Coherent Corp.

“•We depend on highly complex manufacturing processes that require strategic materials, components, and products from limited sources of supply. •Increases in commodity prices and diminished availability of rare earth minerals and noble gases may adversely affect our results of operations and financial condition. •We purchase a significant amount of the materials and components used in our products from a limited number of suppliers. •Cybersecurity attacks and incidents and other vulnerabilities could subject us to costly damages, claims and expenses, harm to our reputation or competitive position, or disrupt our operations and business. •We may be adversely impacted by any of the multiple uncertainties and outcomes associated with the use and evolution of AI. •Natural disasters or other global or regional catastrophic events could disrupt our operations, give rise to substantial environmental hazards, and adversely affect our results.”

Annual report 2026A · The company itself

“InP is a foundational technology for next-generation AI optical interconnects.”

Annual report 2026A · The company itself

“A portion of the recent demand for our products has been driven by the rapid expansion of artificial intelligence (“AI”) and data center infrastructure. The semiconductor and photonics industries have experienced a significant upturn driven by the adoption and proliferation of AI, which may not be sustainable.”

Annual report 2026A · The company itself

“Furthermore, the AI industry is rapidly evolving, with continuous improvements in algorithms, software efficiencies and hardware capabilities. Emerging AI technologies, such as those demonstrated by DeepSeek, may allow for complex AI operations to be executed with significantly less computing power than is currently required. This reduction in computational intensity could decrease the demand for services provided by AI datacenters that are our customers.”

Annual report 2026A · The company itself

“We are increasingly incorporating AI capabilities into the development of technologies and our business operations, and into our products and services. AI technology is complex and rapidly evolving, and may expose us to significant competitive, legal, regulatory, and other risks. The implementation of AI can be costly and there is no guarantee that our use of AI will enhance our technologies, benefit our business operations, or produce products and services that are preferred by our customers.”

Annual report 2026A · The company itself

“For example, increasing geopolitical tensions could result in new export controls associated with products that support or enable AI or data center infrastructure applications which could, in turn, restrict future sales of certain products to certain markets in which we operate.”

Annual report 2026A · The company itself

“Research and Development During the fiscal year ended June 30, 2026, we continued to invest in and focus our R&D efforts on new products and platform technologies to support the Company’s long-term growth. Table of Contents We devote significant resources to R&D programs focused on the continuous improvement of our existing products and processes, as well as the development of new materials, technologies, platforms, and products.”

Annual report 2026A · The company itself

“During fiscal 2026, we announced the expansion of our Sherman, Texas, manufacturing facility, entered into a strategic multi-year supply agreement with NVIDIA for advanced lasers and optical networking products supporting next-generation AI infrastructure, and received a $50 million preliminary memorandum of terms under the CHIPS and Science Act to support the Sherman expansion.”

Annual report 2026A · The company itself

“Our Strategy Our strategy is to grow businesses with world-class lasers, optics, and engineered materials to advance our current customers’ strategies, reach new markets through innovative technologies and platforms, and enable new applications in large and growing markets.”

Annual report 2026A · The company itself

“Optical circuit switch (OCS) Develop the OCS product family for AI/ML and hyperscale datacenters based on our digital liquid-crystal technology.”

Annual report 2026A · The company itself

“Risks Related to Our Business, Operations and Industry Our competitive position depends on our ability to develop new products and processes and may require significant investment. To meet our strategic objectives, we must develop, manufacture, and market new products and continue to update our existing products and processes to keep pace with sudden increases and decreases in market demand and other market developments and to address increasingly sophisticated customer requirements in rapidly evolving technologies. Our success in developing and selling new and enhanced products and processes depends upon a variety of factors, including strategic product selection, efficient completion of product design and development, timely implementation of manufacturing and assembly processes, effective sales and marketing, and high-quality and successful product performance in the market.”

Annual report 2026A · The company itself

“The increase in segment profit for fiscal 2026 was primarily driven by higher revenues, partially offset by increased R&D investments to support expansion of our product portfolio.”

