Coherent

COHR

Market cap $28.9B

PHILADELPHIA, Jan. 13, 2026 /PRNewswire/ -- Attalon, Inc., a provider of mission-critical optical and directed energy technologies, today announced its launch as an independent standalone company following its acquisition by Advent International. Formerly the Aerospace & Defense business of Coherent Corp. (NYSE: COHR), Attalon emerges with a sharpened focus on delivering high-performance systems required for next generation warfare, including directed energy, cutting edge space and airborne optics, and survivability solutions.

SAXONBURG, Pa., Jan. 12, 2026 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR), a global leader in photonics, today announced the launch of the WaveShaper 1000A Sharp, a new programmable optical filter delivering industry-leading fine (‘sharp') frequency resolution.

I am rating Coherent Corp. a Strong Buy rating, due to robust growth and three powerful structural tailwinds: AI data center demand, essential photonics infrastructure, and portfolio simplification. COHR delivered 17% y/y revenue growth to $1.58B, with data center & communications segment up 26%, driving 73% EPS growth and 200bps gross margin expansion. COHR's growth far outpaces peers—20.8% y/y revenue growth vs. 8% sector median—yet its FWD PEG ratio (1.04x) remains 38% below sector median, highlighting undervaluation.

COHR posts sharp margin expansion in Q1 FY26 as AI-driven demand, cost discipline and a divestiture fuel 17.3% revenue growth.

COHR outpaces SYM with surging AI-driven demand, strong earnings beats and a more attractive valuation profile.

Coherent Corp. is poised to capitalize on the AI data center shift to silicon photonics and optical connectivity solutions. Coherent projects mid-teens top-line CAGR, with DC business driving high-teens CAGR, and expects gross margins to continue expanding from the current 38%. Management is aggressively paying down debt, with obligations reduced to ~$3.5B, and EPS reaching a three-year high of $0.76.

COHR shares have surged 112% in six months, fueled by strong AI-driven demand, a solid balance sheet, and an upbeat revenue and EPS outlook.

Broadcom is proving to be a key beneficiary in the AI networking market, with around $20 billion of non-accelerator AI backlog. Coherent is also benefiting from the ongoing AI networking upgrade cycle.

Coherent's AI push is paying off. AI datacenter revenues rose 23% y/y, with rapid adoption of 800G and 1.6T transceivers driving demand.

COHR's surging AI-driven demand, sharp operating income growth and strong balance sheet set it apart in a faceoff with RR.