The information required by this item is set forth in our Consolidated Financial Statements contained in this Annual Report on Form 10-K. Specific financial statements can be found at the pages listed below: Page Management’s Report on Internal Control Over Financial Reporting 50 Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42) 51 Consolidated Balance Sheets 54 Consolidated Statements of Earnings (Loss) 55 Consolidated Statements of Comprehensive Income (Loss) 56 Consolidated Statements of Shareholders’ Equity and Mezzanine Equity 57 Consolidated Statements of Cash Flows 58 Notes to Consolidated Financial Statements 60 49 Table of Contents MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management’s Responsibility for Preparation of the Financial Statements Management is responsible for the preparation of the Consolidated Financial Statements included in this Annual Report on Form 10-K. The Consolidated Financial Statements were prepared in accordance with the accounting principles generally accepted in the United States of America and include amounts that are based on the best estimates and judgments of management. The other financial information contained in this Annual Report on Form 10-K is consistent with the Consolidated Financial Statements. Management’s Report on Internal Control Over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rules 13-15(f) and 15d-15(f). The Company’s internal control system is designed to provide reasonable assurance concerning the reliability of the financial data used in the preparation of the Company’s Consolidated Financial Statements, as well as reasonable assurance with respect to safeguarding the Company’s assets from unauthorized use or disposition. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement presentation and other results of such systems. Management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of June 30, 2026. In making this evaluation, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated Framework (2013). Management’s evaluation included reviewing the documentation of its controls, evaluating the design effectiveness of controls and testing their operating effectiveness. Based on the evaluation, management concluded that as of June 30, 2026, the Company’s internal controls over financial reporting were effective. Ernst & Young LLP, an independent registered public accounting firm, has issued its report on the effectiveness of our internal control over financial reporting as of June 30, 2026, which report is included herein. 50 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Coherent Corp. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Coherent Corp. and subsidiaries (the Company) as of June 30, 2026 and 2025, the related consolidated statements of earnings (loss), comprehensive income (loss), shareholders’ equity and mezzanine equity and cash flows for each of the three years in the period ended June 30, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2026, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated August 14, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 51 Table of Contents Goodwill Impairment Assessment - Lasers Reporting Unit Description of the Matter At June 30, 2026, the balance of the Company’s goodwill related to the Lasers reporting unit was $3.1 billion. As discussed in Note 1 to the consolidated financial statements, goodwill is reviewed annually for impairment, or more frequently if impairment indicators arise. The assessment of goodwill for impairment requires a comparison of the fair value of each reporting unit that has goodwill associated with its operations to its carrying amount, including goodwill. If the Company’s carrying amount of a reporting unit exceeds its fair value, an impairment loss would be measured as the excess of the carrying value over the calculated fair value.Auditing the Company’s annual goodwill impairment test for the Lasers reporting unit is complex because it involves making assumptions about the timing and amount of the forecasted future net cash flows of the reporting unit. The fair value estimate can be sensitive to significant assumptions such as revenue and the selected discount rate, which is based on a risk-adjusted weighted average cost of capital. These significant assumptions are forward looking and could be impacted by future economic conditions. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment evaluation process, including controls over management’s review of the assumptions described above.Our audit procedures to test management’s impairment evaluation of the Lasers reporting unit included, among others, assessing the valuation methodology and assumptions discussed above, and the underlying data used to develop such assumptions. For example, we compared certain assumptions to current industry, market and economic trends. Where appropriate, we evaluated whether changes to the Company’s business and other factors would affect the assumptions. We also assessed the historical accuracy of management’s estimates and performed independent sensitivity analyses. We involved our valuation specialists to assist us in evaluating the methodologies and auditing the assumptions used to calculate the estimated fair value of the Lasers reporting unit. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2008. Pittsburgh, Pennsylvania August 14, 2026 52 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Coherent Corp. Opinion on Internal Control Over Financial Reporting We have audited Coherent Corp. and subsidiaries’ internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Coherent Corp. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of June 30, 2026, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of June 30, 2026 and 2025, the related consolidated statements of earnings (loss), comprehensive income (loss), shareholders’ equity and mezzanine equity and cash flows for each of the three years in the period ended June 30, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) and our report dated August 14, 2026 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Pittsburgh, Pennsylvania August 14, 2026 53 Table of Contents Coherent Corp. and Subsidiaries Consolidated Balance Sheets ($000) June 30, 2026 2025 Assets Current Assets Cash and cash equivalents $ 1,162,018 $ 909,200 Restricted cash, current 35,156 8,897 Short-term investments 825,000 — Accounts receivable - less allowance for doubtful accounts of $13,193 at June 30, 2026 and $12,189 at June 30, 2025 1,343,278 964,051 Inventories 2,581,043 1,437,636 Prepaid and refundable income taxes 78,892 55,773 Prepaid and other current assets 900,112 551,597 Total Current Assets 6,925,499 3,927,154 Property, plant & equipment, net 2,999,343 1,877,507 Goodwill 4,375,597 4,471,084 Other intangible assets, net 2,884,474 3,204,747 Deferred income taxes 69,434 53,407 Restricted cash, non-current 571,222 714,816 Other assets 474,283 662,221 Total Assets $ 18,299,852 $ 14,910,936 Liabilities, Mezzanine Equity and Shareholders' Equity Current Liabilities Current portion of long-term debt $ 7,916 $ 188,306 Accounts payable 1,905,357 846,984 Accrued compensation and benefits 358,047 258,650 Operating lease current liabilities 61,371 41,575 Accrued income taxes payable 173,248 123,762 Other accrued liabilities 347,990 335,564 Total Current Liabilities 2,853,929 1,794,841 Long-term debt 3,214,308 3,498,615 Deferred income taxes 540,610 711,717 Operating lease liabilities 254,839 165,162 Other liabilities 197,966 259,318 Total Liabilities 7,061,652 6,429,653 Mezzanine Equity Series B redeemable convertible preferred stock, no par value, 5% cumulative; issued - 0 and 215,000 shares at June 30, 2026 and June 30, 2025, respectively; redemption value - $0 and $2,540,110, respectively — 2,483,261 Shareholders' Equity Common stock, no par value; authorized - 300,000,000 shares; issued - 212,615,894 shares at June 30, 2026; 171,849,325 shares at June 30, 2025 9,790,596 5,056,168 Accumulated other comprehensive income (AOCI) 204,112 372,037 Retained earnings 1,354,270 584,374 11,348,978 6,012,579 Treasury stock, at cost; 16,863,102 shares at June 30, 2026 and 16,294,119 shares at June 30, 2025 (445,483) (368,065) Total Coherent Corp. Shareholders' Equity 10,903,495 5,644,514 Noncontrolling interests (NCI) 334,705 353,508 Total Equity 11,238,200 5,998,022 Total Liabilities, Mezzanine Equity and Shareholders' Equity $ 18,299,852 $ 14,910,936 See Notes to Consolidated Financial Statements. 54 Table of Contents Coherent Corp. and Subsidiaries Consolidated Statements of Earnings (Loss) ($000, except per share data) Year Ended June 30, 2026 2025 2024 Revenues $ 7,118,181 $ 5,810,115 $ 4,707,688 Costs, Expenses and Other Expense Cost of goods sold 4,449,141 3,766,793 3,251,724 Research and development 722,952 581,924 478,788 Selling, general and administrative 1,044,566 926,451 854,001 Restructuring charges 63,390 160,081 27,054 Impairment of assets held-for-sale 64,404 84,988 — Gain on sale of business (124,133) — — Interest expense 190,267 243,251 288,475 Other income, net (140,139) (47,554) (44,707) Total Costs, Expenses and Other Expense 6,270,448 5,715,934 4,855,335 Earnings (Loss) Before Income Taxes 847,733 94,181 (147,647) Income Tax Expense 60,849 64,124 11,117 Net Earnings (Loss) 786,884 30,057 (158,764) Net Loss Attributable to Noncontrolling Interests (18,114) (19,307) (2,610) Net Earnings (Loss) Attributable to Coherent Corp. 804,998 49,364 (156,154) Less: Dividends on Preferred Stock 35,102 129,926 123,357 Net Earnings (Loss) Available to the Common Shareholders $ 769,896 $ (80,562) $ (279,511) Basic Earnings (Loss) Per Share $ 4.34 $ (0.52) $ (1.84) Diluted Earnings (Loss) Per Share $ 4.12 $ (0.52) $ (1.84) See Notes to Consolidated Financial Statements 55 Table of Contents Coherent Corp. and Subsidiaries Consolidated Statements of Comprehensive Income (Loss) ($000) Year Ended June 30, 2026 2025 2024 Net Earnings (Loss) $ 786,884 $ 30,057 $ (158,764) Other Comprehensive Income (Loss): Foreign currency translation adjustments (159,065) 409,069 (81,889) Change in fair value of interest rate instruments, net of taxes of $(3,126), $(5,406) and $(5,468) for the years ended June 30, 2026, 2025, and 2024, respectively (11,414) (31,898) (20,196) Pension adjustment, net of taxes of $0, $(1,543) and $(1,718) for the years ended June 30, 2026, 2025, and 2024, respectively 1,865 (6,351) (7,443) Other comprehensive Income (Loss) (168,614) 370,820 (109,528) Comprehensive Income (Loss) 618,270 400,877 (268,292) Comprehensive Loss Attributable to Noncontrolling Interests (18,114) (19,307) (2,610) Foreign Currency Translation Adjustments Attributable to Noncontrolling Interests (689) 1,423 429 Comprehensive Income (Loss) Attributable to Coherent Corp. $ 637,073 $ 418,761 $ (266,111) See Notes to Consolidated Financial Statements. 56 Table of Contents Coherent Corp. and Subsidiaries Consolidated Statements of Shareholders’ Equity and Mezzanine Equity ($000, including share amounts) Common Stock Preferred Stock Treasury Stock Mezzanine Equity Shares Amount Shares Amount AOCI Retained Earnings Shares Amount NCI Total Preferred Shares Amount Balance - June 30, 2023 154,721 $ 3,781,211 2,300 $ 445,319 $ 109,726 $ 944,416 (15,137) $ (293,121) $ — $ 4,987,551 215 $ 2,241,415 Share-based and deferred compensation activities 3,447 166,800 — — — — (492) (22,001) — 144,799 — — Conversion of Series A preferred stock 10,240 445,319 (2,300) (445,319) — — — — — — — — Net loss — — — — — (156,154) — — (2,610) (158,764) — — Foreign currency translation adjustments — — — — (82,318) — — — 429 (81,889) — — Change in fair value of interest rate instruments, net of taxes of $(5,468) — — — — (20,196) — — — — (20,196) — — Pension adjustment, net of taxes of $(1,718) — — — — (7,443) — — — — (7,443) — — Dividends — — — — — (123,322) — — — (123,322) — 123,357 Sale of shares of noncontrolling interests, net of issuance costs of $31,840 and taxes of $127,389 — 464,327 — — 2,871 — — — 373,573 840,771 — — Balance - June 30, 2024 $ 168,408 $ 4,857,657 — $ — $ 2,640 $ 664,940 (15,629) $ (315,122) $ 371,392 $ 5,581,507 215 $ 2,364,772 Share-based and deferred compensation activities 3,441 199,204 — — — — (665) (52,943) — 146,261 — — Net earnings — — — — — 49,364 — — (19,307) 30,057 — — Foreign currency translation adjustments — — — — 407,646 — — — 1,423 409,069 — — Change in fair value of interest rate instruments, net of taxes of $(5,406) — — — — (31,898) — — — — (31,898) — — Pension adjustment, net of taxes of $(1,543) — — — — (6,351) — — — — (6,351) — — Dividends — — — — — (129,930) — — — (129,930) — 118,489 Change in deferred tax basis for noncontrolling interests — (693) — — — — — — — (693) — — Balance - June 30, 2025 171,849 $ 5,056,168 — $ — $ 372,037 $ 584,374 (16,294) $ (368,065) $ 353,508 $ 5,998,022 215 $ 2,483,261 Share-based and deferred compensation activities 2,857 229,093 — — — — (569) (77,418) — 151,675 — — Conversion of Series A preferred stock 30,122 2,506,885 — — — — — — — 2,506,885 (215) (2,506,885) Net earnings — — — — — 804,998 — — (18,114) 786,884 — — Foreign currency translation adjustments — — — — (158,376) — — — (689) (159,065) — — Change in fair value of interest rate instruments, net of taxes