Core Insights - Coherent Corp. (COHR) achieved a record revenue of $1.7 billion in Q2 FY26, exceeding the Zacks Consensus Estimate by 3% and reflecting a 17.5% year-over-year growth [1][9] - The company reported an EPS of $1.29, marking a 35.8% increase year-over-year and surpassing consensus estimates by 5.7% [2][9] Revenue Growth - The datacenter & communications segment saw a significant 33.5% year-over-year revenue increase, contributing 72% to the total revenue, up from 63% in the previous year [3][9] - The industrial business also showed signs of recovery, with a 4% sequential revenue increase, although it remained flat year-over-year on a pro forma basis [6] Margin and Financial Health - Coherent's operating income rose by 8.8% sequentially and 26.8% year-over-year, leading to a margin expansion of 40 basis points from the previous quarter and 147 basis points from the same quarter last year [7][9] - The company maintained a strong cash position of $863.7 million, up from $852.8 million in the previous quarter, with long-term debt remaining stable at $3.2 billion and a reduced debt leverage ratio of 1.7X compared to 2.3X a year ago [8][9] Competitive Position - Coherent's stock has increased by 110% over the past year, significantly outperforming the industry average growth of 3.8% [9] - The company is well-positioned in the market with a strong product portfolio and vertical integration, focusing on high-speed data transmission technologies [14][15] Investment Recommendation - Given the impressive fiscal discipline, deleveraged balance sheet, and robust fundamentals, Coherent is recommended as a buy for investors [15][16]