Coherent

COHR Q3 2025 Earnings

Reported May 7, 2025 at 4:05 PM ET · SEC Source

Q3 25 EPS

$0.91

BEAT +6.23%

Est. $0.86

Q3 25 Revenue

$1.50B

BEAT +3.97%

Est. $1.44B

vs S&P Since Q3 25

+342.5%

BEATING MARKET

COHR +370.0% vs S&P +27.5%

Market Reaction

Did COHR Beat Earnings? Q3 2025 Results

Coherent delivered a standout fiscal third quarter, posting non-GAAP diluted EPS of $0.91 against a consensus estimate of $0.86, a 6.23% beat, while revenue of $1.50 billion topped expectations by 3.97% and climbed 23.9% year-over-year, marking a new… Read more Coherent delivered a standout fiscal third quarter, posting non-GAAP diluted EPS of $0.91 against a consensus estimate of $0.86, a 6.23% beat, while revenue of $1.50 billion topped expectations by 3.97% and climbed 23.9% year-over-year, marking a new quarterly record for the company. The engine behind the results was unmistakably AI infrastructure: Coherent's Networking segment generated $897.30 million in revenue, up 45% year-over-year, as hyperscalers continued pouring capital into optical interconnects for data center buildouts. Non-GAAP operating income nearly doubled to $279.30 million from $151.90 million a year ago, reflecting meaningful margin expansion even as $73.80 million in restructuring charges weighed on GAAP results. CEO Jim Anderson, recently named the highest-paid CEO in the U.S., also highlighted the company's geographically diverse supply chain as a buffer against tariff-related uncertainty. Looking ahead, management guided Q4 revenue of $1.43 billion to $1.57 billion with non-GAAP EPS of $0.81 to $1.01, signaling confidence in sustained demand from AI-driven customers.

Key Takeaways

  • Strong AI-related datacenter demand driving record revenue
  • Networking segment revenue grew 45% Y/Y to $897.3 million
  • Non-GAAP gross margin expanded 490 bps Y/Y to 38.5%
  • Datacenter and communications market represented 46% of revenue with 46% Y/Y growth
  • Revenue growth and gross margin expansion drove significant Y/Y EPS improvement
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COHR YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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COHR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q2 26
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COHR Revenue by Geography

Regional revenue distribution

“We delivered strong growth and profitability in the March quarter with record revenue driven by another quarter of strong AI-related datacenter demand. We also introduced many new industry-leading optical networking products and technologies during the past quarter which position us well for long-term growth.”

— Jim Anderson, Q3 2025 Earnings Press Release