Coherent Corp. (COHR), a global photonics company, reported first-quarter fiscal 2027 revenue of $2.37 billion, up 50% from a year earlier and 56% on a pro forma basis, accelerating from 34% year-over-year growth in the prior quarter.

The sequential increase was 15.9%, faster than the 13.3% sequential gain in the fourth quarter of fiscal 2026. Chief executive Jim Anderson said the quarter marked a strong start to fiscal 2027, with established businesses growing and new growth areas beginning to ramp. He said the company expects fiscal 2027 pro forma revenue growth to exceed 60%.

GAAP gross margin was 39.1%, up 254 basis points from a year earlier. Non-GAAP gross margin was 40.6%. Chief financial officer Sherri Luther said the results delivered substantial operating leverage and durable gross margin expansion, driven by pricing optimization and cost improvements. She said the company expects to achieve its first quarter with non-GAAP gross margin above 45% before the end of calendar 2028.

GAAP diluted earnings were $1.90 a share, up $0.71 from a year earlier. Non-GAAP diluted earnings were $2.09 a share, up $0.93 year over year. GAAP operating income was $378 million, with operating margin of 15.9%. Non-GAAP operating income was $550 million, and non-GAAP operating margin was 23.2%.

Datacenter & Communications, the larger reportable segment, generated $1,951.7 million in revenue, compared with $1,615.0 million in the prior quarter and $1,090.0 million a year earlier. Industrial revenue was $418.6 million, down from $430.5 million sequentially and $491.4 million a year earlier.

Anderson said that as AI datacenters transition from copper to optical connectivity, Coherent’s photonics platform and manufacturing scale position it to help customers meet rising needs for bandwidth and energy efficiency.

For the second quarter of fiscal 2027, the company expects revenue of $2.55 billion to $2.75 billion, non-GAAP gross margin of 40% to 42%, non-GAAP operating expenses of $430 million to $450 million, a non-GAAP tax rate of 18% to 20%, and non-GAAP earnings of $2.28 to $2.48 a share.

It also said it expects a first $3 billion revenue quarter by the end of fiscal 2027 and a first $4 billion revenue quarter in fiscal 2028. The company said fiscal 2027 pro forma revenue growth is expected to exceed 60%, more than double its fiscal 2026 pro forma growth rate.

Cash used in operations was $92.7 million in the three months ended September 30, 2026, versus cash provided of $46.0 million a year earlier. Additions to property, plant and equipment were $775.5 million, versus $103.9 million a year earlier. Cash and cash equivalents were $1,552.9 million at September 30, 2026.

Luther tied the new longer-term gross-margin target to the operating leverage already visible in the quarter, as the company pointed to a path toward a $3 billion quarter before fiscal 2027 ends and a $4 billion quarter in fiscal 2028.