Coherent, Inc. Q2 2026 Earnings Recap

Coherent reported a robust fiscal Q2 2026 with a 22% year-over-year revenue increase, driven by exceptional demand for photonic technology in data centers and communications sectors, alongside significant improvements in profit margins.

Key Takeaways

• Revenue rose 9% sequentially and 22% year-over-year, excluding divested segments.
• Non-GAAP EPS grew 11% sequentially and 35% year-over-year, reflecting effective cost management and operational leverage.
• Data center revenue surged 14% sequentially and 36% year-over-year, propelled by innovative 800 gig and 1.6 T transceivers.
• Record bookings in the data center segment resulted in a book-to-bill ratio exceeding 4x, indicating strong future demand visibility.
• Expansion of indium phosphide production is on track to double by Q4, enhancing operational capabilities and cost efficiencies.