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Coherent keeps 'Buy' rating despite 34% stock drop, driven by strong Q3 revenue and growth outlook.

Analyst Insights
29 Jul 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Coherent's stock fell 34%, but analysts maintain a 'Buy' rating due to strong Q3 FY26 results showing 20.5% revenue growth to $1.81 billion and a 55% rise in non-GAAP EPS. Growth is supported by robust execution of InP transceivers, a key partnership with Nvidia, and expanding opportunities with CPO, OCS, and Apple agreements. Risks include delays in CPO adoption, negative free cash flow until FY27, customer concentration, and rising competition. The company’s long-term growth potential remains strong despite short-term volatility.

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