Coherent FQ3: InP Capacity Doubling to Drive CY26 Inflection

Coherent’s earnings report reinforced a theme being echoed by many AI optical companies, which is that demand is outpacing the industry’s ability to keep up. The company delivered another quarter of accelerating growth with improved profitability, while also discussing demand visibility as “exceptional.” The company posted revenue of $1.81 billion, up 7% QoQ and 21% YoY, and up 27% YoY on a pro forma basis (excluding the divested businesses). GAAP gross margin reached 37.7% with adjusted gross margin was 39.6%. Adjusted EPS grew 55% YoY with guidance that implies further growth on the bottom line.

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