Strong operational results and robust AI-driven demand narrative reinforce the bull case. Monitor the November 18 annual meeting for any last-minute activist or shareholder proposals, though none are currently on the ballot. The FY2027 special PSU awards with share price milestones (disclosed in August 2026 8-K) signal management's confidence in continued outperformance.
Price Chart
Executive Summary
Coherent's 2026 definitive proxy statement discloses record financial results (revenue of $7.12B, +22.5% YoY; GAAP EPS of $4.12, up from -$0.52) and a strong pay-for-performance compensation program. CEO James Anderson received total compensation of $28.3M, including a $3.46M annual cash bonus at 190% of target, reflecting the company's exceptional performance. The say-on-pay vote received ~96% support last year, and the board recommends approval again. All director nominees are incumbents with no contested elections, and no shareholder proposals are on the ballot.
Key Facts
- Record FY2026 revenue of $7.12 billion, up 22.5% year-over-year
- GAAP EPS improved by $4.64 to $4.12; non-GAAP EPS improved $2.08 to $5.61
- GAAP gross margin expanded 233 bps to 37.5%; non-GAAP gross margin of 39.4%
- Datacenter & Communications revenue grew 40% to $5.27 billion
- CEO James Anderson total compensation: $28,349,672 (salary $1,094,246, stock awards $23,779,354, cash bonus $3,456,024)
- Annual EIP cash incentive achieved 190% of target (above maximum)
- FY2024-2026 PSUs: rTSR metric earned at 200% (TSR of 766.39%, 97th percentile); Cash Flow from Operations metric earned at 0%
- Last year's say-on-pay approval: ~96% of votes cast
- Board recommends FOR all proposals: election of 4 Class III directors, say-on-pay, and auditor ratification of Ernst & Young
- No related party transactions in FY2026; no shareholder proposals on the ballot
Financial Impact
Record revenue of $7.12B (+22.5% YoY; GAAP EPS $4.12 vs -$0.52 prior year; non-GAAP EPS $5.61 vs $3.53 prior year; Adjusted EBITDA $1,744.7M vs target $1,550M
Risk Factors
- FY2024-2026 Cash Flow from Operations PSUs paid 0%, indicating cash generation lagged targets despite strong revenue growth
- CEO pay ratio of 1,381:1 may attract governance scrutiny from ESG-focused investors
- Restructuring charges of $63.4M and integration costs of $80.2M in FY2026 suggest ongoing operational friction
- Dependence on NVIDIA partnership and AI infrastructure demand concentration
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| DEF 14A Filing (Primary) | 0001104659-26-114847 |
| Document: 0001104659-26-114847-index-headers.html | 0001104659-26-114847 |
| Document: 0001104659-26-114847-index.html | 0001104659-26-114847 |
| Document: 0001104659-26-114847.txt | 0001104659-26-114847 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | Institutional Cluster | $207.82 | awaiting T+20 | awaiting T+20 | $235.79 (−13.46%) |
Oct 9, 2026 18d ago | DEFA14A | $312.62 | awaiting T+20 | awaiting T+20 | $235.79 (−24.58%) |
Oct 9, 2026 18d ago | DEF 14A | $312.62 | awaiting T+20 | awaiting T+20 | $235.79 (−24.58%) |
Sep 15, 2026 6w ago | Insider Cluster | $289.93 $263.32 | ▼ −9.18% | ▼ −11.24% | $235.79 (−18.67%) |
Sep 11, 2026 6w ago | Insider Cluster | $266.50 $288.02 | ▲ +8.07% | ▲ +5.56% | $235.79 (−11.52%) |
Sep 4, 2026 7w ago | Insider Cluster | $301.88 $338.36 | ▲ +12.08% | ▲ +10.12% | $235.79 (−21.89%) |
Sep 2, 2026 7w ago | Insider Cluster | $264.41 $337.04 | ▲ +27.47% | ▲ +28.66% | $235.79 (−10.82%) |
Sep 2, 2026 7w ago | Insider Cluster | $264.41 $337.04 | ▼ −27.47% | ▼ −28.66% | $235.79 (+10.82%) |
Aug 31, 2026 8w ago | 8-K | $277.83 $292.21 | ▲ +5.18% | ▲ +5.36% | $235.79 (−15.13%) |
Jul 14, 2026 15w ago | Institutional Cluster | $299.38 $355.64 | ▲ +18.79% | ▲ +16.45% | $235.79 (−21.24%) |
US Market Status
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