Annual report 2026A · The company itself

“Datacenter & Communications ($ in millions) Year Ended June 30, % Increase 2026 2025 Revenues $ 5,275 $ 3,755 40 % Segment profit $ 1,330 $ 904 47 % Revenues for the year ended June 30, 2026 for Datacenter & Communications increased 40% to $5,275 million, compared to $3,755 million last fiscal year. The increase in revenues of $1,519 million during fiscal 2026 was primarily driven by growth in our Datacenter business reflecting continued strong AI datacenter demand, driven primarily by transceivers, as well as higher Communications business volumes due to increased demand for datacenter interconnect, scale across and traditional telecom applications.”

Annual report 2026A · The company itself

“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.”

Annual report 2026A · The company itself

“Our business is dependent on the demand for products produced by end-users of communications, industrial, instrumentation and electronics markets. Many of these end-users are in industries that have historically experienced a highly cyclical demand for their products.”

Annual report 2026A · The company itself

“InP is a foundational technology for next-generation AI optical interconnects.”

Annual report 2026A · The company itself

“A portion of the recent demand for our products has been driven by the rapid expansion of artificial intelligence (“AI”) and data center infrastructure. The semiconductor and photonics industries have experienced a significant upturn driven by the adoption and proliferation of AI, which may not be sustainable.”

Annual report 2026A · The company itself

“For example, increasing geopolitical tensions could result in new export controls associated with products that support or enable AI or data center infrastructure applications which could, in turn, restrict future sales of certain products to certain markets in which we operate.”

Annual report 2026A · The company itself

“Datacom transceivers and components for datacom transceivers 800G/1.6T transceivers, CPO, VCSELs, EMLs, silicon photonics, ICs, isolators, and thermoelectric coolers; 400G/lane components supporting 3.2T and 6.4T.”

Annual report 2026A · The company itself

“Optical circuit switch (OCS) Develop the OCS product family for AI/ML and hyperscale datacenters based on our digital liquid-crystal technology.”

Annual report 2026A · The company itself

“(“Coherent,” the “Company,” “we,” “us,” or “our”), is a vertically integrated manufacturing company that develops, manufactures, and markets lasers, transceivers, and other optical and optoelectronic devices, modules, and systems, as well as engineered materials, for use in the data center, communications and industrial markets.”

Annual report 2026A · The company itself

“General Description of Business Coherent develops, manufactures, and markets lasers, transceivers, and other optical and optoelectronic devices, modules, and systems, as well as engineered materials, for use in datacenter & communications, as well as industrial applications, including precision manufacturing, energy, semiconductor & display capital equipment, and instrumentation.”

Annual report 2026A · The company itself

“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.”

Annual report 2026A · The company itself

“Datacenter & Communications ($ in millions) Year Ended June 30, % Increase 2026 2025 Revenues $ 5,275 $ 3,755 40 % Segment profit $ 1,330 $ 904 47 % Revenues for the year ended June 30, 2026 for Datacenter & Communications increased 40% to $5,275 million, compared to $3,755 million last fiscal year. The increase in revenues of $1,519 million during fiscal 2026 was primarily driven by growth in our Datacenter business reflecting continued strong AI datacenter demand, driven primarily by transceivers, as well as higher Communications business volumes due to increased demand for datacenter interconnect, scale across and traditional telecom applications.”

Annual report 2026A · The company itself

“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.”

Annual report 2026A · The company itself

“Our business is dependent on the demand for products produced by end-users of communications, industrial, instrumentation and electronics markets. Many of these end-users are in industries that have historically experienced a highly cyclical demand for their products.”

Annual report 2026A · The company itself

“In addition, the U.S. government has initiated investigations under Section 232 of the Trade Expansion Act of 1962 to evaluate whether additional tariffs may be necessary on certain commodities, including semiconductors, critical minerals, and derivative electronics products, on national-security grounds, and upon completion of these investigations the President may direct the imposition of additional tariffs on these or other commodities.”

Annual report 2026A · The company itself

“In the markets we serve, there is a limited number of high-quality suppliers of many of the components we manufacture. Aside from datacenter transceivers, there are very few industry-standard products.”

Annual report 2026A · The company itself

“Table of Contents 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.”

