---
title: "Coherent's revenue reached $2,370 million. Operating cash was -$93 million, capex $776 million and new local borrowings $773 million."
description: "Coherent's first-quarter 8-K and 10-Q put revenue at $2,370.3 million against a $2.2–2.4 billion guide and set a second-quarter guide of $2.55–2.75 billion. Operating activities used $92.7 million, capex was $775.5 million, inventories reached $3,341.4 million, and Note 8 of the 10-Q shows new unsecured credit lines at foreign subsidiaries with $803 million drawn. Six pre-print lines read back, each with its accession."
canonical: https://evidinvest.com/blog/cohr-q1-fy27-read-back-2026-11-05
date: "2026-11-05"
last_updated: "2026-11-05"
author: "EvidInvest Team"
publisher: "EBD Sweden AB (EvidInvest)"
tags: ["COHR", "Coherent", "AI infrastructure", "optical networking", "earnings results", "8-K", "10-Q", "SEC filings"]
---

# Coherent's revenue reached $2,370 million. Operating cash was -$93 million, capex $776 million and new local borrowings $773 million.

- Published: 2026-11-05
- Author: EvidInvest Team, EvidInvest (published by EBD Sweden AB)
- Canonical URL: https://evidinvest.com/blog/cohr-q1-fy27-read-back-2026-11-05
- Research, not investment advice.

> Coherent's first-quarter 8-K and 10-Q put revenue at $2,370.3 million against a $2.2–2.4 billion guide and set a second-quarter guide of $2.55–2.75 billion. Operating activities used $92.7 million, capex was $775.5 million, inventories reached $3,341.4 million, and Note 8 of the 10-Q shows new unsecured credit lines at foreign subsidiaries with $803 million drawn. Six pre-print lines read back, each with its accession.

*Every figure below was read from Coherent's own filings on sec.gov and is cited with its accession:
the first-quarter results and slides furnished on Form 8-K on 4 November, the Form 10-Q filed the
same evening, and the FY2026 10-K and August 8-K that set the lines we read them against. Outlook
figures are Coherent's own and are labelled as company guidance. We show no analyst estimates, no
consensus and no share prices, because none of them is filed, and nothing from the earnings call,
which is not a filing either. Sums, differences and shares are our arithmetic on filed values and
are marked *(Ours.)* Research, not investment advice.*

On 4 November we listed [six filed lines](https://evidinvest.com/blog/cohr-lite-q3-2026-twelve-filed-lines-before-the-prints-2026-11-04)
to hold Coherent **[$COHR](https://evidinvest.com/valuation/COHR)** to. That evening it furnished its results on Form 8-K
(**accession `0001193125-26-447200`**) and, about a minute later, filed its 10-Q
(**`0000820318-26-000023`**). So this read-back can use both on the first day. Lumentum's lines are
in the same pre-print post; its read-back is a later post.

The release's first line is revenue of $2.37 billion. Its cash-flow table has three other numbers:
operating activities used $92.7 million, additions to property, plant and equipment were $775.5
million, and "Proceeds from borrowings of other credit facilities" were $773.4 million. The release
and the slides stop at that line. Note 8 of the 10-Q says what those facilities are.

## The six lines against the filings

| Line (4 Nov post) | Pre-print value | Q1 FY27, filed |
|---|---|---|
| 1. Revenue guide | $2.2–2.4 billion | $2,370.3 million |
| 1. Non-GAAP gross margin guide | 39.5–41.5% | 40.6% (GAAP 39.1%) |
| 1. Non-GAAP operating expenses guide | $400–420 million | $412 million |
| 1. Non-GAAP EPS guide | $1.85–2.05 | $2.09 (GAAP $1.90) |
| 2. Datacenter & Communications revenue | $1,615.0 million (Q4 FY26) | $1,951.7 million |
| 3. Operating cash flow | $79.5 million (FY2026) | $(92.7) million (quarter) |
| 3. Capex | $1,102.9 million (FY2026) | $775.5 million (quarter) |
| 4. Purchase commitments | $11.8 billion (30 June) | no total in the 10-Q |
| 5. Customers above 10% | 20% and 12% (FY2026) | no percentage in the 10-Q |
| 5. Inventories | $2,581.0 million (30 June) | $3,341.4 million |
| 6. Indium phosphide | "On track to double" by year-end | "doubled YoY one quarter early" |

*(Ours: revenue was $70.3 million above the $2.3 billion midpoint and $29.7 million below the top of
the range; non-GAAP EPS was $0.04 above the top of its range.)* Guides are from the 8-K of 12 August
(`0001193125-26-346860`); FY2026 values from the 10-K (`0000820318-26-000020`).

