Coherent’s Book-to-Bill Tops 4x with Indium Phosphide Ramp to Boost Output
Coherent’s datacenter bookings hit a book-to-bill ratio above 4x with most 2026 capacity booked and order visibility extending into 2028. The six-inch indium phosphide ramp could quadruple chip output at less than half the cost while datacenter and communications revenue, now over 70%, rose 34% year over year.
1. Datacenter Bookings and Revenue Growth
Coherent reported datacenter bookings that drove its book-to-bill ratio above 4x, with most capacity reserved for 2026 and visibility into 2028. Datacenter and communications segments now represent over 70% of total revenue and grew 34% year on year, underpinned by demand for 800G, 1.6T, optical circuit switching and coherent pluggable optics.
2. Indium Phosphide Ramp and Margin Improvement
The company is ramping its six-inch indium phosphide manufacturing, which is set to increase chip output more than fourfold at under half the current cost. This expansion is expected to structurally boost gross margins by lowering per-unit expenses and supporting scalability for surging AI and data-center infrastructure demand.