of $(3,126) — — — — (11,414) — — — — (11,414) — — Pension adjustment, net of taxes of $0 — — — — 1,865 — — — — 1,865 — — Dividends — — — — — (35,102) — — — (35,102) — 23,624 Sale of shares net of issuance costs of $1,575 7,788 1,998,450 — — — — — — — 1,998,450 — — Balance - June 30, 2026 212,616 $ 9,790,596 — $ — $ 204,112 $ 1,354,270 (16,863) $ (445,483) $ 334,705 $ 11,238,200 — $ — See Notes to Consolidated Financial Statements 57 Table of Contents Coherent Corp. and Subsidiaries Consolidated Statements of Cash Flows ($000) Year Ended June 30, 2026 2025 2024 Cash Flows from Operating Activities Net earnings (loss) $ 786,884 $ 30,057 $ (158,764) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation 241,561 250,810 271,601 Amortization 280,334 302,788 288,160 Share-based compensation expense 186,468 160,239 126,049 Non-cash restructuring and impairment charges 87,563 140,912 16,557 Amortization of debt issuance costs 17,560 19,774 17,652 Loss on disposals of property, plant & equipment 599 782 758 Unrealized losses (gains) on foreign currency remeasurements and transactions (24,792) 33,122 (10,556) Loss (earnings) from equity investments (690) (1,316) 51 Deferred income taxes (198,732) (95,434) (112,096) Gain on sale of business (124,133) — — Gain on sale of equity investment (73,998) — — Loss on debt extinguishment 3,056 — 1,978 Increase (decrease) in cash from changes in: Accounts receivable (367,631) (170,444) 60,581 Inventories (1,183,000) (202,728) (23,196) Accounts payable 748,533 217,357 205,044 Contract liabilities (9,307) 3,182 (72,818) Income taxes 18,175 (22,118) 12,251 Accrued compensation and benefits 99,397 62,960 36,894 Other operating net assets (liabilities) (408,333) (96,343) (114,415) Net cash provided by operating activities 79,514 633,600 545,731 Cash Flows from Investing Activities Additions to property, plant & equipment (1,102,909) (440,836) (346,816) Purchases of intangible assets (7,174) — — Proceeds from sale of equity investment 89,384 — — Proceeds from the sale of business, net of fees 436,992 27,000 — Purchases of short-term investments (1,025,000) — — Proceeds from sales/maturities of short-term investments 200,000 — — Other investing activities (5,017) (379) (3,897) Net cash used in investing activities (1,413,724) (414,215) (350,713) Cash Flows from Financing Activities Sale of shares to noncontrolling interests — — 1,000,000 Proceeds from borrowings of Term A Facility 1,250,000 — — Proceeds from borrowings of Term B Facility 3,267 — — Proceeds from borrowings of revolving credit facilities 640,075 53,729 18,966 Proceeds from borrowings of other credit facilities 28,004 — — Proceeds from issuance of common shares 1,998,552 — — Payments on existing debt (1,723,437) (436,986) (228,802) Payments on borrowings under revolving credit facilities (676,211) (51,661) (19,027) Debt issuance costs (9,101) — — Equity issuance costs — — (31,840) Proceeds from exercises of stock options and purchases of stock under employee stock purchase plan 53,814 49,570 42,297 Payments in satisfaction of employees’ minimum tax obligations (77,419) (53,992) (22,315) Cash dividends paid (11,438) (11,438) — Other financing activities 970 (948) (1,007) 58 Table of Contents Net cash provided by (used in) financing activities 1,477,076 (451,726) 758,272 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (7,383) 75,568 (1,170) Net increase (decrease) in cash, cash equivalents, and restricted cash 135,483 (156,773) 952,120 Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 1,632,913 1,789,686 837,566 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 1,768,396 $ 1,632,913 $ 1,789,686 Supplemental Information Cash paid for interest $ 189,256 $ 256,704 $ 312,879 Cash paid for income taxes $ 208,129 $ 166,849 $ 97,295 Non-Cash Investing and Financing Activities: Additions to property, plant & equipment included in accounts payable $ 371,779 $ 67,146 $ 63,286 Conversion of Series A and B preferred stock to common stock $ 2,506,885 $ — $ 445,319 See Notes to Consolidated Financial Statements. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows. Year Ended June 30, 2026 2025 ($000) Cash and cash equivalents $ 1,162,018 $ 909,200 Restricted cash, current 35,156 8,897 Restricted cash, non-current 571,222 714,816 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows $ 1,768,396 $ 1,632,913 59 Table of Contents Coherent Corp. and Subsidiaries Notes to Consolidated Financial Statements Note 1. Nature of Business and Summary of Significant Accounting Policies Nature of Business. Coherent Corp. (“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 data center and communications, as well as industrial applications, including precision manufacturing, energy, semiconductor & display capital equipment, and instrumentation. We generate nearly all of our revenues, earnings, and cash flows from developing, manufacturing, and marketing a wide range of products and services for our end markets. Coherent has broad technical expertise and a deep technology stack in areas of importance to our products, including materials growth and fabrication of specialty materials, lasers including semiconductor and high power lasers, passive optics including isolators, transceivers, transport equipment, high power lasers for semiconductor capital equipment, display manufacturing, precision manufacturing, consumer electronics, life sciences applications, and scientific research. Many of our products include custom integrated software that we develop internally, leveraging our deep domain expertise. The Company markets its products through its direct sales force and through distributors and agents. The Company uses certain uncommon materials and compounds to manufacture its products. Some of these materials are available from only one proven outside source. The continued high quality of these materials is critical to the stability of our manufacturing yields. Consolidation. The Consolidated Financial Statements include the accounts of the Company and all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified for consistency with the current year presentation. Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates are based on management’s best knowledge of current events and actions Coherent may undertake in the future, actual results may ultimately differ from the estimates. Foreign Currency Translation. For all foreign subsidiaries whose functional currency is not the U.S. dollar, the functional currency is the local currency. Assets and liabilities of those operations are translated into U.S. dollars using period-end exchange rates while income and expenses are translated using the average exchange rates for the reporting period. Translation adjustments are recorded as Accumulated other comprehensive income (loss) within Shareholders’ equity in the accompanying Consolidated Balance Sheets. Cash, Cash Equivalents, and Restricted Cash. We consider highly liquid investment instruments with an original maturity of three months or less to be cash equivalents. As of June 30, 2026, we had restricted cash of $606 million that is restricted for a specific purpose, with $35 million and $571 million recorded in Restricted cash, current and Restricted cash, non-current, respectively, on our Consolidated Balance Sheet. Allowance for Expected Credit Losses. We recognize expected credit losses resulting from the inability of our customers to make required payments through an allowance account that is measured each reporting date. We estimate credit losses over the life of our trade accounts receivable using a combination of historical loss data, current credit conditions, specific customer circumstances, and reasonable and supportable forecasts of future economic conditions. Inventories. Inventories are valued at the lower of cost or net realizable value, with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. In evaluating the net realizable value of inventory, management also considers other factors, including known trends and market conditions. We generally record a reduction to the carrying value of inventory as a charge against earnings for all products on hand more than 12 to 24 months, depending on the nature of the products, that have not been sold to customers or cannot be further manufactured for sale to alternative customers. An additional charge may be recorded for product on hand that is in excess of product sold to customers over the same periods noted above. Property, Plant and Equipment. Property, plant and equipment are carried at cost or fair value upon acquisition. Major improvements are capitalized, while maintenance and repairs are generally expensed as incurred. We review our property, plant and equipment and other long-lived assets for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. Depreciation on property, plant and equipment and amortization on finance lease right-of-use assets for financial reporting purposes is computed primarily by the straight-line method over the estimated useful lives for building, building improvements and land improvements of 10 to 30 years and 3 to 20 years for machinery and equipment. 60 Table of Contents Investment Credit. The CHIPS Act provides an Advanced Manufacturing Investment Credit (“AMIC”) under Section 48D for qualified investments in advanced manufacturing facilities. The Company expects to receive refundable federal tax credits related to certain expansion projects. Credits attributable to property, plant and equipment are recorded as reductions to the depreciable basis of the related assets, while credits attributable to capitalized SG&A costs are recorded as reductions to SG&A expense. The Company recorded reductions to property, plant, and equipment of $41 million and $39 million during fiscal 2025 and fiscal 2026, respectively, and recorded a reduction to SG&A expense of $21 million during fiscal 2026. Related receivables are based on management's interpretation of Section 48D and are refundable to the extent they exceed federal income tax liabilities. They are recorded within prepaid and refundable income taxes in the Consolidated Balance Sheet. Leases. Leases are recognized under Accounting Standards Codification 842, Leases. The Company determines whether a contract contains a lease at contract inception. A contract contains a lease if there is an identified asset and the Company has the right to control the asset. Operating lease right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use the incremental borrowing rate in determining the present value of lease payments, unless the implicit rate is readily determinable. If lease terms include options to extend or terminate the lease, the ROU asset and lease liability are measured based on the reasonably certain decision. We have lease agreements with lease and non-lease components, which are accounted for as a single lease component for all classes of leased assets for which the Company is the lessee. Additionally, for certain equipment leases, the portfolio approach is applied to account for the operating lease ROU assets and lease liabilities. In the Consolidated Statements of Earnings (Loss), lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. Some leasing arrangements require variable payments that are dependent upon usage or output, or may vary for other reasons, such as insurance or tax payments. Variable lease payments are recognized as incurred, and are not presented as part of the ROU asset or lease liability. See Note 9. Leases for further information. Business Combinations. The Company accounts for business combinations by establishing the acquisition-date fair value as the measurement for all assets acquired and liabilities assumed. Certain provisions of U.S. GAAP prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition-related restructuring costs from acquisition accounting. Goodwill. The excess purchase price over the fair value allocated to identifiable tangible and intangible net assets of businesses acquired is reported as goodwill in the accompanying Consolidated Balance Sheets. We test goodwill for impairment at least annually as of April 1, or whenever events or changes in circumstances indicate that goodwill might be impaired. The assessment requires significant judgment regarding future operating performance, including projections of revenues, profitability and cash flows, as well as assumptions regarding market conditions and discount rates. Goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. As of April 1 of fiscal years 2026 and 2025, we completed our annual impairment tests of our reporting units using the quantitative assessment. For fiscal year 2026, the fair values of the reporting units were determined using a discounted cash flow analysis with projected financial information based on our most recently completed long-term strategic planning processes and also considered the current financial performance compared to our prior projections of the reporting units, as well as a market analysis. As of April 1, 2026, the fair value of each of our reporting units, except for Lasers, exceeded their carrying values with significant headroom. As of April 1, 2025, the fair value of each of our reporting units exceeded their carrying values with significant headroom. For the Lasers reporting unit, as of April 1, 2026, based on the quantitative assessment, the estimated fair value exceeded the carrying value by approximately 8%. Accordingly, we concluded that goodwill was not impaired; however, the reporting unit remains sensitive to changes in assumptions and future operating performance. Our Lasers reporting unit has goodwill of approximately $3.1 billion at June 30, 2026. In evaluating the Lasers reporting unit, significant weight was provided to the forecasted revenue and related gross margins as we determined that these have the most significant impact on its fair value. The forecasted profitability is expected to increase as volumes increase and the achievement of operating efficiencies and the benefit from the multi-year synergy and site consolidation plans are realized. The valuation utilized a discount rate of 11.0%, representing the rate of return a market participant would require for an investment in the reporting unit. If actual results differ materially from management’s estimates and assumptions, a material goodwill impairment charge could occur in future periods. Due to the cyclical nature of our business, and the other factors described in the section on Risk Factors set forth in Item 1A of this Annual Report on Form 10-K, the profitability of our individual reporting units may periodically be affected by downturns in customer demand, operational challenges and other factors. If material adverse conditions occur that impact one or more of our reporting units, our determination of future fair value might not support the carrying amount of one or more of our reporting units, and the related goodwill would need to be impaired. 