Description

Coherent’s $556 Million Capacity Bet Unlocks the Next Phase of 800G and 1.6T!

Coherent, a global leader in photonic technology, reported a record fiscal year 2026 with pro forma revenue increasing 28% to $7.12 billion, driven primarily by growth in its Datacenter & Communications segment, which accounted for 79% of total revenue. The company demonstrated robust momentum in the fourth quarter, with pro forma revenue growing 14% sequentially and 42% year-over-year. Non-GAAP earnings per share (EPS) increased 59% for the full year, outpacing revenue growth due to gross margin expansion and improved operating leverage. Gross margin improvements stemmed from lower product input costs, higher manufacturing yields, pricing optimization, and particularly the ramp-up of the 6-inch indium phosphide production platform. Operationally, Coherent has been focused on expanding manufacturing capacity, especially within its indium phosphide laser production, which supports its 800 gig and 1.6 terabit transceivers. The company is ahead of schedule in doubling this production capacity and expects further expansion through calendar 2027.