Coherent (COHR) FY2026 results: revenue $7.1 billion, up 22.5% on the year

Coherent is a vertically integrated manufacturer of lasers, transceivers and other optical and optoelectronic devices, modules and systems, along with engineered materials, sold into data centre, communications and industrial markets. Its technical base runs from growing and fabricating specialty materials through semiconductor and high power lasers, passive optics, transceivers and transport equipment, and many products carry custom software developed in-house. Headquarters are in Saxonburg, Pennsylvania, and the financial year ends on 30 June. Effective 1 July 2025 the company realigned its structure into two reportable segments, Datacenter and Communications, and Industrial, replacing the former Networking, Materials and Lasers segments, with prior periods restated.

Datacenter and communications

The segment sells transceivers, co-packaged optics, optical circuit switches and other systems, subsystems, modules and semiconductor devices, along with vertical-cavity surface-emitting lasers, edge-emitting lasers, pump lasers, optics and integrated circuits. Artificial intelligence and machine learning are pushing data centre build-out and with it demand for optical connectivity with more bandwidth, lower latency and better power efficiency. The company supplies optical transceivers for AI data centre and networking use with a protocol-agnostic portfolio covering Ethernet, InfiniBand, NVIDIA NVLink and other architectures, designing and making in-house both the transceivers and many of their critical components, including lasers, detectors, integrated circuits, passive optics, thermal solutions and photonic integrated circuits. Indium phosphide is the foundation technology for the next generation of AI optical interconnects, and six-inch indium phosphide capacity is being expanded in the United States and Europe alongside several six-inch gallium arsenide facilities. On the communications side the portfolio covers coherent transmission components and transceivers, transport products, optical amplifiers, passive optical components, optical line systems and a multi-rail platform, sold to component and module makers, networking equipment manufacturers, data centre operators, enterprises and telecom carriers.

Fiscal 2026 moves

During fiscal 2026 the company announced an expansion of its Sherman, Texas plant, signed a multi-year supply agreement with NVIDIA for advanced lasers and optical networking products for AI infrastructure, and received a preliminary memorandum of terms under the CHIPS and Science Act to support the Sherman expansion.

Industrial

The segment sells excimer, solid-state and carbon dioxide lasers and laser systems, high-power lasers for materials processing, and engineered materials, laser optics, thermoelectric components and advanced ceramic and metal-matrix composites. In precision manufacturing the products reach medical device manufacturing, machine tools, consumer goods and industrial electronics, covering applications from electric vehicle battery welding and additive manufacturing to high-temperature superconducting wire. For semiconductor capital equipment, metal-matrix composites and reaction-bonded ceramics meet demands for tight tolerance, thermal stability and fast wafer transfer, while solid-state and excimer lasers handle inspection, carbon dioxide lasers handle wafer annealing, and other lasers serve advanced packaging tasks such as cutting, drilling, optical debonding and marking. In display capital equipment, excimer laser annealing systems serve low-temperature polysilicon OLED production and ultraviolet lasers serve cutting and next-generation microLED work. In life sciences the company integrates from crystals and materials through components and subassemblies for flow cytometry, genome sequencing and polymerase chain reaction instruments, and supplies semiconductor laser bars and stacks for medical treatments.

Operations and supply

Principal United States production and research sites sit in California, Connecticut, Delaware, New Jersey, Pennsylvania and Texas, with non-United States sites in China, Finland, Germany, Malaysia, the Philippines, Singapore, South Korea, Sweden, Switzerland, the United Kingdom and Vietnam, supported by contract manufacturers and strategic suppliers and by sales and marketing subsidiaries in eight further countries. Raw materials include indium phosphide substrates, integrated circuits, digital processors, mechanical housings and optical components, generally available from several sources, though the Industrial segment buys some exotic materials, crystals and optics from sole-source or limited-source suppliers, and rare-earth materials are used in some processes.

Selling and people

Products go out through a direct sales force and through representatives and distributors worldwide, with sales and strategic marketing centralised, supported by a technical sales team that helps customers design, test and qualify the parts into their own systems. Some customers are in aerospace and defence and in turn contract with government bodies. Two customers each contributed more than 10% of revenue in fiscal 2026. At 30 June 2026 the company employed approximately 51,000 people worldwide.

From Coherent's annual report on Form 10-K for the year ended 30 June 2026. The filing

Written from the 10-K filed 14 August 2026: read the full 10-K.