Coherent delivered a record quarter with strong demand across its datacenter portfolio, evidenced by a 4x book-to-bill ratio. Management gave very bullish guidance for the coming year, stating FY27 growth will exceed FY26, driven by 1.6T ramps, OCS growth, and its cost-advantaged 6-inch indium phosphide capacity. The company also highlighted a significant CPO design win and expects the indium phosphide shortage to persist for years. Q2 FY26 Revenue of $1.69B (+9% Q/Q pro-forma), with Non-GAAP EPS of $1.29.
Coherent delivered a record quarter with strong demand across its datacenter portfolio, evidenced by a 4x book-to-bill ratio. Management gave very bullish guidance for the coming year, stating FY27 growth will exceed FY26, driven by 1.6T ramps, OCS growth, and its cost-advantaged 6-inch indium phosphide capacity. The company also highlighted a significant CPO design win and expects the indium phosphide shortage to persist for years. Q2 FY26 Revenue of $1.69B (+9% Q/Q pro-forma), with Non-GAAP EPS of $1.29.
Management conveyed strong confidence, citing exceptional demand, record bookings, and clear growth visibility, while emphasizing execution and capacity expansion.
Guidance · revenue to $1.77B
Management highlighted extraordinary demand and visibility driven by AI data center buildout, with strong growth in 800G and 1.6T transceivers, and new products like OCS and CPO gaining traction. They expect sustained strong revenue growth through fiscal 27, citing over 4x…
Ramping of 6-inch indium phosphide is ahead of schedule, with wafer starts already at 80% of year-end target; this provides a significant cost advantage.
Management highlighted extraordinary demand and visibility driven by AI data center buildout, with strong growth in 800G and 1.6T transceivers, and new products like OCS and CPO gaining traction. They expect sustained strong revenue growth through fiscal 27, citing over 4x book-to-bill and long-term supply agreements. The CEO noted scale-up CPO opportunity is orders of magnitude larger than scale-
Book-to-bill exceeded 4x with orders extending into calendar 2027. Management conveyed strong confidence, citing exceptional demand, record bookings, and clear growth visibility, while emphasizing execution and capacity expansion.
Capital expenditures are increasing sequentially to support rapid capacity expansion, particularly in indium phosphide (6-inch wafers) and transceiver assembly. The company plans to double internal indium phosphide capacity by end of calendar year and is expanding in Malaysia and Vietnam. CFO noted capex will increase over the remainder of fiscal year.
Management conveyed strong confidence, citing exceptional demand, record bookings, and clear growth visibility, while emphasizing execution and capacity expansion.
“we experienced another step function increase in our data center bookings with a book-to-bill ratio that exceeded 4X...most of our calendar 26 is booked out, and calendar 27 is filling very, very quickly”
“A 6-inch wafer compared to a 3-inch wafer will produce more than four times as many chips at less than half the cost.”
“we recently secured an exceptionally large purchase order from a market-leading AI data center customer for a CPO solution that includes our new high-power CW laser...key factor in the customer's decision to partner with Coherent was the f…”
“we could be in a very sustained long period of supply demand imbalance on indium phosphide...The scale up CPO opportunity will dwarf the opportunity in scale out. It will be orders of magnitude larger.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 Q3 | $1.28–$1.48 | $1.38 | GUIDED |
| Gross margin | FY2026 Q3 | 38.5%–40.5% | 39.5% | GUIDED |
| Revenue | FY2026 Q3 | $1.7B–$1.84B | $1.77B | GUIDED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2026 Q3 | EPS | FY2026 Q4 | $1.52–$1.72 | $1.74 | Met / beat |
| FY2026 Q3 | Gross margin | FY2026 Q4 | 39%–41% | 38.47% | Met / beat |
| FY2026 Q3 | Revenue | FY2026 Q4 | $1.91B–$2.05B | $2.0455B | Met / beat |
Coherent's ramp of 6-inch indium phosphide wafers produces over 4x the chips at less than half the cost of 3-inch wafers, creating a significant cost advantage that will drive gross margin expansion over the next year. — This scale-up in the industry's key bottleneck component gives Coherent a structural cost and supply advantage over competitors who remain on 3-inch wafers, pressuring competitors' margins on 800G and 1.6T transceivers.
… the extraordinary growth of demand, we are investing in the rapid expansion of our production capacity. For example, we significantly increased our indium phosphide production capacity in Q2, and we are executing on track to our plan to double our internal indium phosphide production capacity by the fourth quarter of this calendar year. As a reminder, our indium phosphide capacity expansion is driven by our ramp of six-inch wafer production, A 6-inch wafer compared to a 3-inch wafer will produce more than four times as many chips at less than half the cost. Our production team is doing an outstanding job ramping our 6-inch indium phosphide production, and I'd like to take the opportunity to thank our team for executing ahead of our plan in Q2. We are ramping production in parallel at two sites, Sherman, Texas, and Jarfalla, Sweden. We are in production with three different types of key transceiver components on 6-inch indium phosphide. EMLs, CW lasers, and photodiodes. Our 6-inch yields continue to exceed the yields of our 3-inch production lines. In addition, we have multiple 6-inch indium phosphide substrate suppliers, and we have secured committed substrate supply that …
Coherent's data center book-to-bill exceeded 4x as customers place orders further out, with most of calendar 2026 already booked and calendar 2027 filling quickly, providing unprecedented visibility.
Coherent secured a large purchase order for a CPO (co-packaged optics) solution from a market-leading AI data center customer, with the key winning factor being its US-based 6-inch indium phosphide production in Texas.
Industry demand for indium phosphide is now being driven not only by transceivers but also by the prospect of optical scale-up networks (CPO for scale-up), which could be orders of magnitude larger than pluggables, keeping the product in supply-demand imbalance for years.