Core Insights - Coherent reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and showing an increase from $0.61 per share a year ago, resulting in an earnings surprise of +7.53% [1] - The company achieved revenues of $1.53 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.00% and up from $1.31 billion year-over-year [2] - Coherent has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The earnings surprise for the previous quarter was +5.81%, with actual earnings of $0.91 per share compared to an expected $0.86 [1] - Coherent shares have increased approximately 23% since the beginning of the year, significantly outperforming the S&P 500's gain of 9.6% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $1.54 billion, and for the current fiscal year, it is $4.56 on revenues of $6.46 billion [7] - The estimate revisions trend for Coherent was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Technology Services industry, to which Coherent belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Data and Key Metrics Changes - Full year revenue for fiscal 2025 increased by approximately 23% year over year to a record $5,810,000,000, driven by strong growth in data center and communications business [6][27] - Q4 revenue was a record $1,530,000,000, up 2% sequentially and 16% year over year [27] - Non-GAAP EPS for Q4 approximately doubled year over year to $1 per share, while full year non-GAAP EPS was $3.53, representing a 191% year over year growth [6][30] - Non-GAAP gross margin for Q4 was 30%, down 43 basis points sequentially but up 220 basis points year over year; full year gross margin was 37.9%, up 358 basis points from 2024 [27][28] Business Line Data and Key Metrics Changes - Data center and communications revenue grew by 51% in fiscal 2025, with Q4 revenue increasing 39% year over year [9] - Communications revenue increased 23% for fiscal 2025, with Q4 growth of 42% year over year [15] - Industrial related markets saw a revenue decrease of 2% for the year, with Q4 revenue down 8% year over year [17] Market Data and Key Metrics Changes - Strong growth in AI data centers and communications was noted, with full year data center revenue increasing by 61% [9] - Initial revenue shipments of new 1.6T transceivers began in Q4, with expectations for ramping volumes throughout the calendar year [10] - The company expects revenue from a new multiyear agreement with Apple for VCSEL products to begin in 2026 [13] Company Strategy and Development Direction - The company is focused on photonics technology, which is critical for applications in AI data centers, communications, and industrial applications [8] - A strategic decision was made to sell the Aerospace and Defense business for $400,000,000 to streamline the portfolio and concentrate investments in high-growth areas [19][32] - The company plans to use proceeds from the sale to pay down debt, which is expected to be accretive to EPS [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand signals for data center and communications, expecting sequential growth in the upcoming quarter [40] - The company views its U.S. manufacturing footprint as a competitive advantage, particularly in light of recent tariff policies [21][22] - Management remains optimistic about achieving long-term financial targets and gross margin improvements, aiming for greater than 42% gross margin in the future [90] Other Important Information - The company has tripled its indium phosphide capacity year over year and is ramping production at its new six-inch indium phosphide line in Sherman, Texas [12] - The company is experiencing strong bookings and demand forecasts across data center customers, particularly for transceivers [10] Q&A Session Summary Question: What is the growth outlook for the data center business in fiscal 2026? - Management noted strong demand signals and expects data center and communications to be up sequentially, driven by 800 gig and 1.6T transceivers [40][41] Question: Can you provide an update on the six-inch indium phosphide platform? - Production began in August, with expectations for increased capacity and lower costs as the ramp progresses [46][47] Question: What product categories might be down sequentially in the guidance? - Industrial markets are expected to be flat to down sequentially, with a cautious view due to macroeconomic factors [58] Question: How much incremental revenue is expected from the Apple relationship? - Revenue from the expanded partnership is expected to kick in during the second half of the next calendar year [51][66] Question: What are the competitive advantages of the OCS technology? - The OCS technology is based on digital liquid crystal, offering higher reliability and performance compared to traditional mechanical solutions [74][76] Question: What is the outlook for gross margins? - Management expects gross margins to benefit from the Apple arrangement and ongoing gross margin expansion initiatives [90]

