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SYM vs. COHR: Which Technology Services Stock Is Better-Placed Now?
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Key Takeaways
COHR posted 17.3% YoY revenue growth and a huge sequential rise in operating income in Q1 FY26.
Strong demand for 800G and 1.6T products fueled COHR's growth and supports bullish 2026 expectations.
SYM faces headwinds from customer concentration and lags COHR in earnings consistency and valuation.
Symbotic (SYM - Free Report) and Coherent Corp. (COHR - Free Report) are prominent players in the Zacks Technology Services industry. Headquartered in Wilmington, MA, Symbotic specializes in developing, commercializing and deploying advanced technology solutions designed to optimize supply-chain operations. Through its focus on AI-driven robotics, the company has established itself as a leading innovator in supply-chain automation.
In contrast, Coherent enables innovation across multiple end markets by delivering cutting-edge technologies that span materials, components and systems. COHR serves a broad range of applications across the industrial, communications, electronics and instrumentation sectors, supported by its global research and development, manufacturing, sales, service and distribution capabilities.
Against this backdrop, a closer comparison helps determine which technology services company currently has the upper hand — and which one offers stronger growth potential.
The Case for Coherent
Coherent delivered solid top-line performance in the first quarter of fiscal 2026 (ended Sept. 30, 2025), posting a 17.3% year-over-year increase and 3.4% sequential growth in revenues, driven by robust demand from AI-focused data centers and communications markets. Operating income surged sharply — up 244.5% year over year and 4,147.5% sequentially — reflecting disciplined cost controls and effective expense management.
The significant growth in operating income relative to revenue underscores COHR’s scalable operating structure and efficiency. This operating leverage is further evident in a 40-basis-point sequential reduction in research and development expenses as a percentage of revenues.
During the quarter, the company saw widespread adoption of 800G products along with accelerating demand for 1.6T transceivers, signaling strong market traction. Management anticipates this momentum to continue into 2026. Additionally, COHR achieved high production yields for its 6-inch indium phosphide (InP) wafers — significantly outperforming the 3-inch format — which supported the commencement of production at its Järfälla, Sweden facility and expanded manufacturing capacity. The company is well-positioned to meet rising optical component demand through a balanced mix of in-house InP production and third-party sourcing.
COHR also maintains a solid balance sheet, with cash and cash equivalents totaling $875 million as of September 2025 and modest current debt of $48 million, reinforcing its strong liquidity profile. Its current ratio of 2.33 in the first quarter of fiscal 2026 — well above the industry average of 1.58 — further highlights the company’s ability to comfortably meet short-term obligations.
During Coherent’s first-quarter fiscal 2026 earnings call, management highlighted strong demand for the company’s products, driven largely by direct customer bookings. The CEO noted that 800G products have seen broad adoption, while 1.6T transceivers are gaining rapid traction. Given this momentum, management expects demand for these offerings to accelerate significantly in 2026.
Additionally, the company’s Optical Circuit Switch technology represents a key enabler for AI data centers. Management estimates that this product alone could unlock more than $2 billion in long-term addressable market potential.
Driven by the strong product portfolio, the company outpaced the Zacks Consensus Estimate for earnings in each of the past four quarters, with the average beat being 15.2%.
Symbotic’s substantial backlog provides strong visibility into its future revenue stream. At the end of the fourth quarter of fiscal 2025, the company reported a backlog of $22.5 billion, which supported its year-over-year revenue growth during the quarter. This robust backlog position underscores sustained demand for Symbotic’s solutions.
The company is also well-positioned for margin expansion, supported by the steady cadence of system deployments. In addition, strong free cash flow generation and a favorable current ratio reflect a healthy liquidity profile. However, Symbotic’s heavy reliance on Walmart (WMT - Free Report) remains a key concern, as the retailer represents a significant portion of its total revenues. In January 2025, Symbotic completed the acquisition of Walmart’s Advanced Systems and Robotics business, further deepening this customer relationship.
