Coherent (NYSE:COHR) Q2 2026 Earnings call February 04, 2026 04:30 PM ET Company ParticipantsJim Anderson - CEOPaul Silverstein - SVP of Investor RelationsSherri Luther - CFOConference Call ParticipantsAtif Malik - Managing Director and Equity Research AnalystEzra Weener - VP and Equity Research AnalystGeorge Notter - Managing Director and Senior Research AnalystKarl Ackerman - Equity Research AnalystMichael Mani - Equity Research AnalystRuben Roy - Managing Director and Equity Research AnalystRyan Koontz - ...

Coherent (NYSE:COHR) Q2 2026 Earnings call February 04, 2026 04:30 PM ET Speaker6Greetings, and welcome to the Coherent second quarter fiscal year 2026 earnings call. It is now my pleasure to introduce your host, Mr. Paul Silverstein, Senior Vice President of Investor Relations for Coherent. Please go ahead.Speaker7Thank you, operator, and good afternoon, everyone. With me today are Jim Anderson, Coherent CEO, and Sherry Luther, Coherent CFO. During today's call, we will provide a financial and business rev ...

Key Takeaways CIEN & NOK compete in optical networking as carriers boost fiber spending to handle AI-driven traffic.CIEN expects 2026 revenue of $5.7$6.1B, citing solid demand from cloud, DCI & AI infrastructure investments.NOK expects double-digit optical growth on AI and cloud orders and an expanded portfolio after Infinera.Ciena Corporation (CIEN) and Nokia (NOK) are both established players in the telecommunications equipment industry, with a strong focus on optical networking solutions used by service ...

Financial Data and Key Metrics Changes - GlobalFoundries reported third-quarter revenue of $1.688 billion, flat compared to the prior quarter and a 3% decrease year-over-year [28] - Gross profit for the third quarter was $439 million, translating to a gross margin of approximately 26%, with an expansion of 80 basis points sequentially and 130 basis points year-over-year [31] - Operating profit was $260 million, resulting in an operating margin of 15.4%, which is at the high end of the guidance range and 180 basis points above the prior year period [31] - Net income for the third quarter was $232 million, an increase of approximately 1% from the prior year period, leading to diluted earnings of $0.41 per share [32] Business Line Data and Key Metrics Changes - Automotive revenue decreased approximately 17% sequentially but increased 20% year-over-year, driven by share and content expansion [29] - Smart mobile devices revenue increased approximately 10% sequentially but decreased approximately 13% year-over-year, primarily due to one-time pricing adjustments [29] - Home and industrial IoT revenue decreased approximately 14% sequentially and 16% year-over-year, mainly due to a reduction in wafer revenue associated with aerospace and defense applications [30] - Communications infrastructure and data center revenue increased approximately 2% sequentially and 32% year-over-year, with expectations for full-year 2025 revenue growth in the low 20% range [30] Market Data and Key Metrics Changes - The automotive segment represented approximately 18% of total revenue in the third quarter [22] - Smart mobile devices accounted for approximately 45% of total revenue, while home and industrial IoT represented approximately 15% [24] - Communications infrastructure and data center contributed approximately 10% of total revenue [25] Company Strategy and Development Direction - GlobalFoundries is focusing on scaling AI capabilities in data centers and expanding its optical networking market, with an estimated CAGR of approximately 40% through 2030 [8][9] - The company is committed to reshoring semiconductor supply chains to the U.S., with a $16 billion investment to expand U.S. manufacturing capabilities [15][16] - The strategy includes diversifying the business towards high-margin product platforms, with automotive expected to approach $1.5 billion in annual revenue by 2025 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture long-term growth opportunities driven by secular trends in AI and semiconductor demand [18] - The ongoing geopolitical tensions and supply chain challenges are prompting customers to seek non-China, non-Taiwan supply chains, which GlobalFoundries is well-positioned to support [14][15] - The company anticipates strong demand for its silicon photonics and GaN technologies, with significant growth expected in these areas [10][52] Other Important Information - GlobalFoundries secured nearly 150 new design wins across its end markets in the third quarter, representing more than 50% growth from the same quarter a year ago [18] - The company has a strong balance sheet with approximately $4.2 billion in cash and cash equivalents and total debt of $1.2 billion [33] Q&A Session Summary Question: Long-term differentiation of silicon photonics business - Management highlighted that GlobalFoundries has been early in developing silicon photonics, focusing on best-in-class device performance and building an ecosystem to support customer design needs [36][37] Question: Capital and CapEx needs for silicon photonics growth - Management indicated that while CapEx has been moderated, there is an expectation for a pickup in CapEx in 2026 to support the growth of the silicon photonics business [39][40] Question: Revenue guidance for smart mobile devices - Management expects a low double-digit % decline year-over-year for smart mobile devices in the fourth quarter, influenced by previous pricing adjustments [45] Question: Onshoring demand and pipeline - Management noted strong engagement from customers regarding U.S. onshoring, with a significant pipeline indicating a durable secular shift [48][49] Question: GaN strategy and competition - Management expressed excitement about GaN technology, emphasizing its role in improving power density and reducing losses, with a focus on high-quality, reliable devices [52][53]