Annual report 2026A · The company itself

“We depend on highly complex manufacturing processes that require strategic materials, components, and products from limited sources of supply. Our operations are dependent upon a supply chain of difficult-to-make or difficult-to-refine products and materials, including integrated circuits, mechanical housings and optical components, and some of our product inflow is subject to yield reductions from growth or fabrication losses, and thus the quantities we may receive are not consistently predictable.”

Annual report 2026A · The company itself

“We purchase a significant amount of the materials and components used in our products from a limited number of suppliers. Our manufacturing processes and those of our contract manufacturers rely on many materials, including precious and rare earth metals, indium phosphide (“InP”) and certain lasers and laser components that may be difficult to source, may only be available from a single or limited number of suppliers.”

Annual report 2026A · The company itself

“General Description of Business Coherent develops, manufactures, and markets lasers, transceivers, and other optical and optoelectronic devices, modules, and systems, as well as engineered materials, for use in datacenter & communications, as well as industrial applications, including precision manufacturing, energy, semiconductor & display capital equipment, and instrumentation.”

Annual report 2026A · The company itself

“Industrial •Excimer lasers, solid-state lasers, CO2 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.”

Annual report 2026A · The company itself

“Semiconductor capital equipment requires advanced materials to meet the need for tighter tolerances, enhanced thermal stability, faster wafer transfer speeds, and reduced stage settling times.”

Annual report 2026A · The company itself

“Our excimer laser-based annealing systems can improve accuracy, combining high-spatial precision and selectivity for LTPS OLED display production.”

Annual report 2026A · The company itself

“Our business is dependent on the demand for products produced by end-users of communications, industrial, instrumentation and electronics markets. Many of these end-users are in industries that have historically experienced a highly cyclical demand for their products.”

Annual report 2026A · The company itself

“The decrease in revenues during fiscal 2025 was primarily related to weak automotive and Silicon Carbide end market demand and macroeconomic conditions in the industrial segment, partially offset by $73 million higher shipments of laser systems in our display capital equipment market.”

Annual report 2026A · The company itself

“Industrial Area of Development: Our R&D Investments: Diode-pumped solid-state lasers Continue to develop solid-state lasers for industrial applications for materials processing, instrumentation, and scientific applications.”

Annual report 2026A · The company itself

“The increase was primarily driven by the divestitures of our aerospace and defense business as well as the Munich, Germany business in addition to pricing optimization initiatives and lower manufacturing costs.”

Annual report 2026A · The company itself

“(“Coherent,” the “Company,” “we,” “us,” or “our”), is a vertically integrated manufacturing company that develops, manufactures, and markets lasers, transceivers, and other optical and optoelectronic devices, modules, and systems, as well as engineered materials, for use in the data center, communications and industrial markets.”

Annual report 2026A · The company itself

“Industrial •Excimer lasers, solid-state lasers, CO2 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.”

Annual report 2026A · The company itself

“Industrial ($ in millions) Year Ended June 30, % Increase (Decrease) 2026 2025 Revenues $ 1,844 $ 2,055 (10) % Segment profit $ 423 $ 407 4 % Revenues for the fiscal year ended June 30, 2026 for Industrial decreased 10% to $1,844 million, compared to revenues of $2,055 million last fiscal year. The decrease in revenues during the current fiscal year was primarily attributable to the divestitures of our aerospace and defense business on September 2, 2025 and our Munich, Germany business on January 30, 2026.”

Annual report 2026A · The company itself

“With complete verticality, from materials to laser solutions, we intersect with any industrial laser process within the application areas of medical device manufacturing, machine tools, consumer goods, and industrial electrical and electronics.”

Annual report 2026A · The company itself

“(“Coherent,” the “Company,” “we,” “us,” or “our”), is a vertically integrated manufacturing company that develops, manufactures, and markets lasers, transceivers, and other optical and optoelectronic devices, modules, and systems, as well as engineered materials, for use in the data center, communications and industrial markets.”

Annual report 2026A · The company itself

“The increase in revenues of $1,519 million during fiscal 2026 was primarily driven by growth in our Datacenter business reflecting continued strong AI datacenter demand, driven primarily by transceivers, as well as higher Communications business volumes due to increased demand for datacenter interconnect, scale across and traditional telecom applications.”

