Coherent Corp is projected to report consensus revenue of $2.30 billion and non-GAAP EPS of $1.98 for the fiscal first quarter, while the stock currently trades at $199.95, significantly below the $402.80 average analyst price target.
The primary focus for investors is the growth of the Datacom & Communications segment, which is expected to drive top-line performance through the aggressive ramp-up of 800G and 1.6T optical transceivers for AI data centers.
Analysts are specifically monitoring the expansion of internal Indium Phosphide manufacturing capacity, which management aims to double to alleviate supply constraints for high-speed connectivity components. Furthermore, the market is evaluating the impact of NVIDIA’s recent $2 billion investment and a multi-year supply agreement that secures demand visibility through the end of the decade.