Coherent Reports 22% Revenue Growth, Expands AI Datacenter Photonics

Coherent Corp outlined an ambitious long-term growth strategy focused on capitalizing on the AI datacenter market and expanding its presence in industrial sectors such as semiconductor capital equipment and precision manufacturing. The company projects over 22% revenue growth and a 2.8 times increase in earnings per share for fiscal year 2025, driven primarily by strong demand for optical transceivers and components used in AI datacenters. Leadership highlighted new product developments including optical circuit switches for data centers and industrial laser systems targeting microLED display production, aiming to sustain double-digit annual sales growth through 2030. Financial strategies emphasize disciplined profitable growth, improved margins, and debt reduction following the II-VI merger. Despite positive financial performance and market opportunities, analyst opinions remain mixed due to valuation concerns and market challenges, with some rating Coherent as a Buy and others more cautious. Overall, Coherent is positioned as a global photonics leader leveraging a broad technology portfolio to address high-value markets and create shareholder value.