Annual report 2026A · The company itself

“We develop optical communications technologies that enable high-speed transmission systems, transport networks, and datacenter connectivity supporting the growing bandwidth demands of AI, cloud computing, and next-generation communications networks.”

Annual report 2026A · The company itself

“These substrates are utilized by customers worldwide not only to manufacture GaN-on-SiC HEMT RF power amplifier devices that are embedded in remote radio heads in 4G, 5G, and 6G wireless base stations.”

Annual report 2026A · The company itself

“We also purchase assemblies and turnkey solutions from contract manufacturers, based on our proprietary designs.”

Annual report 2026A · The company itself

“We also utilize contract manufacturers and strategic suppliers.”

Annual report 2026A · The company itself

“The decrease in revenues during fiscal 2025 was primarily related to weak automotive and Silicon Carbide end market demand and macroeconomic conditions in the industrial segment, partially offset by $73 million higher shipments of laser systems in our display capital equipment market.”

Annual report 2026A · The company itself

“Applications within the biotechnology segment include research and diagnostic tools such as flow cytometry, genome sequencing, and PCR, to name a few.”

Annual report 2026A · The company itself

“General Description of Business Coherent develops, manufactures, and markets lasers, transceivers, and other optical and optoelectronic devices, modules, and systems, as well as engineered materials, for use in datacenter & communications, as well as industrial applications, including precision manufacturing, energy, semiconductor & display capital equipment, and instrumentation.”

Annual report 2026A · The company itself

“We do business with a number of customers in the aerospace and defense industry, who in turn generally contract with a governmental entity.”

Annual report 2026A · The company itself

“With complete verticality, from materials to laser solutions, we intersect with any industrial laser process within the application areas of medical device manufacturing, machine tools, consumer goods, and industrial electrical and electronics.”

Annual report 2026A · The company itself

“We manufacture GaAs VCSELs and VCSEL arrays, InP edge-emitting lasers and photodiodes, and specialty glass wafers for the consumer electronics market.”

Annual report 2026A · The company itself

“During fiscal 2026, we announced the expansion of our Sherman, Texas, manufacturing facility, entered into a strategic multi-year supply agreement with NVIDIA for advanced lasers and optical networking products supporting next-generation AI infrastructure, and received a $50 million preliminary memorandum of terms under the CHIPS and Science Act to support the Sherman expansion.”

Annual report 2026A · The company itself

“•We depend on highly complex manufacturing processes that require strategic materials, components, and products from limited sources of supply. •Increases in commodity prices and diminished availability of rare earth minerals and noble gases may adversely affect our results of operations and financial condition. •We purchase a significant amount of the materials and components used in our products from a limited number of suppliers. •Cybersecurity attacks and incidents and other vulnerabilities could subject us to costly damages, claims and expenses, harm to our reputation or competitive position, or disrupt our operations and business. •We may be adversely impacted by any of the multiple uncertainties and outcomes associated with the use and evolution of AI. •Natural disasters or other global or regional catastrophic events could disrupt our operations, give rise to substantial environmental hazards, and adversely affect our results.”

Annual report 2026A · The company itself

“Although rare earth and other materials are generally available from multiple suppliers, China is the predominant producer of certain of these materials. In 2024, China imposed export restrictions on certain rare earth minerals such as yttrium and germanium, which disrupted and may continue to disrupt global supply chains, driving up costs.”

Annual report 2026A · The company itself

“In addition, the U.S. government has initiated investigations under Section 232 of the Trade Expansion Act of 1962 to evaluate whether additional tariffs may be necessary on certain commodities, including semiconductors, critical minerals, and derivative electronics products, on national-security grounds, and upon completion of these investigations the President may direct the imposition of additional tariffs on these or other commodities.”

Annual report 2026A · The company itself

“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.”

Annual report 2026A · The company itself

“We use rare-earth materials in some of our production processes.”

Annual report 2026A · The company itself

“We use rare earth minerals and produce and use high-purity and relatively uncommon materials and compounds to manufacture our products, including, but not limited to, ZnS, GaAs, yttrium aluminum garnet, yttrium lithium fluoride, calcium fluoride, germanium, selenium, telluride, Bi2Te3, and SiC.”

