Coherent Earnings Call Transcripts
Fiscal Year 2026
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Q3 saw record revenue, margin expansion, and robust demand in AI data center and communications, with strong growth expected to continue. Capacity ramp, especially in 6-inch indium phosphide, is ahead of schedule, and multiple LTAs and a $2B NVIDIA partnership provide long-term visibility.
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A major inflection point is underway, driven by new growth engines in optics, CPO/NPO, OCS, Multi-Rail, and advanced thermal solutions, expanding TAM by $20B+. Strategic partnerships, manufacturing scale, and unique materials expertise position the business for accelerated growth and margin tailwinds.
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A major partnership with NVIDIA brings a $2B investment and multi-year supply agreement, fueling capacity expansion and innovation in photonics for data centers. Gross margin has improved by nearly 500 basis points, with strong growth in communications and industrial segments.
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Record Q2 revenue and EPS growth driven by strong AI data center and communications demand, with bookings visibility into 2027 and rapid expansion of six-inch indium phosphide capacity. Portfolio optimization and capacity investments are expected to drive further margin and revenue growth.
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Record Q1 revenue and EPS growth driven by strong AI data center and communications demand, with gross margin and operating leverage improving. Portfolio optimization and capacity expansion are supporting further growth, while debt reduction and refinancing have strengthened the balance sheet.
Fiscal Year 2025
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Record annual revenue and EPS growth driven by data center and communications strength, with gross margin expansion and significant debt reduction. Portfolio streamlined by divesting aerospace and defense, while new Apple partnership and advanced manufacturing investments position for continued growth.
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Photonics is central to future growth, with focused investment in data center, communications, and industrial markets. Financial targets include 10–15% organic revenue CAGR, >42% gross margin, and >24% operating margin, supported by portfolio optimization and increased software investment.
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Record Q3 revenue and margin expansion were driven by robust AI data center and telecom demand, with strong growth in networking and continued portfolio optimization. Guidance for Q4 anticipates stable revenue and margin, with ongoing focus on cost and pricing strategies.
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Record Q2 revenue and profitability driven by strong AI datacom and telecom growth, with gross margin and EPS showing significant improvement year-over-year. Guidance for Q3 remains strong, with continued focus on margin expansion, operational efficiency, and strategic investments.
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Q1 revenue grew 28% year over year to $1.35B, driven by AI datacom demand, with gross margin up to 37.7% and EPS at $0.74. Networking led segment growth, debt was reduced by $118M, and guidance for Q2 projects continued strength.
Fiscal Year 2024
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Q4 saw strong revenue and margin growth, led by datacom transceivers for AI data centers, while telecom and industrial markets remain soft. Strategic portfolio review and operational improvements are underway, with a focus on gross margin expansion, pricing, and deleveraging.