Coherent Inc delivered a solid Q3 2024 performance with a 7% sequential revenue gain to $1.209 billion and a notable improvement in non-GAAP earnings per share (EPS) of $0.53, surpassing the high end of guidance. Operating cash flow reached $117 million, and the company reduced leverage by retiring $58 million of debt while refinancing the term loan B to improve interest margins. Management simultaneously reiterated a constructive long-term AI/datacom thesis, supported by a broadening 800G customer base and ongoing secular demand for AI-centered data center bandwidth. However, GAAP and non-GAAP margins were lagging plan in Q3, reflecting one-time or transitory margin headwinds, which the company expects to address through higher volume, mix benefits, and ongoing efficiency initiatives.