Description

Coherent: What Makes Its ZR/ZR+ Transceiver Boom a Potential Revenue Game-Changer?

Coherent is demonstrating a robust expansion in its market segments, driven primarily by significant demand in its Datacenter and Communications sectors. The first quarter of fiscal 2026 witnessed a 19% year-over-year increase in revenue, notwithstanding the exclusion of revenue from its divested Aerospace and Defense business. Additionally, non-GAAP gross margin grew by 200 basis points compared to the previous year, indicating improved operational efficiencies. A standout performer in this quarter is the Datacenter and Communications segment, which experienced a 26% year-over-year growth. This growth is anchored in the increased demand for Coherent’s 800 gig and 1.6T transceivers, particularly within AI data centers and communications. The company highlights a high level of demand driving sequential revenue growth through the fiscal year. Furthermore, Coherent is actively expanding its production capacity by ramping up its indium phosphide laser capacity, a key component for its transceiver modules.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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