Financial Data and Key Metrics Changes - Full year revenue for fiscal 2025 increased by approximately 23% year over year to a record $5,810 million, driven by strong growth in data center and communications business [5][25] - Q4 revenue was a record $1,530 million, up 2% sequentially and 16% year over year [25] - Non-GAAP EPS for Q4 approximately doubled year over year to $1 per share, while full year non-GAAP EPS was $3.53, representing a 191% year over year growth [5][28] Business Line Data and Key Metrics Changes - Data center and communications revenue grew by 51% in fiscal 2025, with Q4 revenue increasing 39% year over year [7][13] - Communications revenue increased 23% for fiscal 2025, with Q4 growth of 42% year over year [13] - Industrial related markets saw a revenue decrease of 2% for the year, with Q4 revenue down 8% year over year [15][16] Market Data and Key Metrics Changes - In the data center market, full year revenue increased by 61%, with Q4 growth of 38% year over year [7] - Strong demand for AI data centers and communications was noted, with significant bookings and demand forecasts [7][8] - The industrial laser products segment experienced growth driven by display capital equipment and semi-cap equipment markets, despite a decline in silicon carbide demand [15][16] Company Strategy and Development Direction - The company is focused on photonic technology, which is critical for applications in AI data centers, communications, and industrial applications [6] - A strategic decision was made to sell the Aerospace and Defense business for $400 million to streamline the portfolio and concentrate investments in areas of long-term growth [17][29] - The company plans to use proceeds from the sale to pay down debt, which is expected to be accretive to EPS [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand signals for data center and communications, expecting sequential growth in the upcoming quarter [38][82] - The company anticipates continued growth in fiscal 2026, driven by innovations in photonic technology and strong customer demand [22][23] - Management noted that the current tariff policy environment is not expected to significantly impact operations, with potential competitive advantages from recent semiconductor tariff announcements [18][20] Other Important Information - The company has ramped up indium phosphide production capacity, which is expected to enhance supply chain resiliency and lower costs [10][46] - Initial revenue shipments of new optical circuit switch products began, representing a $2 billion expansion of the addressable market opportunity [12] - The company has entered into a multiyear agreement with Apple for VCSEL products, expected to contribute to revenue starting in 2026 [11][65] Q&A Session Summary Question: What is the growth outlook for the data center business in fiscal 2026? - Management indicated strong demand signals and expected sequential growth, with specific drivers including 800 gig transceivers and initial revenue from 1.6T transceivers [38][40] Question: What is the status of the six-inch indium phosphide platform in Sherman, Texas? - Production began in August, with expectations for increased capacity and lower costs as the ramp progresses [45][46] Question: What product categories might be down sequentially at the midpoint of guidance? - Industrial markets are expected to be flat to down sequentially, with caution due to macroeconomic factors [56][96] Question: How much incremental revenue is expected from the Apple relationship? - Revenue from the expanded partnership is expected to begin in the second half of 2026, with a multiyear partnership structure [65][66] Question: What are the competitive advantages of the optical circuit switch technology? - The non-mechanical digital liquid crystal technology offers higher reliability and performance compared to traditional MEMS solutions [71][72] Question: What is the outlook for gross margins in fiscal 2026? - Management expects improvements in gross margins driven by ongoing cost reductions and pricing optimization, with a long-term target of greater than 42% [87][88]

