Coherent Corp. reported a 24% year-over-year revenue increase for the third quarter of fiscal 2025, reaching $1.50 billion, as demand surged for its optical technologies supporting AI-driven data centers. The company also achieved a GAAP gross margin of 35.2% and a non-GAAP EPS of $0.91, buoyed by expansion in its networking and photonics business lines. CEO Jim Anderson cited strong AI-related data center demand and new product introductions as key drivers for the record quarterly revenue.
During the quarter, Coherent launched and demonstrated several next-generation optical networking technologies, many of which were showcased at OFC 2025. These included a new 400G EML laser designed for 3.2T transceivers, a comprehensive co-packaged optics (CPO) portfolio featuring high-power InP CW lasers and VCSEL-based designs, and three internally developed 1.6T transceivers leveraging distinct platforms—Silicon Photonics, EML, and VCSEL. Coherent also highlighted its 200G VCSELs and detectors aimed at 1.6T multimode interconnects for short-reach applications. As part of its industry alignment, Coherent deepened its partnership with NVIDIA, integrating silicon photonics and CPO technologies into the next generation of AI networking switches.
Looking ahead, Coherent expects Q4 FY2025 revenue between $1.425 billion and $1.575 billion, with non-GAAP gross margins in the range of 37–39%. The company is maintaining its focus on operating leverage, having also paid down $136 million in debt during the quarter. Continued investment in R&D and AI networking solutions remains central to Coherent’s long-term growth strategy.
- Q3 FY2025 revenue reached $1.50 billion, up 23.9% YoY, with non-GAAP EPS of $0.91.
- Optical networking growth driven by AI data center demand and next-gen transceiver development.
- Introduced new 3.2T-capable 400G EML, 1.6T multi-tech transceivers, and 200G VCSEL solutions.
- Strengthened NVIDIA partnership on CPO for AI switches; six product awards at OFC 2025.
- Forecasting Q4 revenue between $1.425–$1.575 billion and gross margin up to 39% (non-GAAP).
“We delivered strong growth and profitability in the March quarter with record revenue driven by another quarter of strong AI-related datacenter demand,” said Jim Anderson, CEO of Coherent.
