Coherent Corp

coherent.com

What Do They Do?

Sells optical networking systems and components to datacenter operators and communications companies, plus industrial laser and materials products to manufacturers and scientific instrument makers.

How Do They Make Money?

Most revenue comes from product sales: customers generally pay within 30 to 90 days after products ship or are delivered. Separately sold maintenance and extended warranties provide service over time.

revenue

Segment	Share	Revenue	How money arrives
Datacenter & Communications Sold outright	74% FY2023: 57%		Sold outright
Industrial Sold outright	26% FY2023: 43%		Sold outright

Who Are Their Customers?

Customers include datacenter operators, communications companies, industrial manufacturers, and scientific-instrumentation customers. Coherent sells through its own sales force and through representatives and distributors; its sales team works with major equipment makers and end users.

Customers above 10% of revenue, FY2026

of revenue from two customers (20%, 12%)

FY2024: 10% from one customer

Do Revenues Turn Into Profits?

Yes. It kept 11 cents of every revenue dollar as net income in FY2026, but spent more cash than it brought in: free cash flow was −$1B.

Operating income, FY2026

13% of revenue

▲ +69% vs FY2025 ($534.9M, 9%)

Net income, FY2026

11% of revenue

▲ +1531% vs FY2025 ($49.4M, 1%)

Free cash flow, FY2026

−14% of revenue

▼ Now a loss vs FY2025 ($192.8M, 3%)

How Are They Changing?

Growing. Revenue grew 2.1x in 4 years, from $3.3B in FY2022 to $7.1B in FY2026, about 21% a year.

Revenue over time

Datacenter & Communications Industrial

$10B$5B$0

FY2023 FY2024 FY2025 FY2026

Comments