COHR

MKT CAP $46.4BP/E 57.5DIV YIELD —FCF YIELD -2.20%REV TTM $7.1B +22.5%NET INCOME $805M +1530.7%NET DEBT $2.1B52W 115.37 – 426.89SEC XBRL · TTM TO Invalid Date

How COHR rewrote its risk factors

10-K ITEM 1A · FY2025 → FY2026

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We listen to the voice of our people and foster open communication through an open-door policy, engagement and pulse surveys, skip-level sessions, and town hall meetings, among other methods.
As of June 30, 2026, the Company employed approximately 51,000 employees worldwide.
Number of employees Percent of total Manufacturing 45,775 89% Research and development 3,344 6% Sales, general and administrative 2,359 5% Total: 51,478 100% Globally, as of June 30, 2026, approximately 47% of the workforce are women.
Our global footprint is diverse, with approximately 44,582 employees in the Asia-Pacific region, 3,177 in Europe, and 3,719 in the Americas.
We provide our employees with upfront and ongoing training to ensure that safety policies and procedures are effectively communicated and implemented.
We have experienced employees on-site at each of our manufacturing locations who are tasked with environmental, health, safety education, and compliance.
Hiring talented individuals and continuing to develop our employees is critical to our operations.
We have a robust talent and succession-planning process that identifies internal candidates for development to build a talent funnel for our leadership pipelines.
Our leadership and development programs include skills and competency development, management and leadership development, rotational and experiential learning, mentoring and coaching, to name a few.
We provide all employees with the chance to learn and develop critical skills, and we strive to attract, motivate, develop and retain our talent.
Human Capital, Sustainability, and Corporate Responsibility Recognition: As part of our ongoing focus on human capital management, employee well-being, sustainability, and responsible business practices, the Company received several external recognitions during 2025 and 2026.
In 2025, the Company received the Top Workplaces Work-Life Flexibility Award and the Top Workplaces Employee Well-Being Award, which are based on employee survey feedback and recognize organizations for workplace practices that support employee flexibility and well-being.
In 2026, the Company was named to Forbes' America’s Best Companies 2026 list, reflecting third-party evaluation of factors including workplace culture, employee experience, leadership, and business performance.
In 2026, the Company was recognized as one of TIME’s America’s Best Companies 2026, reflecting our culture and our people.
TIME’s ranking incorporates employee feedback alongside measures of financial performance and sustainability transparency, making it a meaningful reflection of who we are and how we work together.
In China, the Company received the Mercer China Healthy Workplace Women Care Excellence Award (2026–2027), recognizing programs and initiatives that support employee health, well-being, and women's workplace experiences.
The Company also received recognition from Kununu, one of Europe's largest employer review and workplace insight platforms.
In 2026, the Company was awarded the Kununu Seal for Family Friendliness, which recognizes employers based on employee feedback regarding family-supportive workplace practices, flexibility, and work-life integration.
The Company's ratings and recognitions on employer review platforms provide an additional source of employee-generated feedback regarding workplace culture and employee experience.
While these recognitions are administered by independent third parties and utilize varying methodologies, they provide external perspectives on the Company's human capital management practices, sustainability initiatives, workplace culture, and corporate responsibility programs.
The Company continues to evaluate and invest in programs designed to support its employees, communities, and long-term business objectives.
Overall, our key differentiators are our deep technology expertise and our broad portfolio solutions, combined with our ability to deliver volume solutions at scale.
Sources of Supply In our production processes, we use certain substrates, along with numerous optical, electrical, and mechanical parts that are sourced from third-party suppliers.
These include InP substrates, ICs, DSPs, mechanical housings, and optical components, and we commonly refer to them as raw materials.
However, in the Industrial segment, we currently purchase several key components and materials used in the manufacture of our products, including exotic materials, crystals, and optics, from sole-source or limited-source suppliers.
Like with other materials, we continuously work to strengthen and diversify our supply chain, including maintaining buffer inventory and developing multiple sources of supply.
Reporting Segments and Business Units For fiscal year 2026, the Company reports its results in two reporting segments: (i) Datacenter & Communications, and (ii) Industrial.
The Datacenter & Communications segment leverages our compound semiconductor technology platforms and deep knowledge of end-user applications for its key end markets to deliver differentiated components, modules, and subsystems.
The Industrial segment’s lasers and optics products serve industrial customers in both semiconductor and display capital equipment and precision manufacturing, and instrumentation customers in life sciences and scientific instrumentation.
It is also a market leader in engineered materials and optoelectronic devices, such as those based on ZnSe, ZnS, GaAs, InP, GaSb, and SiC.
The following describes the principal products developed and marketed by each of our reportable segments.
Datacenter & Communications • Transceivers, co-packaged optics, optical circuit switches, and other systems, subsystems, modules, and semiconductor devices for datacenter and communications applications. • VCSELs, EELs, pump lasers, and other components, optics and ICs for datacenter and communication applications.
Industrial • Excimer lasers, solid-state lasers, CO 2 lasers, and laser systems for a variety of industrial applications, including semiconductor capital equipment, display manufacturing, precision manufacturing, and scientific research. • Laser systems and subsystems, including high-power lasers for materials processing. • Engineered materials, laser optics, thermoelectric components, and advanced ceramic and metal-matrix composite materials and products.
Markets For fiscal year 2026, we report revenues of our two business segments in the following markets: (i) Datacenter & Communications, and (ii) Industrial.
These markets are consistent with the realignment of our organizational structure into two reporting segments which mirror the markets that they report into.
The Company realigned its markets from its four former markets: communications, industrial, instrumentation and electronics.
Datacenter & Communications Market Group • Datacenter Market Vertical .
AI and ML are driving rapid growth in datacenter infrastructure, increasing demand for high-performance optical connectivity that enables greater bandwidth, lower latency, and improved power efficiency.
Coherent is a leading supplier of optical transceivers for AI datacenter and networking applications, offering a comprehensive, protocol-agnostic portfolio supporting Ethernet, InfiniBand, NVIDIA NVLink, and other AI networking architectures.
Our vertically integrated technology platform includes the in-house design and manufacture of transceivers and many of their critical components, including lasers, detectors, ICs, passive optics, thermal solutions, and PICs.