Annual report 2026A · The company itself

“Increases in commodity prices and diminished availability of rare earth minerals and noble gases may adversely affect our results of operations and financial condition. We are exposed to a variety of market risks, including the effects of increases in commodity prices and diminished availability of rare earth minerals and noble gases.”

Annual report 2026A · The company itself

“We purchase a significant amount of the materials and components used in our products from a limited number of suppliers. Our manufacturing processes and those of our contract manufacturers rely on many materials, including precious and rare earth metals, indium phosphide (“InP”) and certain lasers and laser components that may be difficult to source, may only be available from a single or limited number of suppliers.”

Annual report 2026A · The company itself

“Although rare earth and other materials are generally available from multiple suppliers, China is the predominant producer of certain of these materials. In 2024, China imposed export restrictions on certain rare earth minerals such as yttrium and germanium, which disrupted and may continue to disrupt global supply chains, driving up costs.”

Annual report 2026A · The company itself

“We operate globally and sell or plan to sell our products in countries throughout the world. Significant political, trade, or regulatory developments in the jurisdictions in which we sell our products, such as those stemming from the change in the U.S. federal administration, are difficult to predict and may have a material adverse effect on us, including increasing our manufacturing costs, making our products less competitive, reducing demand for our products, limiting our ability to sell to certain customers or markets, limiting our ability to procure, or increasing our costs for, components or raw materials, impeding or slowing the movement of our goods across borders, impeding our ability to perform R&D activities, or otherwise restricting our ability to conduct operations.”

Annual report 2026A · The company itself

“Geopolitical volatility and military conflicts, such as those in the Middle East and Ukraine, may also result in a global economic slowdown and long-term changes to global trade that could make it more difficult to sell our products in, or restrict our access to, some markets and/or customers.”

Annual report 2026A · The company itself

“Furthermore, our supply chains concentrated in certain geographic regions, and worldwide geopolitical tensions and conflicts could result in changing regulatory requirements, supply disruptions, and reduced access to global markets that could materially and adversely affect our operations, product demand, and profitability.”

Annual report 2026A · The company itself

“In addition, many of our products are sourced from suppliers based outside of the United States, primarily in Asia. Major developments in tax policy or trade relations, such as the imposition of tariffs on imported products, could increase our product and product-related costs or require us to seek alternative suppliers, either of which could result in decreased sales or increased product and product-related costs.”

Annual report 2026A · The company itself

“For example, in early 2025, the United States implemented significant new tariffs on foreign imports impacting multiple countries, commodities and industries, and those new tariffs and export restrictions also prompted retaliatory tariffs and export restrictions from certain countries. A number of these tariffs remain in effect, including significant tariffs and trade sanctions between the United States and China.”

Annual report 2026A · The company itself

“We operate globally and sell or plan to sell our products in countries throughout the world. Significant political, trade, or regulatory developments in the jurisdictions in which we sell our products, such as those stemming from the change in the U.S. federal administration, are difficult to predict and may have a material adverse effect on us, including increasing our manufacturing costs, making our products less competitive, reducing demand for our products, limiting our ability to sell to certain customers or markets, limiting our ability to procure, or increasing our costs for, components or raw materials, impeding or slowing the movement of our goods across borders, impeding our ability to perform R&D activities, or otherwise restricting our ability to conduct operations.”

Annual report 2026A · The company itself

“Risks Related to Capitalization and Financial Markets •Foreign currency risk may negatively affect our revenues, cost of sales, and operating margins, and could result in foreign exchange losses.”

Annual report 2026A · The company itself

“We conduct our business and incur costs in the local currency of most countries in which we operate. We incur currency transaction risk whenever one of our operating subsidiaries enters into either a purchase or a sales transaction using a different currency from the currency in which it operates, or holds assets or liabilities in a currency different from its functional currency. Changes in exchange rates can also affect our results of operations when the value of sales and expenses of foreign subsidiaries are translated to U.S. dollars. We cannot accurately predict the impact of future exchange rate fluctuations on our results of operations.”

Annual report 2026A · The company itself

“For example, increasing geopolitical tensions could result in new export controls associated with products that support or enable AI or data center infrastructure applications which could, in turn, restrict future sales of certain products to certain markets in which we operate.”

