Coherent Posts Record Q4 Revenue
Coherent (NYSE:COHR) reported fiscal fourth quarter ended June 30, 2025, earnings on August 13, 2025, reporting record revenue of $1.53 billion in the fiscal fourth quarter, up 16% year-over-year, and full-year fiscal 2025 revenue of $5.81 billion, up 23% year-over-year, with non-GAAP EPS for fiscal 2025 increasing 191% to $3.53. Non-GAAP gross margin expanded by 358 basis points in fiscal 2025 to reach 37.9%, driven by strong growth in AI data center and communications segments, key production milestones, and a major portfolio optimization through the announced $400 million aerospace and defense divestiture. The following analysis covers the company’s historic capacity scaling, transformational customer agreements, and renewed focus on core photonics markets.
Coherent began production of the industry’s first six-inch indium phosphide wafer line at its Sherman, Texas plant in August 2025, supporting photonic component scaling for high-speed data center and optical networking products. Tripling indium phosphide capacity year over year has supported increased internal production of EML (electro-absorption modulated laser) and CW (continuous wave) lasers, which accounted for the majority of datacom revenue and are critical for emerging transceiver formats such as 1.6T.
This large-scale, vertically integrated manufacturing capability strengthens Coherent’s cost leadership and fortifies the company’s defense against geopolitical or tariff risks.
Source Fool.com