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We listen to the voice of the employee and foster open communication through an open-door policy and engagement surveys, among other methods.
As of June 30, 2025, the Company employed approximately 30,000 employees worldwide.
Number of employees Percent of total Manufacturing 25,210 83% Research and development 2,660 9% Sales, general and administrative 2,346 8% Total: 30,216 100% Globally, as of June 30, 2025, approximately 45% of the workforce are women.
Our global footprint is diverse, with approximately 22,340 employees in the Asia-Pacific region, 3,640 in Europe, and 4,236 in the Americas.
We provide our employees upfront and ongoing training to ensure that safety policies and procedures are effectively communicated and implemented.
We have experienced employees on-site at each of our manufacturing locations who are tasked with environmental, health, and safety education and compliance.
Hiring talented individuals and continuing to develop our employees are critical to our operations.
We have a robust succession-planning process that identifies internal candidates for development to build a talent funnel for our leadership pipelines.
We provide all employees the chance to learn and develop critical skills, and we strive to attract, motivate, and retain our talent.
Overall, our key differentiators are our deep technology expertise combined with our ability to deliver volume solutions at scale.
Sources of Supply In our production processes, we use numerous optical, electrical, and mechanical parts that are sourced from third-party suppliers.
These include ICs, DSPs, mechanical housings, and optical components, and we commonly refer to them as raw materials.
However, in the Lasers segment, we currently purchase several key components and materials used in the manufacture of our products, including exotic materials, crystals, and optics, from sole-source or limited-source suppliers.
Like with other materials, we are constantly working to strengthen and diversify our supply chain for resilience.
These strategies include maintaining additional buffer stocks and securing multiple sources to ensure resilience.
Reporting Segments and Business Units For fiscal year 2025, the Company reports its results in three reporting segments: (i) Networking, (ii) Materials, and (iii) Lasers.
The Networking segment leverages our compound semiconductor technology platforms and deep knowledge of end-user applications for its key end markets to deliver differentiated components, modules, and subsystems.
The Materials segment is a market leader in engineered materials and optoelectronic devices, such as those based on ZnSe, ZnS, GaAs, InP, GaSb, and SiC.
The Lasers segment’s lasers and optics products serve industrial customers in both semiconductor and display capital equipment and precision manufacturing, and instrumentation customers in life sciences and scientific instrumentation.
Each of these segments develops and markets key products as described below.
Networking • Transceivers, systems, subsystems, modules, components, optics, and semiconductor devices for datacenter and communications applications.
Materials • Engineered materials, laser optics, thermoelectric components, and advanced ceramic and metal-matrix composite materials and products. • VCSELs, EELs, pump lasers, high-power lasers for materials processing, and ICs.
Lasers • Excimer lasers, solid-state lasers, CO 2 lasers, and laser systems for a variety of industrial applications, including semiconductor capital equipment, display manufacturing, precision manufacturing, and scientific research. • Laser systems and subsystems.
Markets For fiscal year 2025, we report revenues of our business segments in the following markets: communications, industrial, instrumentation and electronics.
Effective July 1, 2025, for our fiscal year 2026, the Company realigned its organizational structure into two reporting segments which mirror the markets that they report into: (i) Datacenter and Communications, and (ii) Industrial.
Communications Market Group • Datacom Market Vertical .
We have been experiencing significant growth in AI and ML in the datacom market vertical.
At Coherent, we have a complete portfolio of transceivers matched to the requirements set by AI and ML.
These transceivers are protocol-agnostic, meaning the same transceiver hardware can support Ethernet and InfiniBand, as well as proprietary protocols for AI and ML such as NVIDIA’s NVLink.
Over the years, we have made strategic investments that give us a unique level of vertical integration.
We not only design and manufacture our transceivers internally, but we also design and manufacture many of the materials and components, including lasers, detectors, ICs, and passive optics.
We have in-house laser design and manufacturing capability for GaAs-based VCSELs, InP-based DMLs, EMLs, and CW lasers.
Coherent has multiple 6-inch GaAs VCSEL fabs in the U.S. and Europe.
We also have multiple InP fabs in the U.S. and Europe, and we are moving to 6-inch wafer capability.
Our portfolio also includes silicon photonics and a broad array of CPO-enabling technologies. • Telecom Market Vertical.
Coherent optical communications products and technologies enable next-generation high-speed optical transmission systems and transport networks, and datacenter solutions necessary to meet the accelerating global bandwidth demand.
We are a global technology leader in optical communications, providing materials, subcomponents, components, modules, subsystems, and systems to optical component and module manufacturers, networking equipment manufacturers, datacenter operators, enterprises, and telecom service providers.
We design products that meet the increasing demands for network bandwidth and data storage.
Our Telecom products include coherent transmission components and transceivers as well as transport products such as 980 nm and 14xx pump lasers, erbium-doped fiber amplifiers, passive components, OCM, OTDR, ROADM and Optical line systems.
Our proven experience in both transmission and transport allows us to effectively address the emerging DCI market.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2025 ↗, FY2026 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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