Coherent has strong demand, with fiscal 2027 production capacity essentially sold out and orders reaching into 2028. But its 40.2% margin is below its goal of more than 42%, and it spent $556 million last quarter; the preview does not show whether expansion will lift profits.
Strong demand is clear: fiscal 2027 production capacity is essentially sold out, with orders reaching into 2028. But Coherent says meeting that demand profitably is the challenge. It kept 40.2 cents from each sales dollar after direct production costs, below its longer-term goal of more than 42 cents, and spent $556 million last quarter. This preview does not report results showing whether expansion will lift profits.
Apple has a multiyear agreement for Coherent lasers used in Face ID, but this preview reports no new change to Apple's sales or products. It does not change Apple's outlook.
Nvidia invested $2 billion in Coherent and committed to buying billions of dollars of its products. The story reports no new change to Nvidia's sales, costs, or products, so it does not change its outlook.
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