Coherent Reports Record Q2 Revenue on Surging AI Data Center Demand

Key Facts

1Coherent reported record Q2 revenue of $1.69 billion, a 17% increase year-over-year.

2The Datacenter & Communications segment now accounts for over 70% of total revenue.

3Non-GAAP gross margin expanded to 39% due to yield improvements and pricing optimization.

Coherent (COHR) announced record-breaking financial results for the second quarter, driven by unprecedented demand for AI-related hardware. The company reported revenue of $1.69 billion, marking a 17% increase compared to the previous year and significantly exceeding market expectations. This growth was primarily fueled by the Datacenter & Communications segment, which now accounts for more than 70% of total revenue. Specifically, the surge in demand for 800G and 1.6T optical transceivers used in AI infrastructure played a critical role in this performance. Additionally, Non-GAAP gross margins expanded to 39% as a result of improved manufacturing yields and pricing optimization. These results underscore the robust health of the high-speed optical supply chain amidst the ongoing global expansion of AI data centers.