customerScore 60/100Add to thesis
Coherent Datacenter & Communications segment drove 59% revenue YoY growth (Q4 FY26); now 79% of total revenue.
“Datacenter & Communications segment... $1,615.0 [Q4 FY26] vs. $1,018.3 [Q4 FY25]... 59% [YoY growth]... Revenue Mix Reflects Rapid Growth of Datacenter & Communications Segment”
Why it matters
Coherent's explosive datacenter growth (59% YoY) and rising mix (79% of revenue) confirms hyperscaler capex acceleration for AI infrastructure, particularly optical interconnect. This is direct evidence of demand from hyperscalers for next-gen datacenter connectivity.
Investment implication
Coherent benefits from a secular shift toward optical switching and interconnect in AI datacenters, likely driven by NVIDIA-scale GPU deployments. Competitors and adjacent suppliers in optics and cooling should see similar tailwinds.