale of business is due to the sale of our aerospace and defense business.
⁽⁷⁾Gain on sale of investment is due to the sale of shares in an equity method investment.
⁽⁸⁾ The Company adopted a full-year, normalized tax rate for the computation of the non-GAAP income tax provision for 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 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 year 2026, the Company's projected non-GAAP normalized tax rate is 19% and will be applied to each quarter of fiscal year 2026. The Company's non-GAAP normalized tax rate on non-GAAP net income may be adjusted during the year to account for events or trends that the Company believes materially impact the original annual non-GAAP normalized 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-GAAP financial 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.

Table 7

GAAP Earnings Per Share Calculation*
	THREE MONTHS ENDED									SIX MONTHS ENDED
$ Millions, except per share amounts (unaudited)	Dec 31,			Sep 30,			Dec 31,			Dec 31,			Dec 31,
		2025			2025			2024			2025			2024


Numerator
Net earnings attributable to Coherent Corp.	$	146.7		$	226.3		$	103.4		$	373.1		$	129.3
Deduct Series B redeemable preferred dividends		(1.6	)		(33.5	)		(32.3	)		(35.1	)		(64.1	)
Basic earnings available to common shareholders	$	145.1		$	192.9		$	71.1		$	338.0		$	65.2

Effect of dilutive securities
Add back Series B Preferred deemed dividends	$	1.6		$	33.5		$	—		$	35.1		$	—
Diluted earnings available to common shareholders	$	146.7		$	226.3		$	71.1		$	373.1		$	65.2

Denominator
Weighted average shares		167.5			156.2			154.8			161.8			154.2
Effect of dilutive securities:
Common stock equivalents		5.5			4.6			5.2			5.0			5.1
Series B Redeemable Preferred Stock		19.8			29.9			—			24.8			—
Diluted weighted average common shares		192.8			190.7			160.0			191.7			159.3

Basic earnings per common share	$	0.87		$	1.24		$	0.46		$	2.09		$	0.42

Diluted earnings per common share	$	0.76		$	1.19		$	0.44		$	1.95		$	0.41

*Amounts may not recalculate due to rounding.

Table 8

Non-GAAP Earnings Per Share Calculation*
	THREE MONTHS ENDED									SIX MONTHS ENDED
$ Millions, except per share amounts (unaudited)	Dec 31,			Sep 30,			Dec 31,			Dec 31,			Dec 31,
		2025			2025			2024			2025		2024⁽¹⁾


Numerator
Net earnings attributable to Coherent Corp. on non-GAAP basis	$	248.2		$	220.9		$	184.8		$	469.1		$	323.1
Deduct Series B redeemable preferred dividends		(1.6	)		(33.5	)		(32.3	)		(35.1	)		(64.1	)
Basic earnings available to common shareholders	$	246.6		$	187.5		$	152.6		$	434.0		$	259.0

Effect of dilutive securities
Add back Series B Preferred Stock dividends	$	1.6		$	33.5		$	—		$	35.1		$	—
Diluted earnings available to common shareholders	$	248.2		$	220.9		$	152.6		$	469.1		$	259.0

Denominator
Weighted average shares		167.5			156.2			154.8			161.8			154.2
Effect of dilutive securities:
Common stock equivalents		5.5			4.6			5.2			5.0			5.1
Series B Redeemable Preferred Stock		19.8			29.9			—			24.8			—
Diluted weighted average common shares		192.8			190.7			160.0			191.7			159.3

Basic earnings per common share on non-GAAP basis	$	1.47		$	1.20		$	0.99		$	2.68		$	1.68

Diluted earnings per common share on non-GAAP basis	$	1.29		$	1.16		$	0.95		$	2.45		$	1.63

*Amounts may not recalculate due to rounding.

⁽¹⁾ During the second fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company’s financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation.

FAQ

What were Coherent (COHR) Q2 FY2026 revenue and EPS results?

Coherent reported Q2 FY2026 revenue of $1.69B and GAAP EPS of $0.76. According to the company, non-GAAP EPS was $1.29 and non-GAAP gross margin was 39.0%, both up year-over-year.

How did Coherent (COHR) gross margins change in Q2 FY2026?

Gross margins expanded year-over-year, with GAAP margin at 36.9% and non-GAAP at 39.0%. According to the company, this reflects stronger product mix and operational improvements in datacenter and communications.

What guidance did Coherent (COHR) give for Q3 FY2026 revenue and margins?

Coherent guided Q3 FY2026 revenue between $1.70B and $1.84B and non-GAAP gross margin of 38.5%–40.5%. According to the company, guidance includes $5M of revenue pre-close from the Munich tools business sale.

Why did Coherent (COHR) operating income fall Q/Q in Q2 FY2026?

GAAP operating income fell to $184M from $259M in Q1 FY26, lowering operating margin Q/Q. According to the company, higher operating expenses and capital ramp contributed to the quarterly decline.

What impact does the Munich tools business sale have on Coherent (COHR)?

Coherent closed the Munich tools business sale at end of January and included $5M of pre-close revenue in Q3 outlook. According to the company, the sale removes future revenue from that product division and is reflected in guidance.

Coherent Corp. Reports Second Quarter Fiscal 2026 Results