Annual report 2026A · The company itself

“Department of Commerce (“BIS”) has issued final rules under the EAR that restrict access by Huawei Technologies Co. Ltd. and certain of its affiliates (collectively, “Huawei”) to items produced domestically and abroad from certain U.S. technology, software, and equipment. These rules prevent us from selling certain products subject to the EAR to identified Huawei entities without a license issued by BIS.”

Annual report 2026A · The company itself

“•We depend on highly complex manufacturing processes that require strategic materials, components, and products from limited sources of supply. •Increases in commodity prices and diminished availability of rare earth minerals and noble gases may adversely affect our results of operations and financial condition. •We purchase a significant amount of the materials and components used in our products from a limited number of suppliers. •Cybersecurity attacks and incidents and other vulnerabilities could subject us to costly damages, claims and expenses, harm to our reputation or competitive position, or disrupt our operations and business. •We may be adversely impacted by any of the multiple uncertainties and outcomes associated with the use and evolution of AI. •Natural disasters or other global or regional catastrophic events could disrupt our operations, give rise to substantial environmental hazards, and adversely affect our results.”

Annual report 2026A · The company itself

“We have a substantial amount of debt, which could adversely affect our business, financial condition, or results of operations and prevent us from fulfilling our debt-related obligations. As of June 30, 2026, we had approximately $3.2 billion of outstanding indebtedness on a consolidated basis, including under (i) our $1.1 billion senior secured incremental term A loan facility (the “Term Loan A Facility”), (ii) our approximately $1.1 billion senior secured term loan B facility (the “Term Loan B Facility”, and together with the Term Loan A Facility, the “Senior Credit Facilities”) and (iii) our $990 million 5.000% senior notes due 2029 (the “2029 Notes”).”

Annual report 2026A · The company itself

“Risks Related to Our Business, Operations and Industry •Our competitive position depends on our ability to develop new products and processes and may require significant investment. •A significant portion of our business is subject to cyclical market factors and we may fail to accurately estimate the size and growth rate of our markets and our customers’ demands. •We contract with a number of large end-user service providers and product companies that have considerable bargaining power, which may require us to agree to terms and conditions that could have an adverse effect on our 3 Table of Contents business or ability to recognize revenues.”

Annual report 2026A · The company itself

“•Products that fail to meet specifications, are defective, or are otherwise incompatible with end uses could impose significant costs on us. •Our reliance on contract manufacturers, and any failure to qualify or requalify our own or our subcontractors’ manufacturing lines for volume production, could adversely affect our ability to meet customer demand and harm our business, results of operations, and financial condition. •We may encounter increased competition, and we may fail to accurately estimate our competitors’ or our customers’ willingness and capability to backward integrate into our competencies and thereby displace us. •We may not be able to achieve expected returns from strategic investments, including capacity expansions. •Global economic downturns may adversely affect our business, results of operations, and financial condition.”

Annual report 2026A · The company itself

“The decrease in revenues during fiscal 2025 was primarily related to weak automotive and Silicon Carbide end market demand and macroeconomic conditions in the industrial segment, partially offset by $73 million higher shipments of laser systems in our display capital equipment market.”

Annual report 2026A · The company itself

“•We depend on highly complex manufacturing processes that require strategic materials, components, and products from limited sources of supply. •Increases in commodity prices and diminished availability of rare earth minerals and noble gases may adversely affect our results of operations and financial condition. •We purchase a significant amount of the materials and components used in our products from a limited number of suppliers. •Cybersecurity attacks and incidents and other vulnerabilities could subject us to costly damages, claims and expenses, harm to our reputation or competitive position, or disrupt our operations and business. •We may be adversely impacted by any of the multiple uncertainties and outcomes associated with the use and evolution of AI. •Natural disasters or other global or regional catastrophic events could disrupt our operations, give rise to substantial environmental hazards, and adversely affect our results.”

Annual report 2026A · The company itself

“We have manufacturing and other operations in locations subject to natural occurrences and possible climate changes, such as severe and variable weather and geological events resulting in increased costs, or disruptions to our manufacturing operations or those of our suppliers or customers. In addition, climate change may pose physical risks to our manufacturing facilities or our suppliers’ facilities, including increased extreme weather events that could result in supply delays or disruptions.”