Financial Performance Highlights - The company reported a strong fiscal year 2025, with revenue reaching $5.81 billion, a 23% increase compared to $4.7 billion in fiscal year 2024[7] - Non-GAAP Earnings Per Share (EPS) significantly increased by 191%, from $1.21 in FY24 to $3.53 in FY25[7] - Gross margin improved by 358 basis points, reaching 37.9% in FY25 compared to 34.3% in FY24[7] Revenue Segmentation and Trends - Datacenter and Communications sector accounted for 51% of FY25 revenue[7] - Industrial sector accounted for 7% of FY25 revenue[7] - Instrumentation sector accounted for 5% of FY25 revenue[7] - Electronics sector accounted for 29% of FY25 revenue[7] - In Q4 2025, Networking segment revenue was $945 million, representing 62% of the total revenue distribution[10, 11] - In Q4 2025, Lasers segment revenue was $348 million, representing 15% of the total revenue distribution[10, 11] - In Q4 2025, Materials segment revenue was $236 million, representing 23% of the total revenue distribution[10, 11] Fiscal Year 2026 Q1 Outlook - The company anticipates revenue between $1.46 billion and $1.60 billion for the first quarter of fiscal year 2026[22] - Non-GAAP gross margin is projected to be between 37.5% and 39.5%[22] - Non-GAAP operating expenses are expected to range from $290 million to $310 million[22] - The non-GAAP tax rate is estimated to be between 18% and 22%[22] - Non-GAAP earnings per share are projected to be between $0.93 and $1.13[22]

Sale of Aerospace and Defense Business - Coherent announced the sale of its aerospace and defense business to private equity firm Advent for $400 million [2] - Proceeds from the sale will be used to reduce debt, which will be immediately accretive to Coherent's EPS [2] - The deal is expected to close in the current quarter [2] Q4 Financial Results - Coherent reported quarterly earnings of $1 per share, beating the analyst consensus estimate of 91 cents [2] - Quarterly revenue was $1.52 billion, exceeding the analyst consensus estimate of $1.5 billion and up from $1.31 billion in the same period last year [3] - The company experienced revenue growth of 23% and non-GAAP EPS expansion of 191% for fiscal 2025 [3] Future Outlook - Coherent expects first-quarter revenue to be between $1.46 billion and $1.6 billion [4] - Following the earnings report, Coherent's stock was down 17.53% at $94.02 in extended trading [4]

Exhibit 99.1 Coherent Corp. 375 Saxonburg Blvd. Saxonburg, PA 16056-9499 USA PRESS RELEASE COHERENT CORP. REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2025 RESULTS SAXONBURG, Pa., Aug. 13, 2025 (GLOBE NEWSWIRE) – Coherent Corp. (NYSE: COHR) ("Coherent," "We," or the "Company"), a global leader in photonics, announced financial results today for the fiscal fourth quarter and full year fiscal 2025 ended June 30, 2025. Revenue for the fourth quarter of fiscal 2025 was a record $1.53 billion, with GAAP gross mar ...

Core Insights - Coherent Corp. reported record revenues of $1.53 billion for Q4 FY25 and $5.81 billion for the full fiscal year, marking a year-over-year growth of 23% [1][2][4] - The company experienced a GAAP gross margin of 35.7% in Q4 FY25 and 35.2% for the full year, with non-GAAP gross margins at 38.1% and 37.9% respectively, indicating significant margin expansion [1][2][4] - Despite a GAAP net loss of $0.83 per diluted share in Q4 FY25, the non-GAAP EPS was $1.00, reflecting a substantial improvement in profitability metrics [1][2][4] Financial Performance - Q4 FY25 revenues reached $1,529 million, up 2.1% quarter-over-quarter and 16.4% year-over-year, while full-year revenues were $5,810 million, a 23.4% increase from FY24 [1][2][5] - GAAP gross margin improved by 284 basis points year-over-year to 35.2% for FY25, while non-GAAP gross margin increased by 358 basis points to 37.9% [4][5] - The company reported a GAAP net loss of $0.52 per diluted share for FY25, an improvement of $1.32 compared to the previous year, while non-GAAP EPS rose by $2.32 to $3.53 [4][5] Operational Highlights - The CEO highlighted strong revenue growth driven by key growth areas such as AI datacenters, and the company is optimizing its portfolio by selling its Aerospace and Defense business [3][4] - Operating cash flow improved, allowing the company to repay approximately $437 million of outstanding debt during FY25 [3] - The company commenced revenue shipments of its 1.6T datacom transceivers and achieved initial revenue from its optical circuit switch platform, expanding its addressable market by over $2 billion by 2030 [7][8] Business Outlook - For Q1 FY26, the company expects revenues between $1.46 billion and $1.60 billion, with gross margins projected between 37.5% and 39.5% on a non-GAAP basis [15] - The sale of the Aerospace and Defense business is anticipated to close in the current quarter, which will exclude approximately $20 million in revenue from future forecasts [9]