61 Table of Contents Intangibles. Intangible assets are initially recorded at their cost or fair value upon acquisition. Finite-lived intangible assets are amortized using the straight-line method over the estimated useful lives of the assets ranging from 1 to 20 years. Indefinite-lived intangible assets are not amortized but tested annually for impairment at April 1, or when events or changes in circumstances indicate that indefinite-lived intangible assets might be impaired. As of April 1 of fiscal 2026, the Company completed a quantitative impairment test of the Coherent trade name acquired in the acquisition of Coherent, Inc. (“Merger”) using the relief from royalty method and determined that its fair value is well in excess of its carrying value. Series B Convertible Preferred Stock. The Series B-1 and B-2 Convertible Preferred Stock was initially measured at fair value less issuance costs, accreted to its redemption value over a ten-year period (using the effective interest method) with such accretion accounted for as deemed dividends and reductions to Net Earnings (Loss) Available to the Common Shareholders. All outstanding shares of Series B-1 and Series B-2 Preferred Stock were converted to Company Common Stock in the second quarter of fiscal 2026, and no shares of Preferred Stock are currently issued and outstanding. See Note 14. Equity and Redeemable Preferred Stock for further information. Noncontrolling Interests. The Company accounts for noncontrolling interests in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the Consolidated Balance Sheets and the consolidated net earnings (loss) attributable to its noncontrolling interests be clearly identified and presented on the face of the Consolidated Statements of Earnings (Loss) and Consolidated Statements of Comprehensive Income (Loss). See Note 15. Noncontrolling Interests for further information on the noncontrolling interests in our Silicon Carbide LLC subsidiary. Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. If a loss is not both probable and reasonably estimable, or if an exposure to a loss exists in excess of the amount accrued, the Company assesses whether there is at least a reasonable possibility that a loss, or additional loss, may have been incurred. If there is a reasonable possibility that a loss, or additional loss, may have been incurred, the Company discloses the estimate of the possible loss or range of loss if it is material and an estimate can be made, or discloses that such an estimate cannot be made. The determination as to whether a loss can reasonably be considered to be possible or probable is based on management's assessment, together with legal counsel, regarding the ultimate outcome of the matter. Legal costs incurred in connection with loss contingencies are expensed as incurred. Such liabilities are adjusted as further information develops or circumstances change. Our customers may discover defects in our products after the products have been fully deployed and operated under peak stress conditions. If we are unable to correct defects or other problems, we could experience, among other things, loss of customers, increased costs of product returns and warranty expenses, damage to our brand reputation, failure to attract new customers or achieve market acceptance, diversion of development and engineering resources, or legal action by our customers. We had no material loss contingency liabilities at June 30, 2026 or 2025 related to commitments and contingencies. Supply Chain Financing Arrangements. The Company has entered into supply chain financing arrangements with third-party financial institutions to provide its vendors with enhanced payment options while providing the Company with added working capital flexibility. The Company does not provide any guarantees under these arrangements, does not have an economic interest in its suppliers’ voluntary participation, does not receive an economic benefit from the financial institutions, and no assets are pledged under the arrangements. The arrangements do not change the payable terms negotiated by the Company and our vendors and does not result in a change in the classification of amounts due as accounts payable in the Consolidated Balance Sheets. Suppliers utilized the program to accelerate receipt of payment from these financial institutions for $27 million and $18 million of the Company's outstanding Accounts payable as of June 30, 2026 and 2025, respectively. Total supplier invoices paid by the financial institutions amounted to $104 million and $76 million for the years ended June 30, 2026 and 2025, respectively. The supplier invoices included under the program require payment in full to the financial institutions consistent with the Company’s normal terms and conditions as agreed upon with the vendor. Income Taxes. Deferred income tax assets and liabilities are determined based on the differences between the Consolidated Financial Statements and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount more likely than not to be realized. The Company’s accounting policy is to apply acquired deferred tax liabilities to pre-existing deferred tax assets before evaluating the need for a valuation allowance for acquired deferred tax assets. 62 Table of Contents The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The amount of unrecognized tax benefits is adjusted for changes in facts and circumstances. For example, adjustments could result from significant amendments to existing tax law and the issuance of regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. The Company believes that its estimates for uncertain tax positions are appropriate and sufficient to pay assessments that may result from examinations of its tax returns. The Company recognizes both accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company uses a portfolio approach to release the income tax effects in AOCI related to interest rate instruments and pension and postretirement benefits. Under this approach, the income tax effects are released from AOCI based on the pre-tax adjustments to interest rate instruments and pension liabilities or assets recognized within other comprehensive income (loss). Any tax effects remaining in AOCI are released only when the entire portfolio of the interest rate instruments or pension and postretirement benefits is liquidated, sold or extinguished. Revenue Recognition. Revenue is recognized under Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606), when or as obligations under the terms of a contract with our customer have been satisfied and control has transferred to the customer. We have elected the practical expedient to exclude all sales and use taxes from the measurement of the transaction price. In certain customer arrangements, we are contractually entitled to reimbursement for import tariffs incurred on product shipments, the increase in consideration received due to tariff surcharges would not meet the sales and use tax practical expedient. As such, revenue including the tariff surcharge, and related tariff expense, would be recorded gross in the income statement. These reimbursements are considered part of the transaction price under ASC 606 and are recognized as revenue on a gross basis. The corresponding tariff costs are recorded in cost of goods sold. For contracts with commercial customers, which comprise the majority of our performance obligations, ownership of the goods and associated revenue are generally transferred to customers at a point in time, generally upon shipment of a product to the customer or delivery of the product to the customer and without significant judgments. The majority of contracts typically require payment within 30 to 90 days after transfer of ownership to the customer. We periodically enter into contracts in which a customer may purchase a combination of goods and/or services, such as products with maintenance contracts or extended warranty. Maintenance contracts and extended warranties are typically sold separately from products, and represent a distinct performance obligation. Revenue related to the performance obligation for maintenance contracts and extended warranties is recognized over time as the customer simultaneously receives and consumes the benefits provided by us. Service revenue includes repairs, tolling arrangements and installation. Repairs, tolling and installation activities are usually completed in a short period of time (normally less than one month) and therefore recorded at a point in time when the services are completed. The majority of contracts typically require payment within 30 to 90 days after performance of the service. Non-recurring engineering arrangements are typically recognized as product revenue over time under either the time and material practical expedient, as the entity has a right to consideration from a customer, in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, or under the output and input method. The majority of contracts typically require payment within 30 to 90 days. Our revenue recognition policy is consistently applied across our segments, product lines, services, and geographical locations. For the periods covered herein, we measure revenue based on the amount of consideration the Company expects to be entitled to in exchange for products or services, reduced by the amount of variable consideration related to products expected to be returned. We determine variable consideration, which primarily consists of product returns and distributor sales price reductions resulting from price protection agreements, by estimating the impact of such reductions based on historical analysis of such activity. Under ASC 606, we expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses (“SG&A”). We offer an assurance-type limited warranty that products will be free from defects in materials and workmanship. We establish an accrual for estimated warranty expenses at the time revenue is recognized. The warranty is typically one year, although it can be longer periods for certain products, and is typically limited to either (1) the replacement or repair of the product or (2) a credit against future purchases. 