Core Insights - Coherent Corp. will showcase its innovations in next-generation optical communications at ECOC 2025 in Copenhagen, Denmark [1][2] - The company aims to demonstrate its advanced technologies and contributions to thought leadership in the optical networking space [2] Recent Product Announcements - **2D VCSEL Array**: A 1.6T (32x50G) array designed for short-reach AI/ML datacenter interconnects, focusing on low latency and cost efficiency [3] - **100G ZR for Single-Fiber Operation**: The first dual-laser QSFP28 DCO module for single-fiber applications, offering 10x capacity upgrades on existing 10G infrastructure [4] - **400mW CW Laser**: A new laser delivering stable high output and ultra-low noise, designed for co-packaged optics and silicon photonics [5] - **High Precision Glass Molded 2D Lens Array**: Enables wafer-level manufacturing for multi-channel optical transmission, ideal for various applications including AR/VR [6] - **Quad-Channel IC Family**: New ICs for 800G/1.6T pluggables, providing industry-leading performance with lower power consumption [7] - **Wire Grid Polarizer for Datacom Transceivers**: Achieves a 50 dB extinction ratio and 98.5% efficiency, supporting high-speed datacom transceivers [8] Technology and Product Demonstrations - **Scalable Quantum-Safe Network Demo**: A proof-of-concept showcasing a quantum-safe networking solution integrated with high-performance optical transceivers [9][10] - **100G QSFP28-DCO ZR Dual Laser**: Demonstrates a transceiver with up to 300 km reach and 10x capacity gains [11] - **Active Ingress/Egress Latency Control**: Features a module enabling ultra-low latency variation for demanding applications [12] - **External Laser Source Module for CPO**: Integrates high-power lasers for next-generation optical systems [13] - **1.6T 2xFR4 with 6km Reach**: Extends reach from 2-3 km to 6 km, demonstrating excellent bit error rate [14] - **300G/lane Link**: A milestone demonstration towards enabling speeds higher than 200G/lane [15] - **Multi-Rail Technology**: Designed to deliver four times the capacity over existing fiber with efficient growth [16] Test and Measurement - **WaveAnalyzer 200B**: A portable analyzer capable of fast, precise insights into complex networks [17] - **WaveShaper 500B/X**: Offers unmatched flexibility for production testing of optical transceivers [18] Workshops and Market Focus - **Workshop on Modulator Technology**: Discussion on SiPho vs. InP for high-volume transceivers [19] - **Market Focus Sessions**: Topics include the impact of 400G lanes on datacenter markets and advances in optical components [20][21] Company Overview - Coherent is a global leader in photonics, providing technology solutions for datacenters, communications, and industrial markets [22][23]