Coherent Q4: AI Optics to Drive $3B in Quarterly Revenue

Lumentum is a tough act to follow with revenue doubling year-over-year and four consecutive quarters of 20%+ growth. However, Coherent only recently inflected from 6%-7% QoQ growth to now 13.3% QoQ growth this quarter and 12.4% expected next quarter. The YoY basis is also clearly in Lumentum’s shadow at 34% YoY growth this quarter, and 45.4% next quarter. If we look at Coherent on an individual basis, some important milestones were reached this quarter, such as reaching $2 billion in quarterly revenue for the first time. Management stated they will reach $3 billion in quarterly revenue by YE27 whereas analyst consensus has this at $2.63B.