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Dec 31, 2024
Coherent Q2 2025 Earnings Report
Coherent Corp. reported strong growth in revenue and significant improvements in gross margin and operating margin for the second quarter of fiscal 2025.
Key Takeaways
Coherent Corp. announced record revenue of $1.43 billion for the second quarter of fiscal 2025, marking a 27% year-over-year increase. The company also saw significant improvements in both GAAP and non-GAAP gross margins and EPS, driven by strong AI-related Data Center demand and growth in the Telecom business.
Record revenue of $1.43 billion, up 27% year-over-year.
GAAP gross margin increased by 452 bps year-over-year to 35.5%.
Non-GAAP gross margin increased by 363 bps year-over-year to 38.2%.
Diluted GAAP EPS improved by $0.82 year-over-year to $0.44, and non-GAAP EPS improved by $0.69 year-over-year to $0.95.
Coherent
Coherent
Coherent Revenue by Segment
Revenue by Segment
Networking Revenue
CapyFin.comMaterials Revenue
CapyFin.comLasers Revenue
CapyFin.com Forward Guidance
For the third quarter of fiscal 2025, Coherent Corp. expects revenue between $1.39 billion and $1.48 billion, non-GAAP gross margin between 37% and 39%, total non-GAAP operating expenses between $285 million and $305 million, and non-GAAP EPS between $0.75 and $0.95.
Positive Outlook
- Expected revenue of $1.39 billion to $1.48 billion for Q3 FY25.
- Anticipated non-GAAP gross margin between 37% and 39% for Q3 FY25.
- Expected non-GAAP EPS between $0.75 and $0.95 for Q3 FY25.
- CHIPS Act funding to increase Indium Phosphide (InP) production capacity.
- First customer order for new Optical Circuit Switch (OCS) based on unique digital liquid crystal technology.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- Potential for market conditions to impact future performance.
- Risks associated with realizing benefits from R&D investments and commercialization of innovations.
- Uncertainty regarding the Company's stock price performance relative to industrial technology leaders.
- Potential for business and economic disruption from worldwide health epidemics or outbreaks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income