GAAP net income has a tax line behind it. Income taxes were a $22.8 million benefit on $358.8 million
of earnings before tax, so net earnings of $381.6 million exceed the pre-tax figure. The 10-Q gives
an effective rate of "a 6% benefit" and names discrete items, including "a change to the permanent
reinvestment assertion in China". The non-GAAP column uses a normalized 19% rate, or $98.3 million.

## 1. Datacenter & Communications: 82% of revenue, on a changed perimeter

Table 5 of the release (`0001193125-26-447200`), with segment profit from the 10-Q
(`0000820318-26-000023`), $ million:

| | Q1 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|
| Datacenter & Communications revenue | 1,090.0 | 1,615.0 | 1,951.7 |
| Industrial revenue | 491.4 | 430.5 | 418.6 |
| Datacenter & Communications segment profit | 269.3 | | 508.7 |
| Industrial segment profit | 116.6 | | 121.7 |

*(Ours: the segment was 82.3% of revenue; up 20.8% on the quarter and 79.1% on the year. Its profit
was 26.1% of its revenue, against 24.7% a year earlier.)*

Two filed details sit behind that table. The first is in Note 18: "effective July 1, 2026, we moved
certain business units across reportable segments. Prior period segment information has not been
recast, as the changes to our segment composition did not have a material impact". The goodwill note
puts $141 million of goodwill on that move, from Industrial to Datacenter & Communications. The
filings give no revenue figure for the units moved.

The second is on slide 7 of the presentation (Exhibit 99.2). The segment is "UP 21% QoQ | 79% YoY".
Underneath, Datacenter "increased 17% QoQ; 85% YoY" and Communications "increased 34% QoQ; 84% YoY".
*(Ours: both parts are shown growing faster on the year than the segment they sum to.)* The slide
gives no dollar figure for either part and no note on the base, so we cannot reproduce it. The
filings still do not split Datacenter from Communications in dollars.

The one sub-line with a figure is scale-across and data center interconnect: "Q1 revenue exceeded
$200M, roughly quadrupling YoY". In Industrial, the 10-Q attributes the 15% fall in revenue primarily
to the divestitures of aerospace and defense and of the Munich business. That is why the release's
"56% Y/Y ON A PRO FORMA BASIS" differs from the reported 49.9%.

## 2. Cash: one quarter took 70% of last year's capex

Cash-flow statement of the 10-Q (`0000820318-26-000023`), with fiscal 2026 from the 10-K
(`0000820318-26-000020`), $ million:

| | Q1 FY27 | Q1 FY26 | FY2026 |
|---|---|---|---|
| Net cash provided by (used in) operating activities | (92.7) | 46.0 | 79.5 |
| Additions to property, plant & equipment | (775.5) | (103.9) | (1,102.9) |
| Change in inventories | (737.1) | (219.1) | (1,183.0) |
| Capex additions in accounts payable, period-end | 527.7 | 71.6 | 371.8 |

*(Ours: operating cash less capex was −$868.2 million. The quarter's capex was 70.3% of all fiscal
2026 capex, and capex unpaid at the end of the quarter rose $155.9 million from June.)*

The 10-Q's reason for the operating line: "primarily driven by a significant increase in inventory
levels to support higher revenue growth, resulting in increased use of working capital." Accounts
payable supplied $429.8 million and contract liabilities $269.3 million. Those contract liabilities
are "payments received in advance of performance", and the balance rose to $333 million, $172 million
current and $161 million non-current, from $48 million and $15 million in June. *(Ours: $63 million in
June.)* The note does not say who paid.

