COHR Q4 2026 - Preliminary Earnings Alert
Verdict
- Revenue beat: $2.05bn against $1.98bn consensus, +3.1%, up 34% year over year and 42% on the company's pro forma basis.
- EPS beat: non-GAAP $1.74 against $1.62 consensus, +7.4%, up $0.74 from $1.00 a year ago.
- Q1 FY2027 guided well above the quarter just delivered: revenue $2.2–2.4bn, non-GAAP gross margin 39.5–41.5%, non-GAAP operating expenses $400–420m and non-GAAP EPS $1.85–2.05.
- The one thing that matters: this is a genuine margin story, not a mix accident. Non-GAAP gross margin rose 215bp to 40.2% while revenue grew 34%, and non-GAAP operating margin expanded 381bp to 21.8% — operating income grew 62% on 34% revenue growth. The guided gross margin range brackets the quarter just delivered rather than extending it, which is the first hint that the expansion may be flattening.
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue (total revenue) | $2,046m | $1,985m | Beat +$61m | +3.1% |
| EPS (non-GAAP diluted) | $1.74 | $1.62 | Beat +$0.12 | +7.4% |
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Revenue | $2,046m | $1,529m | +33.8% |
| GAAP gross margin | 38.5% | 35.7% | +277bp |
| Non-GAAP gross margin | 40.2% | 38.1% | +215bp |
| Non-GAAP operating income | $446m | $275m | +62.1% |
| Non-GAAP operating margin | 21.8% | 18.0% | +381bp |
| FY2026 revenue | $7,118m | $5,810m | +22.5% |
Full-year non-GAAP EPS was $5.61 against $3.53, growth of more than twice the rate of revenue.
Guidance changes
| Metric | New guidance | Prior guidance | Change |
|---|---|---|---|
| Q1 FY2027 revenue | $2.2bn – $2.4bn | Not previously given | New |
| Q1 FY2027 non-GAAP gross margin | 39.5% – 41.5% | Not previously given | New |
| Q1 FY2027 non-GAAP operating expenses | $400m – $420m | Not previously given | New |
| Q1 FY2027 non-GAAP EPS | $1.85 – $2.05 | Not previously given | New |
| Q1 FY2027 non-GAAP tax rate | 18% – 20% | Not previously given | New |
Quality of earnings
- GAAP flatters the year, not the quarter. Q4 GAAP EPS of $1.19 sits $0.55 below non-GAAP after a $44.3m held-for-sale impairment and $6.1m of restructuring, partly offset by $65.6m of other income; for the full year, GAAP earnings before tax of $847.7m includes a $124.1m gain on sale of business and $140.1m of other income.
- A third of the EPS growth was given back to the share count. Non-GAAP net earnings rose 82.7% to $351m while non-GAAP EPS rose 74% to $1.74, because diluted shares went to 202.2m from 155.5m; the full-year gap is wider still, 58.3% earnings growth against 195.4m shares from 154.8m.
- The prior-year comparison is soft. Q4 FY2025 GAAP operating margin was 0.4% because it carried $85.0m of held-for-sale impairment and $53.9m of restructuring, so the 1,202bp GAAP margin expansion overstates the underlying improvement that the 381bp non-GAAP figure captures.
Gotchas & watch items
- Q1 FY2027 non-GAAP gross margin of 39.5–41.5% straddles the 40.2% just reported, so after three consecutive quarters of expansion (38.1%, 39.6%, 40.2%) the company is not guiding the trend to continue.
- Non-GAAP operating expenses are guided to $400–420m against $377m in Q4, growth of 6% to 11% sequentially, on revenue guided up 8% to 17%.
- The $200m width of the Q1 revenue range is 9% of its midpoint, unusually wide for a one-quarter guide from a company citing "exceptional customer demand".
- Reported growth of 33.8% and pro forma growth of 42% differ by eight points, and the release does not state what the pro forma basis excludes.
Event: https://web.quartr.com/companies/3554/events/661756/overview Retrieved: 2026-08-12T20:40:00Z Comparison mode: maximal · Scorecard contract: v1 The call was scheduled for 20:30Z and had not concluded when this was written.