customerScore 75/100Add to thesis
Coherent: record backlog booked through calendar 2028; LTAs with take-or-pay commitments to 2030
“Fiscal 27 is basically completely booked out... customers now booking into calendar 28... long-term agreements... extending out through the end of the decade... they also have sort of minimum demand guarantees from our customers or sometimes you refer to those as take-or-pay agreements.”
Why it matters
Multi-year purchase orders and take-or-pay LTAs with agreed pricing give Coherent unusually high-quality revenue visibility, underpinning the >$3B quarterly revenue target by end of fiscal 2027.
Investment implication
Reduces demand risk and validates the durability of AI optical networking capex; bullish for COHR and evidence that hyperscaler optical connectivity demand is contracted, not speculative.