Annual report 2026A · The company itself

“Cybersecurity attacks and incidents and other vulnerabilities could subject us to costly damages, claims and expenses, harm to our reputation or competitive position, or disrupt our operations and business. We depend on secure information technology for our business and are exposed to risks related to cybersecurity threats and other cyber incidents affecting our operations, facilities, systems and networks, and those of our customers, suppliers and service providers, and other third parties.”

Annual report 2026A · The company itself

“New and evolving laws and regulations relating to cybersecurity, data privacy, and AI impose requirements for information confidentiality, integrity, availability, personal and proprietary data collection, storage, use, sharing, deletion, and AI solutions that must be safe, transparent, fair, secure, human-focused, and accountable. Such laws, standards, and market expectations could cause us to incur additional direct costs for compliance, as well as increased indirect costs resulting from our customers, suppliers, or partners reluctance to share information or solutions due to actual or perceived inadequate controls.”

Annual report 2026A · The company itself

“New and evolving laws and regulations relating to cybersecurity, data privacy, and AI impose requirements for information confidentiality, integrity, availability, personal and proprietary data collection, storage, use, sharing, deletion, and AI solutions that must be safe, transparent, fair, secure, human-focused, and accountable. Such laws, standards, and market expectations could cause us to incur additional direct costs for compliance, as well as increased indirect costs resulting from our customers, suppliers, or partners reluctance to share information or solutions due to actual or perceived inadequate controls.”

Annual report 2026A · The company itself

“Our markets are characterized by extensive research and development, rapid technological change, frequent new product introductions, changes in customer requirements and evolving industry standards. The nature of these markets requires significant research and development expenses to participate, with substantial resources invested in advance of material sales of our products to our customers.”

Annual report 2026A · The company itself

“New and evolving environmental health, safety, and product considerations, including those related to greenhouse gas emissions and climate change, the purchase, use and disposal of regulated and/or hazardous chemicals, and the potential resulting environmental, health or safety impacts, may result in new laws, regulations, or industry standards that may affect us, our suppliers, and our customers. Such laws, regulations, or industry standards could cause us to incur additional direct costs for compliance, as well as increased indirect costs resulting from our customers, suppliers, or both incurring additional compliance costs that are passed on to us.”

Annual report 2026A · The company itself

“The manufacture of our products requires the use of facilities, equipment, chemicals, and materials that are subject to a broad array of laws and regulations in numerous jurisdictions in which we operate. Additionally, we are subject to a variety of other laws and regulations relative to the maintenance and operations of our facilities. Any changes in laws, regulations, or industry 26 Table of Contents standards could cause us to incur additional direct costs, as well as increased indirect costs related to our relationships with our customers and suppliers, and otherwise harm our operations and financial condition.”

Annual report 2026A · The company itself

“To the extent our customers have elevated inventory levels or are impacted by deterioration in credit markets, we may experience a decrease in short-term and/or long-term demand resulting in industry oversupply and declines in pricing for our products.”

Annual report 2026A · The company itself

“Our markets are characterized by extensive research and development, rapid technological change, frequent new product introductions, changes in customer requirements and evolving industry standards. The nature of these markets requires significant research and development expenses to participate, with substantial resources invested in advance of material sales of our products to our customers.”

Annual report 2026A · The company itself

“Additionally, AI datacenters require access to clean water and predictable sources of energy. Any shortages of these resources or regulations limiting energy, water, or land availability could decrease development and growth of our AI datacenter customers and, in turn, negatively impact our business.”

Annual report 2026A · The company itself

“Uncertainty in the financial markets may negatively impact our ability to access additional financing or to refinance our existing 29 Table of Contents debt arrangements on favorable terms or at all, which could negatively affect our ability to fund current and future expansion as well as future acquisitions and development. These disruptions may include turmoil in the financial services industry, volatility in the markets where our outstanding securities trade, and changes in general economic conditions in the areas where we do business.”

