Coherent Corp.

Company facts

Industry

Optical Instruments & Lenses

Headquarters

Saxonburg, Pennsylvania

Most recent report

8-K, filed Aug 31, 2026

Incorporated

Pennsylvania

Filings on record

1,000+ filings

On EDGAR

CIK 820318

Fiscal year ends

June

Filer status

Large accelerated filer

What to read: FY2026 10-K

SECSift found 4 of 27 sections worth reading, with 5 positive, 10 notable, and 8 negative flags.

• Business (Item 1)

  Segment realignment, huge headcount jump, NVIDIA deal, CHIPS Act terms.
  Positive

  • Entered multi-year strategic supply agreement with NVIDIA for lasers and optical products for next-gen AI infrastructure.
  • Received $50M preliminary memorandum of terms under CHIPS Act to support expanded Sherman, TX facility.
  Notable

  • Segments cut from 3 (Networking, Materials, Lasers) to 2 (Datacenter & Communications, Industrial) in FY2026.
  • Workforce grew by ~21,000, from ~30,000 (FY2025) to ~51,000 (FY2026), a 70% increase.
  • Two customers each contributed >10% of revenue in FY2026, same as prior year, revenue concentration risk.
  • R&D spend rose to $723M in FY2026 from $582M in FY2025 (+24%) and $479M in FY2024.

• Risk Factors (Item 1A)

  Multiple material changes and new company-specific risks added vs. prior year.
  Notable

  • New risk factor added on strategic capacity expansions, including reliance on CHIPS Act and other incentives.
  • Debt fell from ~$3.7B (June 2025) to ~$3.2B (June 2026); Term B refi'd to lower-cost Term A.
  • Max leverage covenant raised from 4.00x to 4.25x, giving more headroom; revolver capacity more than doubled to $664M.
  Negative

  • AI demand may not last; DeepSeek-style efficiencies could cut need for datacenter infrastructure Coherent supplies.
  • Two customers each over 10% of revenue in fiscal 2026, making the company vulnerable to order changes.
  • Restructuring pre-tax charges jumped from ~$200M (FY2023-25) to ~$370M (FY2023-26), an increase of ~$170M.
  • BIS inquiry into past Huawei sales ongoing, penalties possible, no loss estimate given.

• Management's Discussion (Item 7)

  NVIDIA deal, revenue/earnings surge, OCF collapse, goodwill thin margin, and huge purchase commitments.
  Positive

  • Revenue up 23% to $7,118M (FY2026) from $5,810M, driven by AI datacenter demand.
  • Datacenter & Communications segment revenue up 40% to $5,275M; segment profit up 47% to $1,330M (FY2026).
  • Total debt reduced to $3,222M (June 30, 2026) from $3,687M, with $502M in voluntary payments during FY2026.
  Notable

  • NVIDIA invested $2B in common stock and signed a multi-year, multi-billion-dollar purchase commitment (Mar 2, 2026).
  Negative

  • Lasers reporting unit goodwill ($3.1B) has only 8% headroom above carrying value as of April 1, 2026.
  • Operating cash flow fell to $80M (FY2026) from $634M, driven by significant inventory build to support growth.

• Financial Statements (Item 8)

  Core financials and notes: revenue swing, goodwill risk, BIS inquiry, NVIDIA investment.
  Notable

  • Recorded $39M CHIPS Act AMIC credit reduction to PPE in FY2026.
  • NVIDIA invested $2.0B for 7.8M shares at $256.80. Funds support capacity expansion.
  Negative

  • BIS inquiry into past Huawei sales; company stopped shipments; outcome uncertain, potential penalties.
  • One customer was 20% of revenue; a second was 12% in FY2026. High concentration.

What changed: FY2026 vs. FY2025

About 18% of COHR's FY2026 10-K is new information. 150 paragraphs were added, 317 changed, and 194 removed. Below are the most important lines SECSift identified.

• Financial Statements (Item 8) 156
• Management's Discussion (Item 7) 85
• Risk Factors (Item 1A) 77
• Business (Item 1) 69
• Form 10-K Summary (Item 16) 17
• Market for the Stock (Item 5) 4
• Properties (Item 2) 2
• Market Risk (Item 7A) 2
• Other Information (Item 9B) 1
• Exhibits (Item 15) 1