While no immediate risk is anticipated, investors should remain mindful of the company’s customer concentration exposure. Moreover, Symbotic does not pay dividends and has no plans to initiate one, which may limit the stock’s appeal to income-focused investors. The company also faces challenges related to the international expansion, particularly in adapting its technology to varying operational environments and customer needs. Additionally, ongoing tariff-related economic uncertainty could adversely impact Symbotic’s future operations and financial performance.
SYM has a mixed earnings surprise history, having beaten estimates twice in the past four quarters. Its earnings have lagged the Zacks Consensus Estimate in the two other quarters. The average beat is 69.3%.
Over the past six months, SYM’s shares have gained in double digits. However, the performance lags that of Coherent, with its shares skyrocketing in excess of 100% in the same timeframe.
6-Month Price Comparison
Image Source: Zacks Investment Research
Coherent also looks more attractive than SYM from a valuation standpoint. COHR currently trades at a higher forward 12-month price-to-sales (P/S) multiple of 4.18 compared with SYM’s 13.93. SYM has a Value Score of F. Meanwhile, COHR has a Value Score of D.
Image Source: Zacks Investment Research
Verdict
Coherent’s strong financial performance in the first quarter of fiscal 2026 underscores robust demand from AI-driven data center and communications markets. The company’s core operations are highly efficient, providing a solid foundation for scalable growth. Strong product demand during the quarter, coupled with management’s expectations for further acceleration, reinforces its favorable growth outlook. Additionally, Coherent’s solid balance sheet strength serves as a positive signal for investors. New partnerships and the anticipated surge in data transmission are likely to keep COHR in good shape.
In contrast, while Symbotic’s prospects for margin expansion remain encouraging — supported by a growing pace of system deployments — several headwinds warrant caution. Elevated valuation levels, an unfavorable earnings surprise track record and customer concentration risks temper the outlook for SYM.
Given its better prospects, COHR emerges as the clear winner over SYM at present.
While COHR carries a Zacks Rank #3 (Hold), SYM has a Zacks Rank #4 (Sell) at present.
Image: Bigstock
SYM vs. COHR: Which Technology Services Stock Is Better-Placed Now?
Key Takeaways
Symbotic (SYM - Free Report) and Coherent Corp. (COHR - Free Report) are prominent players in the Zacks Technology Services industry. Headquartered in Wilmington, MA, Symbotic specializes in developing, commercializing and deploying advanced technology solutions designed to optimize supply-chain operations. Through its focus on AI-driven robotics, the company has established itself as a leading innovator in supply-chain automation.
In contrast, Coherent enables innovation across multiple end markets by delivering cutting-edge technologies that span materials, components and systems. COHR serves a broad range of applications across the industrial, communications, electronics and instrumentation sectors, supported by its global research and development, manufacturing, sales, service and distribution capabilities.
Against this backdrop, a closer comparison helps determine which technology services company currently has the upper hand — and which one offers stronger growth potential.
The Case for Coherent
Coherent delivered solid top-line performance in the first quarter of fiscal 2026 (ended Sept. 30, 2025), posting a 17.3% year-over-year increase and 3.4% sequential growth in revenues, driven by robust demand from AI-focused data centers and communications markets. Operating income surged sharply — up 244.5% year over year and 4,147.5% sequentially — reflecting disciplined cost controls and effective expense management.
The significant growth in operating income relative to revenue underscores COHR’s scalable operating structure and efficiency. This operating leverage is further evident in a 40-basis-point sequential reduction in research and development expenses as a percentage of revenues.
During the quarter, the company saw widespread adoption of 800G products along with accelerating demand for 1.6T transceivers, signaling strong market traction. Management anticipates this momentum to continue into 2026. Additionally, COHR achieved high production yields for its 6-inch indium phosphide (InP) wafers — significantly outperforming the 3-inch format — which supported the commencement of production at its Järfälla, Sweden facility and expanded manufacturing capacity. The company is well-positioned to meet rising optical component demand through a balanced mix of in-house InP production and third-party sourcing.