63 Table of Contents We believe that disaggregating revenue by end market provides the most relevant information regarding the nature, amount, timing, and uncertainty of revenues and cash flows. See Note 3. Revenue from Contracts with Customers for further information. Tariff Refund Receivable In early 2025, the United States implemented significant new tariffs and export restrictions affecting a broad range of countries, commodities and industries. These actions have prompted retaliatory measures from certain foreign governments, including the imposition of tariffs and export controls. On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were not authorized by the statute. The Company is the importer of record for certain raw materials and products that were previously subject to such tariffs under IEEPA. During the fourth quarter of fiscal 2026, following the orders of the U.S. Court of International Trade directing U.S. Customs and Border Protection to refund such duties, the Company concluded that recovery of a portion of previously paid tariffs was probable. As a result, the Company recorded the receipt of tariff refunds received and recognized a net receivable for additional refunds expected to be recovered. The amounts recorded were not material to the Company. The receivable represents the Company’s estimate of recoverable tariffs associated with eligible import entries based on information available as of June 30, 2026, including shipment‑level data and applicable court rulings guidance. The timing of collection remains subject to U.S. Customs and Border Protection’s administrative processes, and actual amounts ultimately received may differ from estimates as refund claims are reviewed and validated. Research and Development. R&D expenses include salaries, contractor and consultant fees, supplies and materials, as well as costs related to other overhead such as depreciation, facilities, utilities and other departmental expenses. The costs we incur with respect to internally developed technology, including allocations of our wafer fabrication and other manufacturing facilities and resources utilized to support R&D programs, are included in R&D expenses as incurred. Restructuring. The Company records charges associated with approved restructuring plans to reorganize operations, to remove redundant headcount and infrastructure associated with site consolidations, facilities moves and closures, as well as the relocation and requalification of certain manufacturing facilities. Restructuring charges can include severance costs to eliminate a specific number of positions, infrastructure charges to vacate facilities and consolidate operations and contract cancellation costs. The Company records restructuring charges when they are probable and estimable. The Company evaluates restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations, and ASC 712, Compensation-Nonretirement Post-Employment Benefits (ASC 712). See Note 12. Restructuring Plans for further information. Assets Held-for-Sale. Assets and liabilities are classified as held-for-sale when management approves and commits to a formal plan to actively market the assets for sale at a price reasonable in relation to their estimated fair value, the assets are available for immediate sale in their present condition, an active program to locate a buyer and other actions required to complete the sale have been initiated, the sale of the assets is probable and expected to be completed within one year, and it is unlikely that significant changes will be made to the plan. These conditions are usually met from the date on which a letter of intent or agreement to sell is ready for signing. Assets held-for-sale are reported at the lower of carrying amount or fair value less costs to sell. Long-lived assets classified as held-for-sale are not subject to depreciation or amortization. The held-for-sale designation and carrying value of assets held-for-sale are periodically reviewed and adjusted as facts and circumstances indicate that a change may be necessary. See Note 7. Assets Held-for-Sale and Sale of Businesses for further information. Share-Based Compensation. Share-based compensation arrangements require the recognition in net earnings (loss) of the grant date fair value of share-based compensation (for equity-classified awards). We recognize the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period, net of forfeitures. The estimated annualized forfeitures are based on our historical experience of pre-vesting cancellations. We will record additional expense in future periods if the actual forfeiture rate is lower than estimated, and will adjust expense in future periods if the actual forfeitures are higher than estimated. See Note 17. Share-Based Compensation for a description of our share-based compensation plans and the assumptions we use to calculate the fair value of share-based compensation. Earnings per Share. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to the common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the diluted earnings (loss) available to the common shareholders by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. If there is a net loss for the period, diluted earnings per share is the same as basic earnings per share. See Note 19. Earnings Per Share for further information. Accumulated Other Comprehensive Income (Loss) (“AOCI”). AOCI is a measure of all changes in shareholders’ equity that result from transactions and other economic events in the period other than transactions with owners. AOCI is a component of shareholders’ equity and consists of accumulated foreign currency translation adjustments, changes in the fair value of interest rate derivative instruments, and pension adjustments. 64 Table of Contents Fair Value Measurements. We apply fair value accounting for all financial assets and liabilities that are required to be recognized or disclosed at fair value in the Consolidated Financial Statements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, we consider the principal or most advantageous market in which we would transact, and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. Note 2. Recently Issued Financial Accounting Standards In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. ASU 2023-09 was effective for annual periods beginning after December 15, 2024, on either a prospective or retrospective basis. Early adoption was permitted. The Company adopted the standard in fiscal 2026. See Note 18. Income Taxes for further information. In November 2024, the FASB issued ASU 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses.” This ASU requires disclosure about specific types of expenses included in expense captions including purchases of inventory, employee compensation, depreciation, amortization, and depletion. This ASU is effective for our annual disclosures starting in fiscal year 2028 and interim periods starting in fiscal year 2029. Early adoption is permitted. A public entity should apply the amendments in this ASU on a prospective basis with the option to apply the standard retrospectively. The Company is currently evaluating this ASU to determine its impact on the Company’s disclosures. Note 3. Revenue from Contracts with Customers We disaggregate revenue by market and geography. We believe that disaggregating revenue by market and geography provides the most relevant information regarding the nature, amount, timing, and uncertainty of revenues and cash flows. We do not present other levels of disaggregation, such as by type of products, customer, contracts, duration of contracts, timing of transfer of control and sales channels, as this information is not used by our chief operating decision maker (“CODM”) to manage the business. Effective July 1, 2025, the Company aligned its reporting of revenues into two markets: (i) Datacenter & Communications, and (ii) Industrial. All prior period market and segment disclosure information has been reclassified to conform to the current reporting structure. The following tables summarize disaggregated revenue by market ($000): Year Ended June 30, Markets 2026 2025 2024 Datacenter & Communications $ 5,274,629 $ 3,755,164 $ 2,631,369 Industrial 1,843,552 2,054,951 2,076,319 Total Revenues $ 7,118,181 $ 5,810,115 $ 4,707,688 Contract Liabilities Payments received from customers are based on invoices or billing schedules as established in contracts with customers. Contract liabilities generally relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue when the performance obligations have been satisfied. During the year ended June 30, 2026, we recognized revenue of $51 million related to customer payments that were included as contract liabilities in the Consolidated Balance Sheet as of June 30, 2025. We had $63 million of contract liabilities recorded in the Consolidated Balance Sheet as of June 30, 2026. As of June 30, 2026, $48 million of contract liabilities is included within Other accrued liabilities, and $15 million is included within Other liabilities on the Consolidated Balance Sheet. As of June 30, 2025, $63 million of contract liabilities is included in Other accrued liabilities, and $9 million is included within Other liabilities on the Consolidated Balance Sheet. 65 Note 4. Inventories The components of inventories were as follows ($000): June 30, 2026 2025 Raw materials $ 660,487 $ 394,682 Work in progress 1,556,956 824,360 Finished goods 363,600 218,594 Total inventories $ 2,581,043 $ 1,437,636 Note 5. Property, Plant and Equipment Property, plant and equipment consists of the following ($000): June 30, 2026 2025 Land and improvements $ 58,996 $ 59,543 Buildings and improvements 1,030,787 881,578 Machinery and equipment 2,916,096 2,188,509 Construction in progress 776,511 363,129 4,782,390 3,492,759 Less accumulated depreciation (1,783,047) (1,615,252) Property, plant and equipment, net $ 2,999,343 $ 1,877,507 Note 6. Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill were as follows ($000): Year Ended June 30, 2026 Datacenter & Communications Industrial Total Balance-beginning of period $ 1,150,570 $ 3,320,514 $ 4,471,084 Other reclassifications(1) — 24,493 24,493 Foreign currency translation (170) (119,810) (119,980) Balance-end of period $ 1,150,400 $ 3,225,197 $ 4,375,597 1) Other reclassifications include adjustments to goodwill classified as held-for-sale. See Note 7. Assets Held-for-Sale and Sale of Businesses for further information. Year Ended June 30, 2025 Datacenter & Communications Industrial Total Balance at beginning of period $ 1,147,297 $ 3,317,032 $ 4,464,329 Other reclassifications(1) — (174,373) (174,373) Foreign currency translation and other 3,273 177,855 181,128 Balance-end of period $ 1,150,570 $ 3,320,514 $ 4,471,084 (1) Other reclassifications include adjustments to goodwill classified as held-for-sale. See Note 7. Assets Held-for-Sale and Sale of Businesses for further information. Prior to our change in segments, goodwill as of June 30, 2025 was $1,038 million, $241 million, and $3,191 million in our Networking, Materials and Lasers segments, respectively. The gross carrying amount and accumulated amortization of our intangible assets other than goodwill were as follows ($000): 66 Table of Contents June 30, 2026 June 30, 2025 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Technology $ 1,505,754 $ (601,358) $ 904,396 $ 1,534,066 $ (513,181) $ 1,020,885 Trade Names 438,471 (8,471) 430,000 438,471 (8,471) 430,000 Customer Lists 2,384,730 (834,652) 1,550,078 2,440,834 (686,972) 1,753,862 Backlog and Other 82,887 (82,887) — 90,121 (90,121) — Total $ 4,411,842 $ (1,527,368) $ 2,884,474 $ 4,503,492 $ (1,298,745) $ 3,204,747 Amortization expense recorded on intangible assets for the fiscal years ended June 30, 2026, 2025 and 2024 was $280 million, $303 million, and $288 million, respectively. The technology intangible assets are being amortized over a range of 60 to 240 months with a weighted-average remaining life of approximately 109 months, and the amortization is recorded in Cost of goods sold in our Consolidated Statements of Earnings (Loss). The customer lists are being amortized over 60 to 192 months with a weighted-average remaining life of approximately 127 months, and the amortization is recorded in SG&A in our Consolidated Statements of Earnings (Loss). Amortization expense in the fiscal year ended June 30, 2025 includes a total of $17 million of impairment charges in the Industrial segment related to the abandonment of certain purchased technology and licenses, of which $14 million was recorded in Cost of goods sold and $3 million was recorded in R&D in our Consolidated Statements of Earnings (Loss). No impairment charges were included in amortization expense during the fiscal years ended June 30, 2026 or 2024. In the fourth quarter of fiscal year 2026, we completed our annual impairment test of our indefinite-lived Coherent trade name, which had a carrying value of $430 million. Based on the results of the assessment, we concluded that the trade name was not impaired. The estimated amortization expense for existing intangible assets for each of the five succeeding years is as follows ($000): Year Ending June 30, 2027 $ 277,273 2028 242,596 2029 274,005 2030 251,941 2031 240,404 Note 7. Assets Held-for-Sale and Sale of Businesses In the fourth quarter of fiscal 2025, management entered into non-binding agreements to sell several entities. As a result of classifying these entities as held-for-sale, the Company recorded non-cash impairment charges of $85 million within the Industrial segment. These charges were recognized in Impairment of assets held-for-sale in our Consolidated Statements of Earnings (Loss) in the fourth quarter of fiscal 2025 to reduce the carrying values of the entities to their estimated fair value. On September 2, 2025, the Company completed the sale of its aerospace and defense business, which was part of the Industrial segment, for approximately $400 million, subject to customary post-closing adjustments. In connection with the sale, the Company recorded a gain of $115 million and incurred approximately $9 million in transaction related costs which were recorded in Gain on sale of business and SG&A expenses, respectively, in the Consolidated Statements of Earnings (Loss) in fiscal 2026. On January 30, 2026, the Company completed the sale of its product division based in Munich, Germany that makes tools for materials processing, which is part of the Industrial segment. The transaction resulted in a loss of $96 million. The loss was primarily attributable to impairment charges of $105 million recognized within Impairment of assets held-for-sale in the Consolidated Statements of Earnings (Loss), including $81 million in the fourth quarter of fiscal 2025, $13 million in the first quarter of fiscal 2026 and $11 million in the second quarter of fiscal 2026. These impairment charges were partially offset by a gain of $9 million recorded within Gain on sale of business in the Consolidated Statements of Earnings (Loss) in fiscal 2026. 