Research Reports

Prepared Highlights

Full year fiscal 2025 revenue was a record $5.81 billion, up ~23% year-over-year (CEO, CFO).
Q4 fiscal 2025 revenue was a record $1.53 billion, up 2% sequentially and 16% year-over-year (CEO, CFO).
Data center and communications market revenue grew 51% in fiscal 2025; Q4 grew 5% sequentially and 39% year-over-year (CEO).
Data center revenue (full year) increased 61%; Q4 grew 3% sequentially and 38% year-over-year to a record (CEO).
Communications revenue increased 23% for fiscal 2025; Q4 grew 11% sequentially and 42% year-over-year (CEO).
Industrial-related end markets revenue decreased 2% for the year; Q4 decreased 2% sequentially and 8% year-over-year (CEO).
Non-GAAP gross margin Q4: 38.1%, down 43 bps sequentially, up 220 bps year-over-year (CFO). Full year: 37.9%, up 358 bps from 2024 (CFO).
Non-GAAP operating margin Q4: 18% vs. 18.6% prior quarter and 15.4% year ago (CFO). Full year: 17.8%, up 472 bps from 2024 (CFO).
Non-GAAP EPS Q4: $1.00 vs. $0.91 prior quarter and $0.51 year ago (CFO). Full year: $3.53 vs. $1.21 in 2024, up 191% (CFO).
Debt paydown: $51 million in Q4; $437 million in fiscal 2025; debt leverage ratio reduced to 2x from 2.5x (CFO).
Aerospace & Defense business sale announced for $400 million; expected to close this quarter; proceeds to pay down debt (CEO, CFO). Business contributed ~$50 million quarterly revenue with below-average gross margin (CFO).
New 6-inch indium phosphide production line in Sherman, Texas — world’s first — beginning production this month (CEO).
Multi-year agreement with Apple for new generation VCSEL products; revenue expected in second half of calendar 2026 (CEO).
Initial revenue shipments of 1.6T Transceivers and Optical Circuit Switch (OCS) in Q4 (CEO).

Official Guidance (Q1 Fiscal 2026)

Revenue: $1.46 billion to $1.6 billion (excludes ~$20 million in A&D revenue after close) (CFO)
Non-GAAP gross margin: 37.5% to 39.5% (CFO)
Non-GAAP operating expenses: $290 million to $310 million (CFO)
Non-GAAP tax rate: 18% to 22% (CFO)
Non-GAAP EPS: $0.93 to $1.13 (CFO)

Mgmt Quotes

“Our fiscal 2025 was an outstanding year for Coherent as full year revenue increased by approximately 23% year-over-year to a record $5.81 billion.” (CEO)
“We continue to see strong bookings and demand forecasts across our data center customers as they continue to invest in AI datacenter capacity expansion.” (CEO)
“We’ve tripled indium phosphide capacity year-over-year and expect to continue to expand capacity over the coming quarters to support the strong demand signals from our customers.” (CEO)
“We expect fiscal ’26 to be another growth year for the company and believe we are well positioned for continued long-term growth.” (CEO)
“We view this sale as a very positive outcome for shareholders as exiting this business will meaningfully streamline our portfolio, allow us to accelerate the paydown of our debt increase our profitability and focus our investments.” (CFO)

Prepared Metrics

Metric	Value	Speaker/Context
Full Year Revenue (FY2025)	$5.81 billion	Record, up ~23% YoY (CEO, CFO)
Q4 Revenue	$1.53 billion	Record, up 2% QoQ, 16% YoY (CEO, CFO)
Data Center Revenue (FY2025)	+61% YoY	Full year (CEO)
Communications Revenue (FY2025)	+23% YoY	Full year (CEO)
Industrial Revenue (FY2025)	-2% YoY	Full year (CEO)
Non-GAAP Gross Margin (Q4)	38.1%	Down 43 bps QoQ, up 220 bps YoY (CFO)
Non-GAAP Gross Margin (FY2025)	37.9%	Up 358 bps from 2024 (CFO)
Non-GAAP Operating Margin (Q4)	18%	vs. 18.6% prior Q, 15.4% year ago (CFO)
Non-GAAP EPS (Q4)	$1.00	vs. $0.91 prior Q, $0.51 year ago (CFO)
Non-GAAP EPS (FY2025)	$3.53	Up 191% YoY (CFO)
Debt Paydown (FY2025)	$437 million	Nearly 2x FY2024 (CFO)
Debt Leverage Ratio	2x	Down from 2.5x at end of 2024 (CFO)
A&D Business Sale Price	$400 million	Expected close this quarter (CEO, CFO)
A&D Business Quarterly Revenue	~$50 million	Average over past 4 quarters (CFO)

Q&A Batch (1-5 of 8)

Q1 — Samik Chatterjee

Topic: 数据中心增长展望及6英寸InP平台进展
Key points:
- 数据中心与通信业务Q4同比增速近40%，全年超50%，其中数据中心部分全年超60%
- 800G收发器预计本日历年及下日历年继续增长；1.6T收发器已开始出货，本季度收入贡献，预计未来几个季度持续增长
- 光学电路开关（OCS）在上一季度开始出货，预计持续增长；DCI板块（ZR/ZR+产品）需求强劲，通信业务环比两位数增长
- 6英寸InP生产线本月（8月）启动生产，为全球首条，预期带来产能提升和显著成本优势
Mgmt stance: 强力看涨（bullish），基于强劲需求信号、多个增长驱动因素及产能扩张计划