COHR also maintains a solid balance sheet, with cash and cash equivalents totaling $875 million as of September 2025 and modest current debt of $48 million, reinforcing its strong liquidity profile. Its current ratio of 2.33 in the first quarter of fiscal 2026 — well above the industry average of 1.58 — further highlights the company’s ability to comfortably meet short-term obligations.
During Coherent’s first-quarter fiscal 2026 earnings call, management highlighted strong demand for the company’s products, driven largely by direct customer bookings. The CEO noted that 800G products have seen broad adoption, while 1.6T transceivers are gaining rapid traction. Given this momentum, management expects demand for these offerings to accelerate significantly in 2026.
Additionally, the company’s Optical Circuit Switch technology represents a key enabler for AI data centers. Management estimates that this product alone could unlock more than $2 billion in long-term addressable market potential.
Driven by the strong product portfolio, the company outpaced the Zacks Consensus Estimate for earnings in each of the past four quarters, with the average beat being 15.2%.
Coherent Corp. Price and EPS Surprise
Coherent Corp. price-eps-surprise | Coherent Corp. Quote
The Case for SYM
Symbotic’s substantial backlog provides strong visibility into its future revenue stream. At the end of the fourth quarter of fiscal 2025, the company reported a backlog of $22.5 billion, which supported its year-over-year revenue growth during the quarter. This robust backlog position underscores sustained demand for Symbotic’s solutions.
The company is also well-positioned for margin expansion, supported by the steady cadence of system deployments. In addition, strong free cash flow generation and a favorable current ratio reflect a healthy liquidity profile. However, Symbotic’s heavy reliance on Walmart (WMT - Free Report) remains a key concern, as the retailer represents a significant portion of its total revenues. In January 2025, Symbotic completed the acquisition of Walmart’s Advanced Systems and Robotics business, further deepening this customer relationship.
While no immediate risk is anticipated, investors should remain mindful of the company’s customer concentration exposure. Moreover, Symbotic does not pay dividends and has no plans to initiate one, which may limit the stock’s appeal to income-focused investors. The company also faces challenges related to the international expansion, particularly in adapting its technology to varying operational environments and customer needs. Additionally, ongoing tariff-related economic uncertainty could adversely impact Symbotic’s future operations and financial performance.
SYM has a mixed earnings surprise history, having beaten estimates twice in the past four quarters. Its earnings have lagged the Zacks Consensus Estimate in the two other quarters. The average beat is 69.3%.
Symbotic Price and EPS Surprise
Symbotic Inc. price-eps-surprise | Symbotic Inc. Quote
COHR’s Better Price Performance
Over the past six months, SYM’s shares have gained in double digits. However, the performance lags that of Coherent, with its shares skyrocketing in excess of 100% in the same timeframe.
6-Month Price Comparison
Coherent also looks more attractive than SYM from a valuation standpoint. COHR currently trades at a higher forward 12-month price-to-sales (P/S) multiple of 4.18 compared with SYM’s 13.93. SYM has a Value Score of F. Meanwhile, COHR has a Value Score of D.
Verdict
Coherent’s strong financial performance in the first quarter of fiscal 2026 underscores robust demand from AI-driven data center and communications markets. The company’s core operations are highly efficient, providing a solid foundation for scalable growth. Strong product demand during the quarter, coupled with management’s expectations for further acceleration, reinforces its favorable growth outlook. Additionally, Coherent’s solid balance sheet strength serves as a positive signal for investors. New partnerships and the anticipated surge in data transmission are likely to keep COHR in good shape.
In contrast, while Symbotic’s prospects for margin expansion remain encouraging — supported by a growing pace of system deployments — several headwinds warrant caution. Elevated valuation levels, an unfavorable earnings surprise track record and customer concentration risks temper the outlook for SYM.
Given its better prospects, COHR emerges as the clear winner over SYM at present.
While COHR carries a Zacks Rank #3 (Hold), SYM has a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.