67 Table of Contents In the year ended June 30, 2026, the Company recorded additional non-cash impairment charges of $64 million within the Industrial segment related to three entities. Two of these entities had already been classified as held-for-sale as of the prior fiscal year-end and remained classified as held-for-sale during the first and second quarters of fiscal 2026, while the third entity was classified as held-for-sale during the fourth quarter of fiscal 2026. The charges were recorded in Impairment of assets held-for-sale in the Consolidated Statements of Earnings (Loss) in fiscal 2026 to reduce the carrying value of entities classified as held-for-sale to their estimated fair value. Current assets and current liabilities held for sale are recorded in Prepaid and other current assets and Other accrued liabilities, respectively, in our Consolidated Balance Sheets. Noncurrent assets and noncurrent liabilities held for sale are recorded in Other assets and Other liabilities, respectively, in our Consolidated Balance Sheets. Assets and liabilities held-for-sale are in the Industrial segment at both June 30, 2026 and June 30, 2025. Current and noncurrent assets and liabilities classified as held-for-sale as of June 30, 2026 and June 30, 2025 are as follows ($000): June 30, 2026 June 30, 2025 Accounts receivable $ 628 $ 43,353 Inventories 31,755 97,236 Prepaid and refundable income taxes 119 9,023 Prepaid and other current assets 3,127 3,067 Less: Impairment of assets held for sale (7,015) — Total current assets held-for-sale $ 28,614 $ 152,679 Property, plant & equipment, net $ 21,286 $ 103,863 Goodwill 3,624 174,373 Intangible assets — 141,647 Other assets 12,368 32 Less: Impairment of assets held-for-sale (37,278) (84,988) Total noncurrent assets held-for-sale $ — $ 334,927 Accounts payable $ 3,328 $ 19,209 Accrued compensation and benefits 3,289 16,768 Operating lease current liabilities 387 2,441 Accrued income taxes payable (510) (226) Other accrued liabilities 4,512 19,202 Total current liabilities held-for-sale $ 11,006 $ 57,394 Deferred income taxes $ — $ 14,785 Operating lease liabilities 1,076 5,980 Other liabilities 1,318 7,870 Total noncurrent liabilities held-for-sale $ 2,394 $ 28,635 68 Table of Contents Note 8. Debt The components of debt as of the dates indicated were as follows ($000): June 30, 2026 June 30, 2025 Term A Facility, interest at adjusted SOFR, as defined, plus 1.25% $ 1,140,625 $ 624,375 Debt issuance costs, Term A Facility and Revolving Credit Facility (10,087) (8,141) Term B Facility, interest at adjusted SOFR, as defined, plus 1.75% 1,080,000 2,102,358 Debt issuance costs, Term B Facility (21,228) (36,478) Other Credit Facility 28,004 — Borrowings on local lines of credit 4,791 2,091 Facility construction loan in Germany 14,062 17,682 5.00% Senior Notes 990,000 990,000 Debt Issuance costs and discount, Senior Notes (3,943) (4,966) Total debt 3,222,224 3,686,921 Current portion of long-term debt (7,916) (188,306) Long-term debt, less current portion $ 3,214,308 $ 3,498,615 The required annual principal repayments for all indebtedness for the next five years and thereafter, as of June 30, 2026, is set forth in the following table ($000): Year Ending June 30, 2027 $ 7,916 2028 34,375 2029 93,629 2030 2,135,625 2031 985,937 Thereafter — Total $ 3,257,482 Senior Credit Facilities On July 1, 2022 (the “Closing Date”), Coherent entered into a credit agreement (the “Credit Agreement”) by and among the Company, as borrower (in such capacity, the “Borrower”), the lenders, and other parties thereto, and JP Morgan Chase Bank, N.A., as administrative agent and collateral agent, which provided for senior secured financing of $4.0 billion, consisting of a term loan A credit facility (the “Term A Facility”) maturing July 1, 2027, with an aggregate principal amount of $850 million, a term loan B credit facility (the “Term B Facility,” and together with the Term A Facility, the “Term Facilities”) maturing July 1, 2029, with an aggregate principal amount of $2,800 million, and a revolving credit facility (the “Revolving Credit Facility,” and together with the Term Facilities, the “Senior Credit Facilities”) maturing July 1, 2027, in an aggregate available amount of $350 million, including a letter of credit sub-facility of up to $50 million. On the Closing Date, the Borrower and certain of its direct and indirect subsidiaries provided a guaranty of all obligations of the Borrower and the other loan parties under the Credit Agreement and the other loan documents, secured cash management agreements and secured hedge agreements with the lenders and/or their affiliates (subject to certain exceptions). The Borrower and the other guarantors have also granted a security interest in substantially all of their assets to secure such obligations. On March 31, 2023, Coherent entered into Amendment No. 1 to the Credit Agreement, which replaced the adjusted LIBOR-based rate of interest therein with an adjusted SOFR-based rate of interest. On April 2, 2024, Coherent entered into Amendment No. 2 to the Credit Agreement, under which the principal amount of term B loans outstanding under the Credit Agreement (the “Existing Term B Loans”) were replaced with an equal amount of new term loans (the “New Term B Loans”) having substantially similar terms as the Existing Term B Loans, except with respect to the interest rate applicable to the New Term B Loans and certain other provisions. On January 2, 2025, Coherent entered into Amendment No. 3 to the Credit Agreement, under which the principal amount of New Term B Loans outstanding under the Credit Agreement were replaced with an equal amount of new term loans (the “New Term B-2 Loans”) having substantially similar terms as the New Term B Loans, except with respect to the interest rate applicable to the New Term B-2 Loans and certain other provisions. The maturity of the New Term B-2 Loans and Revolving Credit Facility was unchanged. 69 Table of Contents On September 26, 2025, the Company entered into Amendment No. 4 (“Amendment No. 4”) and Amendment No. 5 (“Amendment No. 5”) to the Credit Agreement. Under Amendment No. 4, (i) the existing revolving credit commitments were refinanced and replaced with new senior secured revolving credit commitments, (ii) $350 million of senior secured incremental revolving credit commitments were added, increasing the total revolving credit facility to $700 million (the “2025 Revolving Loans”), including a letter of credit sub-facility of up to $100 million, and (iii) a $1,250 million new tranche of senior secured incremental term A loans was added (the “2025 Incremental Term A Loans”), the proceeds of which were used, in part, to repay all outstanding principal, interest and fees of term A loans outstanding under the Credit Agreement (the “Existing Term A Loans”). As amended, the 2025 Revolving Loans and the 2025 Incremental Term A Loans each bear interest at an adjusted SOFR rate subject to a 0.00% floor plus a range of 1.25% to 2.25% based on the Company’s total net leverage ratio. The interest rate applicable to the 2025 Revolving Loans and the 2025 Incremental Term A Loans is initially a SOFR-based rate plus 1.50% as of June 30, 2026. The 2025 Revolving Loans and the 2025 Incremental Term A Loans mature on the earlier of September 26, 2030 or a “Springing Maturity Date,” which is a date that is 91 days prior to the stated maturity of either (i) the Company’s unsecured senior notes or (ii) the term B loans then outstanding if, on such 91st day, the applicable senior notes or term B loans remain outstanding and liquidity is less than (x) $250 million plus (y) the aggregate outstanding principal amount of such notes or term B loans, as applicable. Under Amendment No. 5, the outstanding New Term B-2 Loans were replaced with an equal amount of new term loans (the “New Term B-3 Loans”) having substantially similar terms as the New Term B-2 Loans, except with respect to the interest rate applicable to the New Term B-3 Loans and certain other provisions. As further amended, the New Term B-3 Loans bear interest at a SOFR-based rate (subject to a 0.50% floor) plus 1.75% as of June 30, 2026. The New Term B-3 Loans will mature on July 1, 2029. Debt extinguishment costs related to the termination of the Existing Term Loans of $3 million were expensed in Other expense, net in the Consolidated Statement of Earnings during the twelve months ended June 30, 2026. In relation to the Term Facilities, the Company incurred interest expense, including amortization of debt issuance costs and the benefit of the interest rate cap and swap, of $139 million and $192 million in the years ended June 30, 2026 and June 30, 2025, respectively, which is included in Interest expense in the Condensed Consolidated Statements of Earnings (Loss). Our interest rate cap together with our interest rate swap (through September 30, 2024), reduced interest expense by $17 million and $32 million during the years ended June 30, 2026 and June 30, 2025, respectively. The amortization of debt issuance costs included in interest expense was $17 million in both the years ended June 30, 2026 and 2025. Debt issuance costs are presented as a reduction to debt within the long-term debt caption in the Condensed Consolidated Balance Sheets. As of June 30, 2026, the Company was in compliance with all covenants under the Senior Credit Facilities. The Company had aggregate availability of $664 million under its Revolving Credit Facility as of June 30, 2026. Debt Assumed through Acquisition We assumed the remaining balances of three term loans with the closing of the acquisition of Coherent, Inc., two of which were repaid prior to June 30, 2024. The aggregate principal amount outstanding under the remaining assumed term loan is $14 million as of June 30, 2026 and is for a Facility Construction Loan in Germany due in 2030 that bears interest at 1.55% per annum. Payments are made quarterly. 5.000% Senior Notes due 2029 On December 10, 2021, the Company issued $990 million aggregate principal amount of Senior Notes pursuant to the indenture, dated as of December 10, 2021 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee. The Senior Notes are guaranteed by each of the Company’s domestic subsidiaries that guarantee its obligations under the Senior Credit Facilities. Interest on the Senior Notes is payable on December 15 and June 15 of each year, commencing on June 15, 2022, at a rate of 5.000% per annum. The Senior Notes will mature on December 15, 2029. Beginning December 15, 2024, the Company may redeem the Senior Notes, in whole at any time or in part from time to time, at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. In addition, at any time prior to December 15, 2024, the Company had the ability to (but did not) redeem the Senior Notes, at its option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the Senior Notes redeemed, plus a “make-whole” premium set forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. Notwithstanding the foregoing, prior to December 15, 2024, the Company had the ability to redeem up to 40% of the aggregate principal amount of the Senior Notes using the proceeds of certain equity offerings as set forth in the Indenture, at a redemption price equal to 105.000% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. The Company did not exercise this option. 