Key points
- Coherent (COHR) posted fiscal fourth-quarter non-GAAP EPS of $1.74 on August 12, 2026, up 74% from a year earlier, on revenue of $2.046 billion, up 34%. Both beat, its seventh straight quarterly beat.
- Coherent guided the current quarter to revenue of $2.2 billion to $2.4 billion and non-GAAP EPS of $1.85 to $2.05, above both the quarter it just reported and Wall Street.
- Lumentum (LITE) beat on August 11 with revenue of $1.006 billion, up 109%, and non-GAAP EPS of $3.23, and guided next quarter to $4.05 to $4.35 a share. Applied Optoelectronics (AAOI) beat on August 6 with record revenue of $191.9 million, up 86%.
- All three beat on the same driver, 800-gigabit and 1.6-terabit optical transceivers for AI data centers, and all three raised their next-quarter outlook.
- The reactions split. Lumentum rose about 13% the next session, Coherent fell about 4% after hours following a 44% run, and Applied Optoelectronics swung sharply before recovering. This is general market commentary, not investment advice.
Coherent (COHR) reported fiscal fourth-quarter results after the close on Wednesday, August 12, and beat again. Non-GAAP earnings were $1.74 a share, up 74% from a year earlier and above the $1.62 analysts expected. Revenue was $2.046 billion, up 34% and above the $1.98 billion consensus. It was a double beat, and Coherent's seventh in a row.
The report completed a sweep. Over one week, the three optical suppliers that make the wiring inside AI data centers all reported, and all three beat. Applied Optoelectronics (AAOI) reported first, on August 6. Lumentum (LITE) followed on August 11. Coherent came last. On the numbers, the group went undefeated.
| Company | Revenue | YoY | Non-GAAP EPS | vs. estimate |
|---|---|---|---|---|
| Coherent (COHR) | $2.046B | +34% | $1.74 | Est. $1.62 |
| Lumentum (LITE) | $1.006B | +109% | $3.23 | Est. about $3.00 |
| Applied Optoelectronics (AAOI) | $191.9M | +86% | $0.06 | Est. $0.01 |
The guidance ran higher than the quarter. Coherent guided the September quarter to revenue of $2.2 billion to $2.4 billion and non-GAAP earnings of $1.85 to $2.05 a share, both above the quarter it just posted and above the $1.74 analysts were carrying. Lumentum had guided the same way a day earlier, to fiscal first-quarter revenue of $1.225 billion to $1.275 billion and earnings of $4.05 to $4.35, above the $1.15 billion the Street had modeled. Applied Optoelectronics guided its September quarter about 42% above the one it just reported. Three reports, three raised outlooks.
The stock reactions split
The results were consistent. The trading was not.
Lumentum had the clearest reaction. The stock dipped about 4% in the first minutes after the release, then reversed and closed the next session up about 13% near $932. It is up more than 600% over the past year. The GAAP loss of $84.65 a share was a non-cash charge for retiring convertible debt and does not reflect the operating business.
Coherent went the other way. The stock had already gained about 8% during Wednesday's session, part of a 44% run over the prior two weeks, and after the beat it fell about 4% in after-hours trading before recovering. The beat and the raise were not enough to hold the gain.
Applied Optoelectronics traded the same way a week earlier. It rose to $142 after its beat, gave the move back to $115 within the same five minutes, then recovered to about $125. It trades near $138 today.
What we said last week
This site made the case before the prints. Covering Applied Optoelectronics' quarter on August 6, we wrote that the real signal would come from Lumentum and Coherent, and that both would likely confirm the same 800-gigabit demand Applied Optoelectronics had reported. They did. We also noted the pattern now in the tape: after a run this size, a strong quarter often gives holders a reason to sell. Coherent did exactly that.
The setup was the one described here the night Lumentum reported. The group had sold off into earnings, giving back part of runs of 25% to 44%, and the question was whether the results would justify the prices. The results did. The prices have not settled the matter.
The same demand underneath
The driver under all three is the same. Optical transceivers move data over fiber between the servers and switches inside an AI data center, and volumes are rising as the industry moves from 800-gigabit to 1.6-terabit parts. Lumentum's 109% revenue growth and Coherent's datacenter-led quarter are two readings on one buildout, parts that sit in the middle of the AI hardware stack. A separate factor hangs over the group: a draft US rule that would bar Chinese-made transceivers from American networks and move that spending toward these suppliers. It remains a draft.
The clearer test is the next full session rather than the after-hours tape. Coherent's call and Thursday's open will show whether the decline holds or reverses. Fabrinet (FN), which assembles much of this hardware, reports August 17 and is the next reading. For now the group has done what it needed to do. On earnings, the optics suppliers are undefeated, and the market is pricing them accordingly.
Sources
- Coherent fiscal fourth-quarter 2026 results, reported August 12, 2026: non-GAAP EPS of $1.74 on revenue of $2.046 billion, with fiscal first-quarter guidance
- Lumentum fiscal fourth-quarter 2026 results, August 11, 2026: revenue of $1.006 billion, non-GAAP EPS of $3.23, and fiscal first-quarter guidance
- Applied Optoelectronics second-quarter 2026 results, August 6, 2026: record revenue of $191.9 million, non-GAAP EPS of $0.06, and third-quarter guidance
- Price data and earnings-day reactions from Robinhood official closes and after-hours trading, through August 12, 2026
