Coherent's Datacenter Business Powers its Revenue Growth

COHR reported fiscal Q4 revenue of $2.05 billion, with its datacenter and communications segment delivering $1.62 billion—79% of total revenue and a sharp jump from $1.02 billion in the prior-year quarter. The stock has surged 171% over the past year as AI infrastructure buildouts and optical transceiver upgrades drive demand for the company's components.

The datacenter segment now dominates COHR's revenue mix, reflecting the broader industry shift toward high-speed connectivity required for AI workloads. LITE and FN are also riding the datacenter wave, though supply chain tightness and inventory management remain concerns across the group.

COHR's Q4 results underscore how concentrated datacenter exposure has become a primary earnings driver for optical and networking component suppliers. The 59% year-over-year jump in datacenter and communications revenue signals sustained momentum, though the pace of future growth will hinge on hyperscaler capital expenditure cycles and component supply stability.