70 Table of Contents In relation to the Senior Notes, the Company incurred interest expense of $51 million and $50 million in the years ended June 30, 2026 and June 30, 2025, respectively, which is included in Interest expense in the Condensed Consolidated Statements of Earnings (Loss). The Indenture contains customary covenants and events of default, including default relating to, among other things, payment default, failure to comply with covenants or agreements contained in the Indenture or the Senior Notes and certain provisions related to bankruptcy events. As of June 30, 2026, the Company was in compliance with all covenants under the Indenture. Other Credit Facility On June 8, 2026, a certain wholly-owned foreign subsidiary of the Company entered into an unsecured credit facility agreement with a local lender providing for an aggregate line of credit of up to $184 million (based on exchange rates in effect at signing), which is denominated in local currency (the “June 2026 Credit Line”). On June 8, 2026, such subsidiary of the Company utilized part of the June 2026 Credit Line by entering into an unsecured credit working capital facility agreement with such local lender providing for aggregate commitments of $29 million (the “June 2026 Facility”). The June 2026 Facility matures on June 12, 2029 and had $28 million outstanding as of June 30, 2026. Borrowings bear interest at the one-year local currency lending benchmark less 61 basis points, and the interest is payable quarterly. Neither the Company, nor any other of its subsidiaries, is a party to or guarantor of the June 2026 Facility. The June 2026 Facility contains various affirmative and negative covenants that require the borrowers to meet specified financial ratios and financial tests and customary events of default, subject to applicable grace periods, cure periods and thresholds. Note 9. Leases We determine if an arrangement is a lease at inception for arrangements with an initial term of more than 12 months, and classify it as either finance or operating. Finance leases are generally those that allow us to substantially utilize or pay for the entire asset over its estimated useful life. Finance lease assets are recorded in Property, plant and equipment, net, and finance lease liabilities within Other accrued liabilities and Other liabilities on our Consolidated Balance Sheets. Finance lease assets are amortized in operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term, with the interest component for lease liabilities included in interest expense and recognized using the effective interest method over the lease term. Operating leases are leases that do not qualify as finance leases and are recorded in Other assets and Operating lease current liabilities and Operating lease liabilities on our Consolidated Balance Sheets. Operating lease assets are amortized on a straight-line basis in operating expenses over the lease term. Our lease liabilities are recognized based on the present value of the remaining fixed lease payments, over the lease term, using a discount rate of similarly secured borrowings available to the Company. For the purpose of lease liability measurement, we consider only payments that are fixed and determinable at the time of commencement. Any variable payments that depend on an index or rate are expensed as incurred. We account for non-lease components, such as common area maintenance, as a component of the lease, and include it in the initial measurement of our leased assets and corresponding liabilities. Our lease terms and conditions may include options to extend or terminate. An option is recognized when it is reasonably certain that we will exercise that option. Our lease assets also include any lease payments made, and exclude any lease incentives received prior to commencement. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations. 71 Table of Contents The following table presents lease costs, which include leases for arrangements with an initial term of more than 12 months, lease term, and discount rates ($000): Year Ended June 30, 2026 2025 2024 Finance lease cost Amortization of right-of-use assets $ — $ 1,528 $ 1,667 Interest on lease liabilities 845 947 1,040 Total finance lease cost 845 2,475 2,707 Operating lease cost 64,035 59,213 52,909 Sublease income (1,373) — — Total lease cost $ 63,507 $ 61,688 $ 55,616 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 845 $ 947 $ 1,040 Operating cash flows from operating leases 62,996 58,117 50,672 Financing cash flows from finance leases 1,926 1,749 1,584 Assets obtained in exchange for lease liabilities Right-of-use assets obtained in exchange for new operating lease liabilities $ 135,996 $ 51,357 $ 64,385 Weighted-average remaining lease term (in years) Finance leases 5.5 6.5 7.5 Operating leases 5.8 6.2 6.6 Weighted-average discount rate Finance leases 5.6 % 5.6 % 5.6 % Operating leases 6.1 % 6.9 % 6.8 % The following table presents future minimum lease payments, which includes leases for arrangements with an initial term of more than 12 months ($000): Future Years Operating Leases Finance Leases Total Year 1 $ 77,516 $ 2,847 $ 80,363 Year 2 69,533 2,925 72,458 Year 3 60,689 3,006 63,695 Year 4 51,357 3,088 54,445 Year 5 40,652 3,173 43,825 Thereafter 74,763 1,521 76,284 Total minimum lease payments 374,510 16,560 391,070 Less: amounts representing interest 58,300 2,327 60,627 Present value of total lease liabilities $ 316,210 $ 14,233 $ 330,443 72 Table of Contents Note 10. Other Accrued Liabilities The components of other accrued liabilities were as follows ($000): June 30, 2026 2025 Contract liabilities $ 48,098 $ 62,967 Warranty reserve 27,454 32,754 Current liabilities held-for-sale 11,006 57,394 Other accrued liabilities 261,432 182,449 $ 347,990 $ 335,564 Note 11. Employee Benefit Plans Eligible employees of the Company participate in an employee retirement plan. Under the Coherent Corp 401(k) Profit Sharing Plan (“Plan”), we match employee contributions to the plan equal to an amount of 50% of employee contributions up to a maximum of 8% of the employee’s individual earnings subject to IRS limitations. Employees become eligible for participation and Company matching contributions on their first day of employment. The Company’s matching contributions (net of forfeitures) during fiscal 2026, 2025 and 2024 were $14 million, $15 million, and $18 million, respectively. In addition, the Plan has a profit sharing retirement plan contribution for eligible U.S. employees of the Company. These contributions are made at the discretion of the Company’s Board of Directors and were zero for the year ended June 30, 2026 , $1 million in 2025, and $2 million in 2024. Switzerland Defined Benefit Plan The Company maintains a pension plan covering employees of our Swiss subsidiary (the “Swiss Plan”). Employer and employee contributions are made to the Swiss Plan based on various percentages of salary and wages that vary according to employee age and other factors. Employer contributions to the Swiss Plan were $6 million and $5 million for the years ended June 30, 2026 and 2025, respectively. Net periodic pension cost is not material for any year presented. The underfunded pension liability was $22 million and $25 million as of June 30, 2026 and 2025, respectively. The pension adjustment amount recognized in accumulated other comprehensive income (loss) was a $1 million increase and $7 million decrease for the fiscal years ended June 30, 2026 and 2025, respectively. The accumulated benefit obligation was $144 million as of June 30, 2026, compared to $141 million as of June 30, 2025. Other Defined Benefit Plans As a result of the Coherent, Inc. acquisition on July 1, 2022, we assumed all assets and liabilities of defined benefit plans in the U.S., Germany, South Korea, Japan, Spain, and Italy (“other plans”). As is the customary practice with European and Asian companies, the plans are unfunded, with the exception of the Spanish plan which is partially funded. The U.S. qualified plan is also partially funded. Any new employees hired after January 1, 2007, are not eligible for the U.S. qualified and nonqualified plans. Effective August 31, 2018, both of the U.S. plans were amended to freeze all future compensation benefit accruals. Any new employees hired after 2000 are not eligible for the primary German pension plan. For one of the German plans and the U.S. qualified plan, unrealized gains and losses are recognized as a component of other comprehensive income (loss) within shareholders’ equity. For the other plans, we have elected to recognize all actuarial gains and losses on these plans immediately, as incurred. Liabilities and expense for pension benefits are determined using actuarial methodologies and incorporate significant assumptions, including the interest rate used to discount the future estimated cash flows, the expected long-term rate of return on plan assets, and several assumptions relating to the employee workforce (salary increases, retirement age, and mortality). All of these assumptions were based upon management’s judgment, considering all known trends and uncertainties. Actual results that differ from these assumptions would impact future expense recognition and the cash funding requirements of our defined benefit plans. For the other plans, employer contributions were $3 million in both the years ended June 30, 2026 and June 30, 2025, and net periodic pension cost was not material in either year. The underfunded pension liability was $27 million and $37 million as of June 30, 2026 and June 30, 2025, respectively. The pension adjustment amount recognized in accumulated other comprehensive income (loss) was a $1 million increase for both the fiscal years ended June 30, 2026 and June 30, 2025, respectively. The accumulated benefit obligation was $37 million and $47 million as of June 30, 2026 and June 30, 2025, respectively. 73 Table of Contents Estimated future benefit payments under all plans are estimated to be as follows ($000): Year Ended June 30, 2027 $ 11,400 2028 10,500 2029 11,300 2030 12,900 2031 13,700 Next five years 66,600 Note 12. Restructuring Plans 2023 Restructuring Plan On May 23, 2023, the Board of Directors approved the 2023 Plan which includes site consolidations, facilities moves and closures, as well as the relocation and requalification of certain manufacturing facilities. These restructuring actions were intended to realign our cost structure as part of a transformation to a simpler, more streamlined, resilient and sustainable business model. We evaluate restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations (“ASC 420”), and ASC 712, Compensation-Nonretirement Post-Employment Benefits (“ASC 712”). In the year ended June 30, 2026, these activities resulted in net charges of $1 million, primarily for site move costs partially offset by adjustments to employee termination costs. In the year ended June 30, 2025, these activities resulted in $53 million of net charges primarily for impairment losses associated with the sale of our Newton Aycliffe business, impairment of ROU assets, employee termination costs, site move costs and accelerated depreciation. In fiscal 2024, these activities resulted in $27 million of charges primarily for acceleration of depreciation, write-off of property and equipment, and site move costs. Activity and accrual balances for the 2023 Plan were as follows ($000): Severance Asset Write-Offs Other Total Accrual Balance - June 30, 2024 $ 51,061 $ — $ — $ 51,061 Restructuring charges 6,123 24,010 22,864 52,997 Payments (12,954) — — (12,954) Asset write-offs and other — (24,010) (22,864) (46,874) Balance - June 30, 2025 44,230 — — 44,230 Restructuring charges (recoveries) (11,349) 250 11,992 893 Payments (5,336) — — (5,336) Asset write-offs and other 1,035 (250) (11,992) (11,207) Balance - June 30, 2026 $ 28,580 $ — $ — $ 28,580 74 Table of Contents At June 30, 2026, $7 million and $22 million of accrued severance related costs were included in other accrued liabilities and other liabilities on our Consolidated Balance Sheet, respectively, and are expected to result in cash expenditures through fiscal 2028. The current and prior year severance related net charges are primarily comprised of accruals and adjustments for severance and pay for employees being terminated due to the consolidation of certain manufacturing sites, with severance recorded in accordance with ASC 712. For the year ended June 30, 2026 restructuring costs were not material in any segment. For the year ended June 30, 2025, restructuring costs were primarily incurred in the Datacenter & Communications segment. Restructuring charges (recoveries) are recorded in Restructuring charges in our Consolidated Statements of Earnings (Loss). 