Net property, plant and equipment reached $3,869.8 million, against $2,999.3 million at 30 June.
*(Ours: up $870.5 million, or 29.0%.)*

## 3. The financing side: Note 8

Line 3 of the pre-print asked for operating cash and capex side by side. The 10-Q adds the third
column, the debt table (`0000820318-26-000023`), $ million:

| | 30 Sep 2026 | 30 Jun 2026 |
|---|---|---|
| Term A Facility | 1,140.6 | 1,140.6 |
| Term B Facility | 1,080.0 | 1,080.0 |
| 5.00% Senior Notes | 990.0 | 990.0 |
| Other Credit Facilities | 802.8 | 28.0 |
| Total debt, after issuance costs | 4,000.6 | 3,222.2 |

In June, July and August, two foreign subsidiaries signed unsecured facilities with local lenders for
up to $475 million, in local currency, maturing in 2029, with $205 million outstanding. On 12 August
another foreign subsidiary signed a facility of "approximately $950 million", half in local currency
and half in dollars, maturing 36 months after first use on 17 August, with $598 million outstanding.
Borrowings may fund "working capital and other permitted operating requirements of the borrower,
including the repayment of existing intercompany working capital loans". For each, "Neither the
Company, nor any other of its subsidiaries, is a party to, or a guarantor of" the facility. The 10-Q
does not name the lenders or the country.

*(Ours: $803 million drawn of about $1,425 million signed. Total debt rose $778.4 million in the
quarter, and short-term investments fell $625.0 million.)*

| Liquidity, $ million | 30 Sep 2026 | 30 Jun 2026 |
|---|---|---|
| Cash and cash equivalents | 1,552.9 | 1,162.0 |
| Short-term investments | 200.0 | 825.0 |
| Restricted cash, current and non-current | 583.4 | 606.4 |
| Available under the revolving credit facility | 669 | 664 |

*(Ours: cash and short-term investments were $1,752.9 million, against $1,987.0 million, and $2,247.7
million less than total debt, against $1,235.2 million.)* The revolver had no borrowings outstanding.
Interest expense was $46.3 million, against $41.1 million in the fourth quarter.

## 4. Inventory: up 29.5% in a quarter

Note 4 of the 10-Q (`0000820318-26-000023`), $ million:

| | 30 Sep 2026 | 30 Jun 2026 |
|---|---|---|
| Raw materials | 870.8 | 660.5 |
| Work in progress | 2,011.4 | 1,557.0 |
| Finished goods | 459.2 | 363.6 |
| Total | 3,341.4 | 2,581.0 |

*(Ours: up $760.3 million, or 29.5%, against revenue up 15.9% on the quarter; work in progress is
60.2% of the total.)* That total was the pre-print's check on line 5.

## 5. Commitments and customers: what the 10-Q did not restate

Lines 4 and 5 came from 10-K notes, and the 10-Q does not repeat them. It has no purchase-commitment
total to set against the $11.8 billion at 30 June, and no percentage for the two customers at 20% and
12% of fiscal 2026 revenue. Those are annual disclosures here, unless a later filing adds them.

It does repeat the NVIDIA language: "While no
material liability was recorded at quarter-end solely as a result of entering into the agreement, the
arrangement may result in material future cash requirements and could affect revenue concentration,
gross margin, and capital expenditures as volumes ramp." The six-month lock-up on the 7,788,161 shares
sold to NVIDIA on 2 March is in the equity note. *(Ours: six months from 2 March ran out in early
September.)*

The slides carry the demand side, and only the slides do: "New LTAs strengthen multiyear visibility,
including a PhotonLink™ agreement valued at ~$20B over five years; with revenue beginning to ramp in
early CY2028", and "LTAs typically extend through the end of the decade". *(Ours: about $4 billion a
year if it ran evenly; the slide gives no phasing.)* The slide names no counterparty. The word
PhotonLink does not appear in the 10-Q, and Note 3 says Coherent does not disaggregate revenue by
customer or contract. Near-term, the slides expect PhotonLink revenue above "$100M in the March 2027
quarter and $250M per quarter before CY27-end".

## 6. Indium phosphide: "output" became "output capacity"

August's slide (`0001193125-26-346860`): "On track to double internal InP output by year-end and more
than double again by 2027". November's (`0001193125-26-447200`): "Internal InP output capacity doubled
YoY one quarter early; on track to more than double again by CY27-end". The date arrived early, and
the noun changed from output to output capacity. The 10-Q has no indium phosphide sentence.

