By Simply Wall St
Publication Date: 2026-05-17 00:17:00
In early May 2026, Coherent Corp. reported third-quarter fiscal 2026 results showing sales of US$1.81 billion and net income of US$191.40 million, sharply higher than a year earlier, alongside revenue guidance of US$1.91 billion to US$2.05 billion for the fourth quarter.
These results came as Coherent deepened its role in AI data center infrastructure, underpinned by long-term supply agreements and a multi‑billion‑dollar partnership with NVIDIA that aligns its expanded photonics capacity with surging AI networking demand.
We’ll now examine how Coherent’s NVIDIA partnership and AI datacenter momentum may reshape the earlier investment narrative and key assumptions.
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Coherent Investment Narrative Recap
To own Coherent today, you need to believe AI data center optics and Coherent’s indium phosphide platform can support sustained growth and healthier margins, even as industrial and cyclical businesses remain uneven. The latest Q3 FY2026 beat and strong Q4 guidance reinforce the AI data center story as the main near term catalyst, while the sharp share price run up and rich multiples keep valuation risk front and center rather than fundamentally changing the core thesis.
The most relevant recent development is NVIDIA’s US$2.0 billion…
