Coherent Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did COHR Beat Earnings? Q3 2025 Results
Coherent delivered a standout fiscal third quarter, posting non-GAAP diluted EPS of $0.91 against a consensus estimate of $0.8566 — a 6.23% beat — while revenue of $1.50 billion topped expectations by 3.97% and climbed 23.9% year-over-year, marking a new quarterly record for the company. The engine behind the results was unmistakably AI infrastructure: Coherent's Networking segment generated $897.30 million in revenue, up 45% year-over-year, as hyperscalers continued pouring capital into optical interconnects for data center buildouts. Non-GAAP operating income nearly doubled to $279.30 million from $151.90 million a year ago, reflecting meaningful margin expansion even as $73.80 million in restructuring charges weighed on GAAP results. CEO Jim Anderson — recently named the highest-paid CEO in the U.S. — also highlighted the company's geographically diverse supply chain as a buffer against tariff-related uncertainty. Looking ahead, management guided Q4 revenue of $1.43 billion to $1.57 billion with non-GAAP EPS of $0.81 to $1.01, signaling confidence in sustained demand from AI-driven customers.
- Strong AI-related datacenter demand driving record revenue
- Networking segment revenue grew 45% Y/Y to $897.3 million
- Non-GAAP gross margin expanded 490 bps Y/Y to 38.5%
- Datacenter and communications market represented 46% of revenue with 46% Y/Y growth
- Revenue growth and gross margin expansion drove significant Y/Y EPS improvement
“We delivered strong growth and profitability in the March quarter with record revenue driven by another quarter of strong AI-related datacenter demand. We also introduced many new industry-leading optical networking products and technologies during the past quarter which position us well for long-term growth.”
Coherent CEO, on the earnings call
Forward Guidance & Outlook
For Q4 fiscal 2025, Coherent expects revenue of $1.425 billion to $1.575 billion, non-GAAP gross margin of 37% to 39%, non-GAAP operating expenses of $290 million to $310 million, non-GAAP tax rate of 21% to 24%, and non-GAAP EPS of $0.81 to $1.01.
COHR YoY Financials
COHR Revenue by Segment
COHR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.