Coherent Q2 Revenue Rises 17% to $1.69B on 800G, 1.6T Optics Demand
Coherent reported record Q2 revenue of $1.69 billion, up 17% year over year and 7% sequentially, driven by surging demand for 800G and 1.6T data center optics. Datacenter & Communications now makes up over 70% of revenue while non-GAAP gross margin expanded to 39% and operating margin to 19.9%.
1. Record Q2 Revenue and Growth
Coherent posted record second-quarter revenue of $1.69 billion, marking a 17% increase year over year and a 7% sequential rise, driven by broad demand for its 800G and 1.6T optical products.
2. Datacenter & Communications Segment Expansion
The Datacenter & Communications segment now represents over 70% of total revenue, growing 11% sequentially and supporting a 14% sequential jump in data center sales, underpinned by strong hyperscale customer orders.
3. Margin Expansion and Manufacturing Advances
Non-GAAP gross margin rose to 39% and operating margin reached 19.9% on the back of yield improvements and pricing optimization, while early output gains from six-inch indium phosphide manufacturing are expected to boost capacity and cost efficiency further.