Coherent says AI demand is outpacing factory capacity as FY2027 output sells out
AI Market Summary
Coherent posted record Q4 revenue of $2.05B, driven by 66% YoY data-center growth and margin expansion to 40.2%, reinforcing tight AI-photonics supply conditions. Management commentary that FY2027 capacity is effectively sold out, with orders extending into 2028 and long-term agreements spanning the decade, improves forward demand visibility. Process improvements (e.g., 6-inch InP) suggest simultaneous capacity and profitability leverage near-term.
Impact level
● Medium
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Coherent reported record Q4 revenue of $2.05 billion, led by a 66% jump in Data Center revenue and an expansion in gross margin to 40.2%. The company said its fiscal 2027 capacity is effectively sold out, with purchase orders extending into 2028 and long-term agreements running through the decade. Wall Street consensus projects EPS rising from $9.26 in FY2027 to $18.47 by FY2029, according to Pythia Research.
