Strong Financial Performance: Coherent reported a record revenue of $5.81 billion for fiscal 2025, reflecting a 23% year-over-year growth. Q4 revenue also hit a record of $1.53 billion, up 16% year-over-year. Non-GAAP EPS for the full year reached $3.53, a striking 191% increase compared to the prior year.

Data Center and Communications Growth Outlook: Revenue growth in the data center and communications market surged by 51% in fiscal 2025, with continued strong demand for AI datacenter capacity. Coherent anticipates further sequential revenue growth in this segment for Q1 fiscal 2026, driven by new product launches like 1.6T Transceivers and optical circuit switches (OCS).

Challenges in Industrial Segment: Although the industrial-related end markets showed growth in lasers, the overall revenue for this segment declined by 2% year-over-year. For Q1 fiscal 2026, Coherent expects to see a tentative outlook with potential sequential declines, particularly in the industrial markets, influenced by macroeconomic uncertainty and soft demand.