Coherent Corp.

Greetings, and welcome to the Coherent fourth quarter and fiscal year 2026 earnings call. It is now my pleasure to introduce your host, Mr. Paul Silverstein, Senior Vice President of Investor Relations for Coherent. Please go ahead.

Thank you, Operator, and good afternoon, everyone. With me today are Jim Anderson, Coherent CEO, and Sherri Luther, Coherent CFO. During today's call, we will provide a financial and business review of the fourth quarter of fiscal 2026 and and the business outlook for the first quarter of fiscal 2027. Our earnings press release can be found in the investor relations section of our company website at coherent.com. I would like to remind everyone that during our conference call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. These are subject to a number of significant risks and uncertainties, and our actual results may differ materially. For a discussion of factors that could affect our future financial results in business, Please refer to the disclosure in today's earnings release, our most recent forms 10-K and 10-Q, and the reports that we may file in Form 8-K with the Securities and Exchange Commission. All our statements are made as of today, August 12, 2026, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During this call, we will discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our earnings release and investor presentation that can be found on the investor relations section of our website at coherent.com. Let me now turn the call over to our CEO, Jim Anderson.

Thank you, Paul, and thank you, everyone, for joining today's call. Fiscal 2026 was an outstanding year for Coherent. On a pro forma basis, revenue increased 28%, to a record $7 billion. Our revenue growth combined with gross margin expansion and continued operating leverage drove non-GAAP EPS growth of approximately 59%, more than twice the rate of revenue growth. We also finished the year with significant momentum. In Q4, our pro forma revenue growth rate accelerated significantly with revenue increasing 14% sequentially and 42% year-over-year, while non-GAAP EPS increased 74% year-over-year. Our accelerated growth rate reflects the exceptional demand environment and our continued rapid expansion of production capacity. While we're very pleased with our fiscal 2026 performance, we are even more excited about the year ahead. We expect our growth to accelerate significantly in fiscal 27. Having achieved our first $2 billion revenue quarter, we now expect to achieve our first quarter with over $3 billion of revenue by the end of fiscal 27. Coherent is a global leader in photonic technology. Our broad photonic technology platform is foundational to the performance and scalability of AI data centers.