## 7. The second-quarter guide

From the release (`0001193125-26-447200`), company guidance:

| | Q1 FY27 guide | Q1 FY27 filed | Q2 FY27 guide |
|---|---|---|---|
| Revenue | $2.2–2.4 billion | $2,370.3 million | $2.55–2.75 billion |
| Gross margin, non-GAAP | 39.5–41.5% | 40.6% | 40–42% |
| Operating expenses, non-GAAP | $400–420 million | $412 million | $430–450 million |
| Tax rate, non-GAAP | 18–20% | 19% | 18–20% |
| EPS, non-GAAP | $1.85–2.05 | $2.09 | $2.28–2.48 |

*(Ours: the revenue range is 7.6% to 16.0% above the first quarter; the gross-margin band moved up 0.5
points at each end.)*

The release adds four longer lines, all company expectations:

- "our first $3 billion revenue quarter by the end of fiscal 2027"
- fiscal 2027 pro forma revenue growth "to exceed 60%, more than double our fiscal 2026 pro forma growth
  rate"
- "first $4 billion revenue quarter in fiscal 2028"
- a first quarter "with non-GAAP gross margin above 45% before the end of calendar 2028"

None of the four is in the 10-Q. Nor does either filing give a capex figure for the year, the number
the 4 November post asked for on line 4.

## What to hold the next filing to

1. Note 8: how much of the roughly $1,425 million of local facilities is drawn, against $803 million.
2. Operating cash against capex, against −$92.7 million and $775.5 million.
3. Inventory against $3,341.4 million, and capex in accounts payable against $527.7 million.
4. Revenue against $2.55–2.75 billion, and the segment line against $1,951.7 million, now on the moved
   perimeter.
5. Whether any filing, not a slide, puts the ~$20 billion agreement in a table or a note.

The proxy (`0001104659-26-114847`) sets the annual meeting for 18 November.

## Run it yourself

[/filings/COHR](https://evidinvest.com/filings/COHR) lists the 8-K and the 10-Q, and [/valuation/COHR](https://evidinvest.com/valuation/COHR) lets
you run your own valuation on filed numbers. Open the 10-Q and read Note 8 next to the cash-flow
statement; it takes five minutes. The pre-print lines are in our [4 November
post](https://evidinvest.com/blog/cohr-lite-q3-2026-twelve-filed-lines-before-the-prints-2026-11-04).

Then write down the lines you will hold Coherent to: $803 million drawn, $3,341.4 million of inventory,
$2.55–2.75 billion for the second quarter. Our [Thesis Monitor](https://evidinvest.com/thesis-monitor) reads each new filing
against what you wrote and tells you which of them moved. If you work inside an agent, the same filings
are on the [EvidInvest MCP server](https://evidinvest.com/developers). It is free to start, credit packs from $10, and there
is no subscription.

The release has the revenue. Note 8 has the lenders' side of the quarter.

*Sources. Coherent Corp. Form 8-K of 4 November 2026, Exhibit 99.1 (Q1 FY2027 results and Q2 FY2027
outlook) and Exhibit 99.2 (slides): accession `0001193125-26-447200`
([sec.gov](https://www.sec.gov/Archives/edgar/data/820318/000119312526447200/d176836dex991.htm)). Form
10-Q for the quarter ended 30 September 2026, filed 4 November 2026: `0000820318-26-000023`
([sec.gov](https://www.sec.gov/Archives/edgar/data/820318/000082031826000023/iivi-20260930.htm)). Form
10-K for the fiscal year ended 30 June 2026: `0000820318-26-000020`
([sec.gov](https://www.sec.gov/Archives/edgar/data/820318/000082031826000020/iivi-20260630.htm)). Form
8-K of 12 August 2026, Exhibits 99.1 and 99.2: `0001193125-26-346860`
([sec.gov](https://www.sec.gov/Archives/edgar/data/820318/000119312526346860/d128030dex991.htm)). Proxy
statement (DEF 14A) of 9 October 2026: `0001104659-26-114847`. Pre-print values are those fact-checked
in our post of 4 November. EDGAR was checked at 04:30 UTC on 5 November 2026. No analyst estimate,
consensus figure, share price or call remark appears on this page; our arithmetic is labelled as ours.
Research, not investment advice.*

---

Cite the canonical URL above (https://evidinvest.com/blog/cohr-q1-fy27-read-back-2026-11-05), not this Markdown file. Research, not investment advice.

## Sitemap

All posts in Markdown: https://evidinvest.com/blog/index.md · feeds: https://evidinvest.com/blog/rss.xml and https://evidinvest.com/blog/feed.json ·
the [index for language models](https://evidinvest.com/llms.txt) · the full [sitemap](https://evidinvest.com/sitemap.md).