Coherent 2025 Q4 Earnings Wider Losses Amid Revenue Growth

Coherent reported its fiscal 2025 Q4 earnings on Aug 13th, 2025, delivering a 16.4% year-over-year revenue increase to $1.53 billion. However, the company posted a broader-than-expected net loss of $98.10 million, or $0.83 per share, signaling financial challenges despite strong top-line performance.

Revenue
The revenue increase was driven by robust demand in the networking and lasers segments. Networking revenue reached $945.20 million, reflecting strong growth in data center and communications infrastructure. The lasers segment contributed $348 million, demonstrating continued demand for high-performance laser solutions. Meanwhile, the materials segment generated $236.20 million, contributing to the overall revenue expansion.

Earnings/Net Income
Coherent’s financial performance deteriorated in the quarter, with a net loss of $98.10 million, a 108.7% increase from the $47 million loss in the prior year period. The loss per share widened to $0.83 from $0.52, representing a 59.6% increase in losses. These results highlight the company’s ongoing cost pressures and operational challenges.

Price Action
Coherent’s stock experienced mixed short-term price movements in the days following the earnings report. While the stock fell 5.28% on the latest trading day, it rebounded with a 6.40% gain during the previous week and surged 20.62% month-to-date. These movements indicate market uncertainty but also suggest potential for recovery amid positive earnings momentum.

Post-Earnings Price Action Review
A strategy of buying Coherent shares following a revenue increase and holding for 30 days has historically delivered strong returns. Over the past three years, this approach yielded a 155.12% return, outperforming the benchmark by 99.30%. The strategy demonstrated a 48.39% compound annual growth rate and a 0% maximum drawdown, showcasing its effectiveness in capitalizing on COHR’s positive earnings signals.

CEO Commentary
James Robert Anderson, CEO, highlighted Coherent’s record fiscal 2025 performance, with total revenue up 23% to $5.81 billion and non-GAAP EPS tripling. He emphasized the company’s leadership in photonic innovation, including the development of 1.6T and 3.2T transceivers and the expansion of indium phosphide capacity. Anderson also noted the strategic sale of the Aerospace & Defense segment for $400 million to refocus on data center, communications, and industrial growth opportunities.

Guidance
For fiscal Q1 2026, Coherent expects revenue in the range of $1.46–$1.6 billion, with non-GAAP gross margin projected at 37.5–39.5%. Operating expenses are anticipated to be between $290–$310 million, and the company forecasts non-GAAP EPS of $0.93–$1.13, excluding expected post-sale A&D revenue. The management reiterated its confidence in long-term growth across key market segments.

Additional News
In the weeks following the earnings release, Coherent announced the expansion of its indium phosphide manufacturing capabilities, which is expected to enhance supply chain resilience and reduce costs. Additionally, the company announced the appointment of a new Chief Technology Officer, Sarah Lin, who brings extensive experience in photonics and high-speed communications. Finally, Coherent confirmed its participation in a joint research initiative with the U.S. Department of Energy to advance laser-based manufacturing technologies for the industrial sector.