2025 Restructuring Plan Commencing in the quarter ended March 31, 2025, and as part of the ongoing strategic review of the Company’s business, the Company’s management approved the 2025 Plan. In connection therewith, the Company incurs charges for related severance and benefits, lease and contract termination costs, asset write-offs, facilities move and other restructuring costs. We evaluate restructuring charges in accordance with ASC 420 and ASC 712. In the year ended June 30, 2026, these activities resulted in $62 million of net charges primarily related to write-off of property and equipment, employee termination and site closure costs. In the year ended June 30, 2025, these activities resulted in $107 million of net charges primarily for the write-off of property and equipment and ROU assets, employee and contract termination costs. We expect the restructuring actions to be substantially completed by the end of fiscal 2026. However, the actual timing and costs associated with these restructuring actions may differ from our current expectations and estimates and such differences may be material. Activity and accrual balances for the 2025 Plan were as follows ($000): Severance Asset Write-Offs Other Total Accrual Balance - June 30, 2024 $ — $ — $ — $ — Restructuring charges 23,983 59,068 24,033 107,084 Payments (7,261) (48,574) (4,136) (59,971) Asset write-offs and other — — — — Balance - June 30, 2025 16,722 10,494 19,897 47,113 Restructuring charges 27,583 26,068 8,846 62,497 Payments (20,652) — — (20,652) Asset write-offs and other (1,122) (26,788) (16,512) (44,422) Balance - June 30, 2026 $ 22,531 $ 9,774 $ 12,231 $ 44,536 At June 30, 2026, $23 million of accrued severance related costs were included in other accrued liabilities and are expected to result in cash expenditures primarily through fiscal 2027. The current year severance related net charges are primarily comprised of accruals for severance and pay for employees being terminated due to the consolidation of certain manufacturing and distribution sites as well as workforce reductions, with severance recorded in accordance with ASC 712. At June 30, 2026, total liabilities for asset write-offs and other contract costs of $10 million and $12 million were included in other accrued liabilities and other liabilities, respectively, on our Consolidated Balance Sheet. For the year ended June 30, 2026, restructuring charges were incurred primarily in the Industrial and Corporate segments. For the year ended June 30, 2025, restructuring charges were primarily incurred in the Industrial and Datacenter & Communications segments. Restructuring charges and recoveries are recorded in Restructuring charges in our Consolidated Statements of Earnings (Loss). Note 13. Commitments and Contingencies We have purchase commitments for materials and supplies as part of the ordinary conduct of business. A portion of the commitments are long-term and are based on minimum purchase requirements. Certain short-term raw material purchase commitments have a variable price component which is based on market pricing at the time of purchase. Due to the proprietary nature of some of our materials and processes, certain contracts may contain liquidated damage provisions for early termination. Based upon historical experience and current expectations, we do not believe that a significant amount of liquidated damages 75 Table of Contents are reasonably likely to be incurred under these commitments. As of June 30, 2026, total future purchase commitments were $3.4 billion in fiscal 2027 and $8.4 billion thereafter. Regulatory Matters In January 2025, the Company received an inquiry from the Bureau of Industry and Security (“BIS”) concerning past product sales to Huawei; the Company is cooperating with BIS’s inquiry and conducting an internal review of those sales to determine what products are subject to Export Administrative Regulations (“EAR”) and consequently restricted for export, reexport, and transfer when Huawei is a party to the transaction. The Company has stopped shipping products to Huawei. The Company is currently in discussions with BIS regarding past product sales and cannot predict the outcome of those discussions. While the Company has received requests for additional information in this matter, the Company has not yet received any determination from BIS. In the event that the Company is found to have violated the EAR, the Company may be required to incur significant penalties and/or costs or expense as a result of the inquiry and to comply with, or remedy any violations of these regulations, but at this time, the Company is unable to determine an estimate or range of loss. Note 14. Equity and Redeemable Preferred Stock Common shares issued On March 2, 2026, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with NVIDIA Corporation (“NVIDIA”), pursuant to which the Company issued and sold 7,788,161 shares of Common Stock at a price of $256.80 per share, for aggregate gross proceeds of $2 billion. The transaction was completed as a private placement in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. NVIDIA’s investment will support research and development initiatives, future capacity expansion, and operational capabilities, as Coherent expands its manufacturing footprint. The shares issued to NVIDIA are subject to a contractual lock-up for a period of six months following the closing date, during which NVIDIA may not, without the Company’s prior written consent, directly or indirectly transfer or otherwise dispose of the shares or enter into transactions that transfer the economic risks or benefits of ownership. The Purchase Agreement includes a price protection provision that is effective for a period of six months following execution of the Purchase Agreement. The Company evaluated the price protection provision under applicable U.S. GAAP, including ASC 815, Derivatives and Hedging, and ASC 480, Distinguishing Liabilities from Equity, and determined that the provision is indexed to the Company’s own stock and meets the criteria for equity classification. Accordingly, the price protection provision is not accounted for as a derivative liability and no separate fair value measurement is required subsequent to issuance. Any potential issuance of additional shares or cash settlement pursuant to the price protection provision, if triggered, will be accounted for as an adjustment to equity. Preferred stock As of June 30, 2026, the Company’s amended and restated articles of incorporation authorize the Board of Directors, without shareholder approvals, to issue up to 5 million shares of preferred stock. As of that date, 2.3 million shares of mandatory convertible preferred shares had been previously issued and subsequently converted into shares of the Company’s Common Stock. During the quarter ended December 31, 2025, 75,000 shares and 140,000 shares of previously issued Series B-1 (“Series B-1 Preferred Stock”) and B-2 convertible preferred stock (“Series B-2 Preferred Stock” and, together with the Series B-1 Preferred Stock, the “Series B Preferred Stock”), no par value per share, respectively, were converted into an aggregate of 30.1 million shares of Common Stock. The majority of the Series B-1 and B-2 convertible preferred stock was converted by the holder and the remainder was converted by the Company. No Series B Preferred Stock was outstanding at June 30, 2026. As a result of the conversion, $2.5 billion was reclassified from Mezzanine Equity to Common Stock during the year ended June 30, 2026. Series B Convertible Preferred Stock - Prior to Conversion in the quarter ended December 31, 2025 In March 2021, the Company issued 75,000 shares of Series B-1 Preferred Stock for $10,000 per share, resulting in an aggregate purchase price of $750 million. On July 1, 2022, the Company issued 140,000 shares of Series B-2 Preferred Stock for $10,000 per share and an aggregate purchase price of $1.4 billion. The shares of Series B Preferred Stock were convertible into shares of Coherent Common Stock as follows: •at the election of the holder, each share of Series B Preferred Stock could have been converted into shares of Coherent Common Stock at a conversion price of $85 per share (as it may be adjusted from time to time, the “Conversion Price”); and 76 Table of Contents •at the election of the Company at the then-applicable Conversion Price if the volume-weighted average price of Coherent Common Stock exceeded 150% of the then-applicable Conversion Price for 20 trading days out of any 30 consecutive trading days. The issued shares of Series B Preferred Stock had voting rights, voting as one class with the Coherent Common Stock, on an as-converted basis, subject to limited exceptions. The Series B Preferred Stock was initially measured at fair value less issuance costs, accreted to its redemption value over a 10-year period (using the effective interest method) with such accretion accounted for as deemed dividends and reductions to Net Earnings (Loss) Available to Common Shareholders. Preferred stock dividends are presented as a reduction to Retained earnings on the Consolidated Balance Sheets. The Company entered into an agreement with the holder of the Series B Preferred Stock to waive dividends effective November 20, 2025. Due to the conversion of the Series B Preferred Stock to Common Stock in the quarter ended December 31, 2025, no dividends were declared or paid for the quarters ended December 31, 2025, March 31, 2026 or June 30, 2026. The following table presents dividends per share and dividends recognized: Year Ended June 30, 2026 Year Ended June 30, 2025 Dividends per share to preferred shareholders $ 163 $ 604 Preferred stock dividends ($000) 31,751 123,688 Preferred stock deemed dividends ($000) 3,351 6,238 Note 15. Noncontrolling Interests On December 4, 2023, Silicon Carbide LLC (“Silicon Carbide”), one of the Company’s subsidiaries, completed (i) the sale of 16,666,667 Class A Common Units to Denso Corporation (“Denso”) for $500,000,000 pursuant to an Investment Agreement, dated as of October 10, 2023, by and between Silicon Carbide and Denso and (ii) the sale of 16,666,667 Class A Common Units to Mitsubishi Electric Corporation (“MELCO”) for $500,000,000 pursuant to an Investment Agreement, dated as of October 10, 2023, by and between Silicon Carbide and MELCO (collectively, the “Equity Investments”). As a result of the Equity Investments, the Company’s ownership interest in the Class A Common units of Silicon Carbide LLC was reduced to approximately 75%. Denso and MELCO each own approximately 12.5% of the Class A Common Units of Silicon Carbide. The Equity Investments in Silicon Carbide enables Coherent to increase its available free cash flow to provide greater financial and operational flexibility to execute its capital allocation priorities, as the aggregate $1 billion investment, net of transaction costs, is being and will continue to be used to fund future capital expansion of Silicon Carbide. The following table presents the activity in noncontrolling interests in Silicon Carbide ($000): Year Ended June 30, 2026 2025 Balance-beginning of period $ 353,508 $ 371,392 Share of foreign currency translation adjustments (689) 1,423 Net loss (18,114) (19,307) Balance-end of period $ 334,705 $ 353,508 77 Table of Contents Note 16. Accumulated Other Comprehensive Income (Loss) The changes in AOCI by component, net of tax, for the years ended June 30, 2026, 2025, and 2024 were as follows ($000): Foreign Currency Translation Adjustment Interest Rate Instruments Defined Benefit Pension Plan Total Accumulated Other Comprehensive Income AOCI - June 30, 2023 $ 53,355 $ 56,112 $ 259 $ 109,726 Other comprehensive income (loss) before reclassifications (82,318) 24,948 (6,708) (64,077) Amounts reclassified from AOCI — (45,144) (735) (45,880) Net current-period other comprehensive income (loss) (82,318) (20,196) (7,443) (109,957) Reclass related to noncontrolling interests 2,871 — — 2,871 AOCI - June 30, 2024 (26,092) 35,916 (7,184) 2,640 Other comprehensive income (loss) before reclassifications 409,069 499 (6,064) 403,505 Amounts reclassified from AOCI — (32,397) (287) (32,685) Net current-period other comprehensive income (loss) 409,069 (31,898) (6,351) 370,820 AOCI - Reclass related to noncontrolling interests (1,423) — — (1,423) AOCI - June 30, 2025 381,554 4,018 (13,535) 372,037 Other comprehensive income (loss) before reclassifications (159,065) 6,048 1,865 (151,152) Amounts reclassified from AOCI — (17,462) — (17,462) Net current-period other comprehensive income (loss) (159,065) (11,414) 1,865 (168,614) AOCI - Reclass related to noncontrolling interests 689 — — 689 AOCI - June 30, 2026 $ 223,178 $ (7,396) $ (11,670) $ 204,112 Note 17. Share-Based Compensation The Company grants equity awards pursuant to the Coherent Corp. Omnibus Incentive Plan (as amended and restated, the “Plan”). The Plan was originally approved by the Company's shareholders at the Annual Meeting in November 2018, and was subsequently amended, restated and approved by the Company’s shareholders at the Annual Meetings held in November 2020, November 2023 and November 2024. The Plan provides for the grant of stock options, stock appreciation rights, restricted shares, restricted share units, deferred shares, performance shares and performance units to employees (including officers), consultants and directors of the Company. The maximum number of shares of Coherent Common Stock authorized for issuance under the Plan is limited to 16,615,000 shares of Coherent Common Stock, not including any remaining shares forfeited under the predecessor plans that may be rolled into the Plan. Certain awards under the Plan have certain vesting provisions predicated upon the death, retirement or disability of the grantee. As of June 30, 2026, there were approximately 6.5 million shares available to be issued under the Plan, including forfeited shares from predecessor plans. Certain outstanding awards were granted in fiscal 2024 and fiscal 2025 as employment inducement awards outside the Company’s shareholder-approved equity plans. The Company has an Employee Stock Purchase Plan whereby eligible employees may authorize payroll deductions (subject to certain limitations) of up to 15% (or such lesser amount as may be determined by the plan administrator) of their wages and base salary to purchase shares at an amount which will not be less than 85% of the lower of (i) the fair market value of the common stock on the first trading day of the offering period and (ii) the fair market value of the common stock on the last trading day of the approximately six-month offering period. We record share-based compensation expense for these awards, which requires the recognition of the grant-date fair value of share-based compensation in net earnings. We recognize the share-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. We account for cash-based stock appreciation rights, cash-based restricted share units and cash-based performance share units as liability awards. Share-based compensation expense for the fiscal years ended June 30, 2026, 2025 and 2024 is as