Coherent Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.33%.
Did COHR Beat Earnings? Q4 2025 Results
Coherent Corp. closed out fiscal 2025 on a high note, posting record Q4 results that topped Wall Street expectations on both the top and bottom lines. Non-GAAP diluted EPS of $1.00 cleared the $0.92 consensus by 8.70%, while revenue of $1.53 billion edged past the $1.51 billion estimate and marked 16.4% growth year-over-year — momentum driven almost entirely by an AI datacenter boom that pushed Networking segment revenue to $945.20 million, up sharply from $679.80 million in the year-ago period. Demand for high-speed interconnects, including first shipments of 1.6T datacom transceivers, was the single clearest catalyst behind the outperformance. The company is simultaneously reshaping its portfolio, with a planned divestiture of its Aerospace and Defense business that will trim roughly $20 million from quarterly revenue. That headwind is reflected in <a href="https://247wallst.com/investing/2025/11/05/what-to-expect-on-coherent-cohr-q1-earnings-coverage/">Q1 FY26 guidance</a> of $1.46 billion to $1.60 billion in revenue and non-GAAP EPS of $0.93 to $1.13, a range that left some analysts cautious despite the otherwise strong print.
- Strong AI datacenter demand driving Networking segment growth of 39% YoY in Q4
- Datacenter and Communications market represented 51% of FY25 revenue
- Revenue growth of 23% YoY for full fiscal year 2025
- Non-GAAP gross margin expansion of 358 basis points YoY for FY25
- Non-GAAP EPS expansion of 191% YoY for FY25
“We delivered a strong fiscal 2025 with revenue growth of 23% and non-GAAP EPS expansion of 191%. We believe we are well positioned to continue to drive strong revenue and profit growth over the long-term given our exposure to key growth drivers such as AI datacenters. We also continue to optimize and focus our portfolio with the recently announced agreement to sell our Aerospace and Defense business. As we enter a new fiscal year, we are excited about the growth opportunities ahead of us.”
Coherent CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY2026, Coherent expects revenue of $1.46 billion to $1.60 billion, non-GAAP gross margin of 37.5% to 39.5%, non-GAAP operating expenses of $290 million to $310 million, non-GAAP tax rate of 18% to 22%, and non-GAAP EPS of $0.93 to $1.13. This outlook excludes approximately $20 million in Aerospace and Defense revenue expected to be divested during the quarter. Effective July 1, 2025, the company realigned into two reporting segments: Datacenter & Communications and Industrial.
COHR YoY Financials
COHR Revenue by Segment
COHR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.