Core Viewpoint - Coherent Corp. has entered into a definitive agreement to sell its Aerospace and Defense business to Advent for $400 million, which will be used to reduce debt and is expected to be immediately accretive to Coherent's EPS [1][2]. Company Overview - Coherent is a global leader in photonics, specializing in optical and laser systems for various applications, including defense [2][5]. - The Aerospace and Defense business employs approximately 550 people and operates across 10 geographic sites [2]. Strategic Rationale - The sale is part of Coherent's strategic portfolio optimization process, allowing the company to focus on core growth markets and products [2][3]. - The CEO of Coherent expressed satisfaction with the agreement, highlighting its alignment with the company's strategic goals [2]. Advent's Perspective - Advent views the Aerospace and Defense business as an exceptional opportunity that complements its existing investments in national security technologies [3][10]. - Advent plans to invest significantly in research and development to enhance the business's leadership in advanced laser and optical solutions [3]. Transaction Details - The transaction is expected to close in the third quarter of calendar year 2025, pending customary closing conditions [4]. - Post-closure, the Aerospace and Defense business will operate under a new name, which will be announced later [4].

Core Insights - Coherent Corp. (COHR) is set to release its fourth-quarter fiscal 2025 results on August 13, after market close, and has consistently surpassed the Zacks Consensus Estimate in the past four quarters with an average earnings surprise of 15.2% [1] Revenue Expectations - The Zacks Consensus Estimate for Coherent's revenues is $1.5 billion, reflecting a 15.2% increase compared to the same quarter last year [2] - The Networking segment is expected to generate $930.2 million, indicating a significant year-over-year growth of 21.9%, driven by strong demand in the AI data center market [2][9] - The Materials segment's consensus estimate is $231.2 million, suggesting a decline of 2.6% year-over-year due to ongoing softness in the consumer electronics market [3] - For the Lasers segment, the estimate stands at $358.4 million, which is a 3% increase from the previous year, supported by rising demand for excimer annealing lasers and strength in the semi-cap equipment market [4][9] Earnings Projections - The consensus estimate for earnings per share is 93 cents, indicating a substantial year-over-year growth of 52.5% [4] - Coherent's model predicts an earnings beat, supported by a positive Earnings ESP of +8.32% and a Zacks Rank of 1 (Strong Buy) [5]

Core Insights - Coherent (COHR) is expected to report quarterly earnings of $0.93 per share, reflecting a year-over-year increase of 52.5% [1] - Anticipated revenues for the quarter are projected to be $1.51 billion, representing a 15.2% increase compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised 3.8% higher in the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts estimate 'Revenues- Materials' at $231.23 million, a decrease of 17.2% from the prior-year quarter [5] - 'Revenues- Networking' is projected at $930.18 million, showing an increase of 36.8% year over year [5] - 'Revenues- Lasers' are expected to reach $358.41 million, indicating a slight increase of 0.9% [5] Market-Specific Revenue Estimates - 'Revenue by Market- Instrumentation' is estimated at $102.65 million, reflecting a year-over-year change of 1.4% [6] - 'Revenue by Market- Communications' is projected at $927.02 million, with a year-over-year increase of 36.7% [6] - 'Revenue by Market- Industrial' is expected to be $422.91 million, indicating a decrease of 2% from the prior-year quarter [6] - 'Revenue by Market- Electronics' is anticipated to reach $64.24 million, reflecting a significant decline of 38.1% from the year-ago quarter [7] Stock Performance - Over the past month, Coherent shares have returned +21.5%, outperforming the Zacks S&P 500 composite's +1.9% change [7] - Coherent currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near future [7]