Annual report 2026A · The company itself

“New and evolving environmental health, safety, and product considerations, including those related to greenhouse gas emissions and climate change, the purchase, use and disposal of regulated and/or hazardous chemicals, and the potential resulting environmental, health or safety impacts, may result in new laws, regulations, or industry standards that may affect us, our suppliers, and our customers. Such laws, regulations, or industry standards could cause us to incur additional direct costs for compliance, as well as increased indirect costs resulting from our customers, suppliers, or both incurring additional compliance costs that are passed on to us.”

Annual report 2026A · The company itself

“•We depend on highly complex manufacturing processes that require strategic materials, components, and products from limited sources of supply. •Increases in commodity prices and diminished availability of rare earth minerals and noble gases may adversely affect our results of operations and financial condition. •We purchase a significant amount of the materials and components used in our products from a limited number of suppliers. •Cybersecurity attacks and incidents and other vulnerabilities could subject us to costly damages, claims and expenses, harm to our reputation or competitive position, or disrupt our operations and business. •We may be adversely impacted by any of the multiple uncertainties and outcomes associated with the use and evolution of AI. •Natural disasters or other global or regional catastrophic events could disrupt our operations, give rise to substantial environmental hazards, and adversely affect our results.”

Annual report 2026A · The company itself

“We may be required to obtain licenses under such patents, and there can be no assurance that we would be able to obtain such licenses, if required, on commercially reasonable terms, or that claims regarding rights to technology will not be asserted that may adversely affect our results of operations.”

Annual report 2026A · The company itself

“Any loss, cancellation, reduction, or delay in purchases by these large customers could harm the longevity of our business.”

Annual report 2026A · The company itself

“Risks Related to Capitalization and Financial Markets •Foreign currency risk may negatively affect our revenues, cost of sales, and operating margins, and could result in foreign exchange losses.”

Annual report 2026A · The company itself

“Additionally, AI datacenters require access to clean water and predictable sources of energy. Any shortages of these resources or regulations limiting energy, water, or land availability could decrease development and growth of our AI datacenter customers and, in turn, negatively impact our business.”

Annual report 2026A · The company itself

“Our principal U.S. production and R&D operations, in alphabetical order, are located in California, Connecticut, Delaware, New Jersey, Pennsylvania, and Texas. Our principal non-U.S. production and R&D operations, in alphabetical order, are based in China, Finland, Germany, Malaysia, the Philippines, Singapore, South Korea, Sweden, Switzerland, the United Kingdom, and Vietnam.”

Annual report 2026A · The company itself

“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.”

Annual report 2026A · The company itself

“We and our subcontractors maintain operations and continuously implement new product and process technologies at manufacturing facilities, which are widely dispersed in multiple locations in several countries including the United States, Germany, Malaysia, and China.”

Annual report 2026A · The company itself

“Our principal U.S. production and R&D operations, in alphabetical order, are located in California, Connecticut, Delaware, New Jersey, Pennsylvania, and Texas. Our principal non-U.S. production and R&D operations, in alphabetical order, are based in China, Finland, Germany, Malaysia, the Philippines, Singapore, South Korea, Sweden, Switzerland, the United Kingdom, and Vietnam.”

Annual report 2026A · The company itself

“We and our subcontractors maintain operations and continuously implement new product and process technologies at manufacturing facilities, which are widely dispersed in multiple locations in several countries including the United States, Germany, Malaysia, and China.”

Annual report 2026A · The company itself

“Our principal U.S. production and R&D operations, in alphabetical order, are located in California, Connecticut, Delaware, New Jersey, Pennsylvania, and Texas. Our principal non-U.S. production and R&D operations, in alphabetical order, are based in China, Finland, Germany, Malaysia, the Philippines, Singapore, South Korea, Sweden, Switzerland, the United Kingdom, and Vietnam.”

Annual report 2026A · The company itself

“We and our subcontractors maintain operations and continuously implement new product and process technologies at manufacturing facilities, which are widely dispersed in multiple locations in several countries including the United States, Germany, Malaysia, and China. As a result of the interdependence within our network of manufacturing facilities, an operational disruption at one of our or a subcontractor’s facilities may have a disproportionate impact on our ability to produce many of our products.”

Annual report 2026A · The company itself