• Coherent Corp. reported financial results for the quarter and year ended June 30, 2025, with annual sales rising to US$5.81 billion and a return to full-year profitability, alongside new guidance for first quarter 2026 revenue between US$1.46 billion and US$1.60 billion.
• Apple announced the expansion of its multiyear supply agreement with Coherent, ensuring continued production of VCSELs that power advanced optoelectronic capabilities in Apple devices from Coherent’s Texas facility.
• We'll examine how Coherent's expanded Apple partnership and strong sales growth may impact its broader investment narrative.

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Coherent Investment Narrative Recap

To be a Coherent shareholder, you need to believe in the company’s ability to convert its technology leadership and customer partnerships, such as with Apple, into margin expansion and resilient earnings growth, despite fluctuations in end-market demand and competitive pressure. The company’s return to full-year profitability on US$5.81 billion in sales and its continued revenue gains are positive, but short-term swings in demand, especially from large customers, remain a material risk, as do ongoing swings in silicon carbide and datacom markets.

Among the recent announcements, Coherent’s expanded multiyear supply agreement with Apple stands out. This contract secures ongoing demand for Coherent’s VCSELs, confirms Apple’s commitment to its Texas facility, and directly supports one of the most important short-term catalysts: a more diversified and stable revenue base while maintaining access to high-value markets.

Yet, despite this increased visibility, investors should also be mindful that ongoing customer concentration could...

Read the full narrative on Coherent (it's free!)

Coherent's outlook anticipates $7.7 billion in revenue and $732.0 million in earnings by 2028. This projection calls for a 9.8% annual revenue growth rate and an $812.5 million increase in earnings from the current level of -$80.5 million.

Uncover how Coherent's forecasts yield a $111.44 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Six public fair value estimates from the Simply Wall St Community range widely from US$51.56 to US$111.44 per share. While the Apple contract boosts near-term sales visibility, future revenue swings tied to customer concentration could heavily influence earnings, so consider multiple viewpoints before making a judgment.

Explore 6 other fair value estimates on Coherent - why the stock might be worth 45% less than the current price!

Build Your Own Coherent Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Coherent research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Coherent research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Coherent's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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