Stifel raised its price objective on Coherent (NYSE: COHR) to $235.00 from $220.00 on Thursday and retained a Buy rating after the optics and photonics specialist released its fiscal second-quarter 2026 results. The new target remains below the analyst high mark of $325, and COHR has returned 108% over the past year, according to InvestingPro data.
For fiscal Q2 2026, Coherent reported revenue of $1.69 billion and adjusted earnings per share of $1.29. Both figures topped consensus expectations of $1.64 billion in revenue and $1.21 in EPS, and also exceeded the midpoints of management’s guidance of $1.63 billion and $1.20. On a last-twelve-month basis, the company’s revenue reached $6.29 billion, an 18.6% increase year-over-year.
Within the business, the Datacenter & Communications segment expanded 34% year-over-year. Management attributed that growth to strong uptake of 800G and 1.6T transceivers, describing a "step function increase" in bookings along with extended visibility tied to AI-driven demand. The company noted Data Center bookings rose fourfold during the period.
Coherent provided fiscal third-quarter 2026 revenue and EPS guidance that came in above consensus, and signaled that it expects fiscal 2027 revenue growth to surpass fiscal 2026. Stifel models fiscal 2027 revenue growth at roughly 19% versus fiscal 2026. The positive outlook has coincided with analysts revising estimates upward: 14 analysts have increased their earnings forecasts for the upcoming period, per InvestingPro data.
Operationally, Coherent is in the process of transitioning to a 6-inch indium phosphide (InP) fabrication facility. Stifel characterized the move as a structural tailwind for gross margin expansion over time. The company reported a current gross profit margin of 36.4% and is operating with a moderate debt profile, factors Stifel views as supportive for future margin improvement as production shifts to the larger InP wafers.
Other broker reactions tracked in the same reporting cycle echoed the constructive tone. Needham reiterated a Buy rating and kept a price target of $235.00, citing strong AI demand as a rationale. JPMorgan raised its price target to $245.00 from $215.00 and maintained an Overweight rating, pointing to new customer wins and improved demand visibility across Coherent’s optical products portfolio.
For investors and analysts, the quarter offered multiple data points: revenue and EPS beats, accelerated bookings in data center-facing products, above-consensus near-term guidance, and management commentary linking demand strength to AI-related deployments. At the same time, the company’s strategic manufacturing transition and analyst estimate revisions form key elements underpinning near- and medium-term expectations.
For those seeking additional proprietary analysis, InvestingPro provides a Pro Research Report that includes 17 additional ProTips on COHR, per the data referenced in the reporting on analyst coverage and performance.
Key takeaways from Coherent’s fiscal Q2 results include stronger-than-expected top- and bottom-line performance, a material uplift in data center bookings, and a production shift intended to support margin expansion. Broker updates in the wake of the results raised select price targets and reinforced buy-side interest, while analyst estimate revisions reflect renewed confidence in the company’s near-term earnings trajectory.