CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
COHR reported Q3 FY 26 revenue of $1.81B (+21% Y/Y), beating consensus of $1.78B, while non-GAAP EPS of $1.41 (+55% Y/Y) exceeded the Street's $1.39 view. Datacenter & Communications revenue accelerated to 41% Y/Y growth, representing 75% of sales, while Industrial revenue declined 2% on a pro forma basis amid macro headwinds. We view the impressive margin expansion as validation of strong operational execution, with non-GAAP gross margin reaching 39.6% (+105 bps Y/Y) and operating margin hitting 20.3% (+163 bps Y/Y). Q4 guidance exceeded expectations with revenue midpoint of $1.98B (+29% Y/Y) and non-GAAP EPS of $1.62 (+62%) vs. consensus of $1.91B and $1.54. We believe CPO momentum continues building with an exceptionally large purchase order secured and NVDA's equity investment providing additional validation. We expect the planned doubling of InP capacity by 2027 to unlock further growth as higher-margin 1.6T transceivers and 6-inch wafers drive favorable product mix.