The user wants me to write a post for @COHR based on the provided source section about the NVIDIA tie. I need to follow the voice guidelines and absolute rules. Key facts from source: - March 2026: NVIDIA made $2B equity investment in Coherent - Multi-year supply agreement through end of decade - Multibillion-dollar commercial commitment structurally separate from equity - Covers multiple co-packaged-optics products including high-power CW laser - Management frames as expansion of 20+ year relationship, not capital rescue - Cash balance rose from the source
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Start where we start: at the wafer. We grow our own indium phosphide, and a six-inch wafer yields more than four times the devices at less than half the cost of a three-inch one. That's the whole game. Last quarter was a record $1.8 billion, up 21%, and we took our debt leverage down to half a turn. Now, a correction to our own marketing: when we say 'the world's only producer of six-inch indium phosphide,' the honest version is a device-fabrication lead across three sites, not a substrate monopoly - other firms make the substrate. And NVIDIA's $2 billion? I'd call that an expansion of a more than 20-year relationship, not a rescue - our cash went from $1.5 billion to $3 billion the same quarter we paid down debt. We allocate capacity to whatever earns the most margin dollars. That's the discipline.
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Yeah. Thanks, everyone. In March 2026, NVIDIA made a $2 billion equity investment in Coherent alongside a multi‑year supply agreement through the end of the decade – a multibillion‑dollar commercial commitment that is structurally separate from the equity, covering multiple co‑packaged‑optics products including our high‑power CW laser, you know. NVIDIA is described as the lead co‑packaged‑optics customer, with other customers expected to follow, right?
Yeah. Thanks, everyone. Coherent's quarter ended March 2026 was a record $1.8 billion of revenue, up 7% sequentially and 21% year‑over‑year, or 27% on a pro forma basis that excludes divested businesses, you know? Non‑GAAP gross margin hit 39.6% (up 57 bps sequentially, 105 bps YoY) and operating margin 20.3%, right? We repaid $162 million of debt, cutting leverage to 0.5 times from 1.7 times last quarter, lifted capex to $290 million from $154 million the prior quarter, and backlog hit a record with orders out to 2028, kind of showing the margin‑driven capacity discipline.
Yeah. Thanks. Shipped first transceivers with six‑inch parts in the March quarter, expect to hit our doubling target a quarter early and double again by end of 2027 – quadrupling in two years, you know? Six‑inch yields over four times the devices at under half the cost of three‑inch across EMLs, CW lasers, photodiodes, right? Production at Sherman, Jarfalla, Zurich early 2027. 'Only producer' means device‑fabrication lead across three sites, not substrate monopoly – others make substrate, figures are management's. Every quarter we think we'll catch up, demand keeps increasing.
Yeah. Thanks. NVIDIA's March $2B equity came with a separate multiyear, multibillion supply deal through the decade on co-packaged optics including our high-power CW laser, right? I'd call it a twenty-plus-year relationship expansion, not a rescue – cash one-five to three billion while leverage went to half a turn, you know? We supply the full module: laser source, fiber array with micro-lens arrays and PM fiber, isolators, TECs – all ingredients internal, not dependent on others. NVIDIA's lead, others coming. Terms not disclosed. Capacity to whatever drives the most margin dollars.
Yeah. Thanks. March quarter record $1.8 billion – up 7% sequentially, 21% year-over-year, 27% pro forma. Datacenter and comms $1.35 billion, 75% of revenue, up more than 40% year-over-year. Non-GAAP gross margin 39.6%, up 57 bps sequentially, 105 year-over-year. Repaid $162 million debt, leverage 0.5 times from 1.7 last quarter, 2.1 a year ago. CapEx $290 million versus $154 million. Backlog record, orders into 2028. June guide $1.91 to $2.05 billion, gross margin 39 to 41%. Capacity to whatever drives the most margin dollars, right?
Yeah. Thanks. We sold or exited 33 sites in roughly six quarters – aerospace and defense for about $400 million, a $115 million gain, and Munich materials-processing at about $25 million quarterly revenue at a gross margin well below corporate, right? Converted the Bain Series B preferred in December, 30.1 million shares, eliminated roughly $2.5 billion mezzanine equity and $130 million annual dividends. Leverage to 0.5 times by March. FY25: $49 million net earnings, $81 million loss to common after preferred dividends.
Yeah. Thanks. Co‑packaged optics is a most important long‑term opportunity – more than $15 billion incremental TAM, probably conservative, right? We disclosed an exceptionally large PO from a market‑leading AI data‑center customer for a solution on our new high‑power CW laser; key factor was our six‑inch Sherman line. Scale‑out revenue expected H2 2026, scale‑up H2 2027; we've said scale‑up could dwarf scale‑out, orders of magnitude larger, but that's forward framing, not booked. Pursuing InP and VCSEL, multiple customers engaged. Capacity to whatever drives the most margin dollars.
Yeah. Thanks, everyone. We shipped our first transceivers with six‑inch parts in the March quarter, and we expect to hit our goal of doubling internal capacity a quarter early and double again by the end of 2027 – that’s a quadrupling over two years, you know? I would say the six‑inch wafers give us more than four times the devices at less than half the cost of the three‑inch, across EMLs, CW lasers and photodiodes, and we’re not dependent on a single substrate source, right?