Q2 — Simon Matthew Leopold

Topic: 环比下降板块及OCS产品管线
Key points:
- 预计工业相关市场环比下降，其中包含约2000万美元因航天业务出售剔除的收入；剔除后工业预计持平至小幅下滑
- 对工业整体持谨慎态度，因宏观经济和关税不确定性，但长期仍视为增长机会（如半导体、显示设备）
- OCS管线非常健康，客户参与度高，公司正按客户订单加速扩产
Mgmt stance: 对工业短期谨慎（cautious），对OCS短期强烈看涨（bullish）

Q3 — George Charles Notter

Topic: Apple合作关系增量收入及资本投入
Key points:
- 合作扩展为新一代VCSEL用于iPad和iPhone，收入将在2026年下半年开始体现
- 这是一个多年期合作，VCSEL在Sherman工厂生产，有助于该工厂利用率提升
- 关于市场份额，管理层将在接近量产时提供更多细节
- 支持该业务需少量增量资本，公司会自行承担
Mgmt stance: 中性偏乐观（bullish），强调多周期合作和美国制造优势

Q4 — Unidentified Analyst (Ezra Weener)

Topic: OCS（液晶 vs 机械）技术优势及1.6T/800G供需与激光器来源
Key points:
- OCS采用数字液晶技术（非机械MEMS），可靠性更高，性能满足客户规格，获得多家客户强劲参与
- 800G预计继续增长至下一年，1.6T在上季度首次出货后开始叠加增长
- 激光器采用内外部混合模式：目前超过50%的收发器使用EML激光器，其中超过一半为内部供应
- 为支持800G和1.6T需求，正提升组装测试及内部InP激光器（6英寸）产能
Mgmt stance: 对OCS和高速收发器均看好（bullish），技术优势稳固

Q5 — Vivek Arya

Topic: 数据中心环比增速放缓与毛利率前景
Key points:
- 数据中心业务环比增速从9%（3月）降至5%（6月），9月隐含增速可能低于或持平，管理层归因于客户需求或供应产能的季度波动
- FY25全年数据中心增速超60%，且市占率提升；预计FY26将继续受益于800G、1.6T、OCS、DCI等增长
- 毛利率Q4受外汇不利影响，但成本削减和定价优化有效抵消；若剔除外汇，毛利率将超过指引上限
- 长期目标模型为毛利率>42%，管理层对此有信心，认为目前仍处早期阶段
Mgmt stance: 对数据中心增长坚定看涨（bullish），对毛利率长期

Q&A Batch (6-8 of 8)

Q6 — Meta A. Marshall

Topic: Industrial lasers caution & datacom lumpiness
Key points:
- Industrial laser customer base is geographically diversified (Europe, Asia, North America); no unexpected concentration.
- Caution due to high cost of capital, tariff uncertainty, and overall macro; near-term outlook cautious but long-term growth positive.
- In fiscal '25, industrial lasers grew year-over-year; recurring service revenue grew faster than product sales (gross margin tailwind), excluding silicon carbide headwind.
- Datacom sequential growth rate fluctuations viewed as normal; 800-gig ramp involves a transition from 400-gig to 800-gig, expected and not out of the ordinary.
Mgmt stance: Neutral on industrial lasers near-term due to macro caution; bullish on long-term industrial growth and datacom trajectory (transitions expected, no alarm).

Q7 — Papa Talla Sylla

Topic: DCI demand, 800-gig/400-gig demand split, and data rate transitions
Key points:
- DCI demand is very strong; communications segment (telecom + DCI) up ~11% sequentially; DCI grew even faster.
- Two routes to market: sell ZR/ZR+ transceivers (100-gig, 400-gig, 800-gig) and related systems; also sell components to other vendors; both paths showing strong demand.
- Demand driven more by multi-data center workloads and interconnects than inference; 800-gig expected to grow sequentially in next quarter.
- 400-gig and below demand still relatively strong near-term; market transitioning to 800-gig, with 1.6T revenue just starting; data rate transition outlook unchanged from Investor Day (May) including 3.2T.
Mgmt stance: Bullish on DCI growth and long-term data rate transition; sees strong signals and competitive product lineup.

Q8 — Christopher Adam Jackson Rolland

Topic: Transceiver market share, Chinese competition, pricing, capacity, and Vietnam facility/silicon carbide
Key points:
- Coherent gained market share in fiscal '25 per third-party data, especially in higher data rate transceivers; strategy based on technology roadmap (3 versions of 1.6T at OFC: VCSELs, EMLs, silicon photonics) and supply chain resiliency (U.S. manufacturing, vertical integration, internal indium phosphide/EMLs).
- Pricing pressure is as expected, no unusual trends; ramping capacity quickly (assembly/test + key ingredients); tripled indium phosphide capacity year-over-year; increased CW laser production sequentially and year-over-year.
- Vietnam facility inaugurated for materials-related businesses including silicon carbide; focused on geographic diversity, flexibility, capacity, cost advantages.
- Silicon carbide business: stopped pre-revenue investment in devices/modules; concentrated on wafers/epi; demand dropped significantly in fiscal '25 but has stabilized and started to pick up; not expected to be a headwind in fiscal '26, expecting growth.
Mgmt stance: Bullish on transceiver market share gains and supply chain resilience; neutral-to-bullish on silicon carbide (stabilized, expected growth in fiscal '26, no further headwind).