Summary
Coherent Corp. reported a robust increase in revenue for the three and six months ended December 31, 2025, driven primarily by strong demand in its Datacenter & Communications segment, significantly boosted by AI infrastructure investments and sustained growth in telecom solutions. This growth, coupled with improved gross margins due to cost reductions and efficiency gains, led to a substantial rise in net earnings and diluted earnings per share compared to the prior year. While the Industrial segment experienced a revenue decline, largely due to the divestiture of its aerospace and defense business, the overall financial performance remains strong. The company has also successfully refinanced its credit facilities and is managing its debt effectively. Coherent Corp. appears to be well-positioned to fund its operations and growth objectives, indicating positive momentum for the company.
Financial Highlights
47 data points| Revenue | $1.69B |
| Cost of Revenue | $1.06B |
| Gross Profit | $622.82M |
| R&D Expenses | $165.71M |
| SG&A Expenses | $258.49M |
| Operating Expenses | $1.52B |
| Net Income | $146.72M |
| EPS (Basic) | $0.87 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 167.51M |
| Shares Outstanding (Diluted) | 192.76M |
Key Highlights
- 1Revenue increased by 17% to $1.686 billion for the three months ended December 31, 2025, and by 17% to $3.267 billion for the six months ended December 31, 2025, driven by the Datacenter & Communications segment.
- 2Net earnings attributable to Coherent Corp. increased significantly to $147 million for the three months ended December 31, 2025, and $373 million for the six months ended December 31, 2025.
- 3Diluted earnings per share rose to $0.76 for the three months and $1.95 for the six months ended December 31, 2025, compared to $0.44 and $0.41, respectively, in the prior year.
- 4Gross margin improved to 37% for both the three and six-month periods, up from 36% and 35% in the prior year, respectively, attributed to cost efficiencies and pricing optimization.
- 5The company completed the sale of its aerospace and defense business in September 2025, resulting in a gain of $115 million recognized in the six-month period.
- 6Coherent Corp. refinanced and expanded its revolving credit facility and amended its term loan facilities during the period, enhancing its liquidity and financial flexibility.
- 7The Datacenter & Communications segment saw a 34% revenue increase for the quarter and 30% for the six months, fueled by AI datacenter demand and telecom applications.