Coherent Set to Report Q1 Earnings: What's in the Offing?

Coherent Corp. COHR will release first-quarter fiscal 2026 results on Nov. 5, after market close.

COHR has an impressive earnings surprise history. In the four trailing quarters, it surpassed the Zacks Consensus Estimate, with an average surprise of 16.6%.

Coherent’s Q1 Expectations

The Zacks Consensus Estimate for the top line is set at $1.5 billion, suggesting a 14% increase from the year-ago quarter’s actual.

The consensus mark for the Networking segment is set at $972.2 million, indicating 19.2% growth from the year-ago quarter’s reported number. The primary reason behind this segment’s growth is likely to have been the investment made in AI and cloud computing infrastructure. Surge in demand for higher-speed products, mainly the 1.6T datacom transceiver and 800-gigabit transceiver, is anticipated to have fueled this segment.

For the Materials segment, the Zacks Consensus Estimate is pinned at $232.1 million, implying a decline of 4.7% from the year-ago quarter’s actual. The consensus estimate for the Lasers segment is kept at $339 million, suggesting a 9.7% year-over-year dip.

The consensus estimate for earnings per share is $1.04, hinting at a year-over-year 40.5% rise. Strong margin expansion facilitated by robust growth in the Networking segment’s revenues is likely to have benefited the bottom line.

What Our Model Says About COHR

Our proven model does not conclusively predict an earnings beat for Coherent Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

COHR has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

AppLovin APP: The Zacks Consensus Estimate for the company’s third-quarter 2025 revenues is pegged at $1.3 billion, indicating 11.9% year-over-year growth. For earnings, the consensus estimate is pegged at $2.36 per share, implying an 88.8% surge from the year-ago quarter’s actual. The company beat the consensus estimate in the trailing four quarters, with an average surprise of 22.4%.

APP has an Earnings ESP of +1.30% and a Zacks Rank of 2. The company is scheduled to declare its third-quarter 2025 results on Nov. 5.

Dave Inc. DAVE: The Zacks Consensus Estimate for the company’s third-quarter 2025 revenues is pegged at $131.1 million, indicating year-over-year growth of 41.8%. For earnings, the consensus estimate is pegged at $2.29 per share, implying a 51.7% increase from the year-ago quarter’s actual. The company beat the consensus estimate in the trailing four quarters, with an average surprise of 105.4%.

DAVE has an Earnings ESP of +1.53% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to announce third-quarter 2025 results on Nov. 4.

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This article originally published on Zacks Investment Research (zacks.com).

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