follows ($000): 78 Table of Contents Year Ended June 30, 2026 2025 2024 Stock Options and Cash-Based Stock Appreciation Rights $ 7,336 $ 334 $ 1,149 Restricted Share Awards and Cash-Based Restricted Share Unit Awards 97,934 93,223 92,634 Performance Share Awards and Cash-Based Performance Share Unit Awards 77,391 57,767 21,912 Employee Stock Purchase Plan 11,143 9,648 11,200 $ 193,804 $ 160,972 $ 126,895 Stock Options and Cash-Based Stock Appreciation Rights We utilize the Black-Scholes valuation model for estimating the fair value of stock options and cash-based stock appreciation rights. During the fiscal years ended June 30, 2026, 2025 and 2024, no stock options were issued. Stock option and cash-based stock appreciation rights activity during the fiscal year ended June 30, 2026 was as follows: Stock Options Cash-Based Stock Appreciation Rights Number of Shares Weighted Average Exercise Price Number of Rights Weighted Average Exercise Price Outstanding - June 30, 2025 897,096 $ 35.43 25,133 $ 36.93 Exercised (518,994) $ 32.82 (8,695) $ 38.52 Forfeited and Expired (1,566) $ 17.84 — $ — Outstanding - June 30, 2026 376,536 $ 39.10 16,438 $ 36.08 Exercisable - June 30, 2026 376,536 $ 39.10 16,438 $ 36.08 As of June 30, 2026, 2025 and 2024, the aggregate intrinsic value of stock options and cash-based stock appreciation rights outstanding and exercisable was $140 million, $50 million and $61 million, respectively. Aggregate intrinsic value represents the total pretax intrinsic value (the difference between our closing stock price on the last trading day of the year ended June 30, and the option’s exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2026. This amount varies based on the fair market value of the Company’s stock. The total intrinsic value of stock options and cash-based stock appreciation rights exercised during the fiscal years ended June 30, 2026, 2025, and 2024 was $75 million, $36 million, and $25 million, respectively. As of June 30, 2026, there was no unrecognized compensation cost related to non-vested stock options and cash-based stock appreciation rights. Outstanding and exercisable stock options at June 30, 2026 were as follows: Stock Options and Cash-Based Stock Appreciation Rights Outstanding Stock Options and Cash-Based Stock Appreciation Rights Exercisable Number of Weighted Average Remaining Weighted Average Number of Weighted Average Remaining Weighted Average Range of Shares or Contractual Term Exercise Shares or Contractual Term Exercise Exercise Prices Rights (Years) Price Rights (Years) Price $18.07 - $24.34 15,035 0.14 $ 21.67 15,035 0.14 $ 21.67 $24.35 - $35.38 64,381 1.66 $ 34.22 64,381 1.66 $ 34.22 $35.39 - $36.89 203,679 3.36 $ 36.33 203,679 3.36 $ 36.33 $36.90 - $49.90 109,879 2.08 $ 49.03 109,879 2.08 $ 49.03 392,974 2.60 $ 38.97 392,974 2.60 $ 38.97 Restricted Share Awards, Restricted Share Units, and Cash-Based Restricted Share Units Restricted share awards, restricted share units, and cash-based restricted share units compensation expense was calculated based on the number of shares or units expected to be earned by the grantee multiplied by the stock price at the date of grant (for restricted share awards and restricted share units) or the stock price at the period end date (for cash-based restricted share units), and is being recognized over the vesting period. Generally, for awards issued through fiscal 2025, the restricted share awards, restricted share units, and cash-based restricted share units have a three-year tranche vesting provision. Restricted share units granted during fiscal 2026 generally vest over three years, with one-third of the award vesting on the first anniversary of the grant date and the remaining two-thirds vesting in equal quarterly installments over the subsequent two years. There were no restricted share awards issued in the fiscal years ended June 30, 2026, 2025 and 2024, and all previous restricted share awards have been amortized in full. 79 Table of Contents Restricted share unit and cash-based restricted share unit activity during the fiscal year ended June 30, 2026, was as follows: Restricted Share Units Cash-Based Restricted Share Units Number of Units Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value Nonvested - June 30, 2025 3,185,952 $ 61.13 9,699 $ 59.49 Granted 1,213,655 $ 114.31 3,870 $ 95.20 Vested (1,698,871) $ 101.99 (4,723) $ 55.54 Forfeited (294,022) $ 110.98 — $ — Nonvested - June 30, 2026 2,406,714 $ 89.99 8,846 $ 77.22 As of June 30, 2026, total unrecognized compensation cost related to non-vested, restricted share units and cash-based restricted share units was $140 million. This cost is expected to be recognized over a weighted-average period of approximately 2 years. The restricted share unit compensation expense was calculated based on the number of shares expected to be earned, multiplied by the stock price at the date of grant, and is being recognized over the vesting period. The cash-based restricted share unit compensation expense was calculated based on the number of units expected to be earned, multiplied by the stock price at the period-end date, and is being recognized over the vesting period. The total fair value of the restricted share units and cash-based restricted share units granted during the years ended June 30, 2026, 2025 and 2024, was $139 million, $127 million and $110 million, respectively. The total fair value of restricted share awards, restricted share units and cash-based restricted share units vested was $235 million, $185 million and $74 million during the years ended June 30, 2026, 2025 and 2024, respectively. Performance Share Units The Compensation Committee of the Board of Directors of the Company has granted certain executive officers and employees performance share units under the Plan. As of June 30, 2026, we had outstanding grants covering performance periods ranging from 12 to 36 months. These grants are intended to provide continuing emphasis on specified financial performance goals that the Company considers important contributors to the creation of long-term shareholder value. These grants are payable only if the Company achieves specified levels of financial performance during the performance periods. For our relative Total Shareholder Return (“TSR”) performance-based units, which are based on market performance of our stock as compared to the S&P Composite 1500 – Electronic Equipment, Instruments & Components Index, the compensation cost is recognized over the performance period on a straight-line basis, because the grants vest only at the end of the measurement period, and the probability of actual shares expected to be earned is considered in the grant date valuation. As a result, the expense is not adjusted to reflect the actual shares earned. We estimate the fair value of the TSR performance-based units using the Monte-Carlo simulation model. The performance share unit compensation expense was calculated based on the number of shares expected to be earned, multiplied by the stock price at the date of grant, and is being recognized over the vesting period. Performance share unit activity relating to the Plan during the year ended June 30, 2026, was as follows: Performance Share Units Number of Units Weighted Average Grant Date Fair Value Nonvested - June 30, 2025 2,138,134 $ 92.11 Granted 624,116 $ 148.94 Vested (315,066) $ 58.08 Forfeited (72,581) $ 88.17 Performance Adjustments 23,282 58.08 Nonvested - June 30, 2026 2,397,885 $ 110.06 As of June 30, 2026, total unrecognized compensation cost related to non-vested performance share units was $127 million. This cost is expected to be recognized over a weighted-average period of approximately 1.27 years. The total fair value of the performance share units granted during the fiscal years ended June 30, 2026, 2025 and 2024 was $88 million, $88 million and $113 million, respectively. The total fair value of performance share units and cash-based performance share units vested during the fiscal years ended June 30, 2026, 2025 and 2024 was $11 million, $17 million and $14 million, respectively. 80 Table of Contents Note 18. Income Taxes The components of earnings (loss) before income taxes by jurisdiction were as follows ($000): Year Ended June 30, 2026 2025 2024 U.S. loss $ (84,745) $ (445,586) $ (540,048) Non-U.S. income 932,478 539,767 392,401 Earnings (loss) before income taxes $ 847,733 $ 94,181 $ (147,647) The components of the income tax expense (benefit) were as follows ($000): Year Ended June 30, 2026 2025 2024 Current: Federal $ 3,366 $ 3,010 $ 10,119 State 4,903 1,733 181 Foreign 251,313 154,815 103,640 Total Current 259,582 159,558 113,940 Deferred: Federal (54,967) (50,454) (68,955) State (1,633) (7,217) (186) Foreign (142,133) (37,763) (33,682) Total Deferred (198,733) (95,434) (102,823) Total Income Tax Expense $ 60,849 $ 64,124 $ 11,117 Principal items comprising deferred tax assets and liabilities were as follows ($000): June 30, 2026 2025 Deferred income tax assets Inventory capitalization $ 74,414 $ 74,886 Non-deductible accruals 16,761 18,222 Accrued employee benefits 36,183 36,331 Net-operating loss and credit carryforwards 214,632 256,794 Share-based compensation expense 18,860 15,852 Other 9,225 9,564 R&D capitalization 215,663 168,998 Deferred revenue 12,194 15,376 ROU asset 64,962 37,785 Book over tax accumulated depreciation 6,321 — Valuation allowances (193,924) (163,678) Total deferred income tax assets 475,291 470,130 Deferred income tax liabilities Tax over book accumulated depreciation — (14,038) Intangible assets (725,095) (863,484) Interest rate cap (659) (4,000) Tax on unremitted earnings (36,973) (63,383) Outside basis differences (107,470) (142,781) ROU liability (54,067) (31,239) Other (22,203) (9,515) Total deferred income tax liabilities (946,467) (1,128,440) Net deferred income taxes $ (471,176) $ (658,310) The reconciliation of income tax expense at the statutory U.S. federal rate to the reported income tax expense (benefit) in accordance with the guidance in ASU 2023-09 is as follows ($000): 81 Table of Contents Year Ended June 30, 2026 % US Federal Statutory Tax Rate $ 178,024 21 State and local income taxes, net of federal income tax effect (1) 1,694 — Foreign tax effects China: Research and development tax credit (13,245) (2) Tax on foreign unremitted earnings (19,373) (2) Withholding taxes 11,206 1 Other (1,996) — Germany: State and local income taxes (11,029) (1) Loss on sale of shares (16,142) (2) Enacted changes in tax laws or rates (47,451) (6) Other 4,312 1 Hong Kong: Gain on sale of shares (11,242) (1) Other (526) — Korea, Republic of (South): Withholding taxes 9,561 1 Other (5,082) (1) Switzerland: Statutory tax rate difference between Switzerland and United States (13,938) (2) State and local income taxes 9,652 1 Qualified domestic minimum top-up tax 8,939 1 Other 4,039 1 Other foreign jurisdictions 11,186 1 Effect of cross-border tax laws: Global intangible low-taxed income 16,837 2 Other 1,717 — Tax credits Research and development tax credits (16,326) (2) Changes in valuation allowances 37,883 5 Nontaxable or nondeductible items Share-based payment awards (18,949) (2) Other 8,244 1 Changes in unrecognized tax benefits (62,799) (7) Other (4,347) (1) $ 60,849 7 (1) State taxes in California, Kentucky, and Indiana made up the majority (greater than 50 percent) of the tax effect in this category. 82 Table of Contents The reconciliation of income tax expense at the statutory U.S. federal rate to the reported income tax expense (benefit) in accordance with the guidance prior to the adoption of ASU 2023-09 is as follows ($000): Year Ended June 30, 2025 % 2024 % Taxes at statutory rate $ 19,778 21 $ (31,006) 21 Increase (decrease) in taxes resulting from: State income taxes-net of federal benefit (4,265) (5) (22) — Taxes on non U.S. earnings 3,632 4 16,601 (11) Valuation allowance 20,295 22 43,866 (30) U.S. branch income (1,216) (1) 3,226 (2) Noncontrolling interest 4,284 4 1,002 (1) Research and manufacturing incentive deductions and credits (26,396) (28) (41,387) 28 Stock compensation 2,153 2 13,294 (9) GILTI and FDII 13,631 15 (629) — Uncertain tax positions 6,814 7 3,301 (2) Notional interest (10,174) (11) (2,521) 2 Assets held-for-sale 36,895 39 — — Other (1,307) (1) 5,392 (4) $ 64,124 68 $ 11,117 (8) The net income taxes paid (net of refunds received) by jurisdiction is as follows ($000): June 30, 2026 Federal $ 14,882 State 3,274 Foreign China 66,107 Germany 28,368 Switzerland 24,894 Sweden 15,977 Korea, Republic of (South) 13,656 Malaysia 11,314 Other 29,657 $ 208,129 On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. OBBBA includes provisions affecting various aspects of domestic and international taxation applicable to U.S. multinational corporations. The Company has evaluated the provisions effective for fiscal year 2026 and reflected the applicable impacts in its fiscal 2026 income tax provision. Certain provisions of OBBBA become effective in future years and the Company will continue to assess the impact of the legislation on future reporting periods. The Company is partially permanently reinvested and will repatriate earnings for all non-U.S. subsidiaries with cash in excess of working capital needs. Such distributions could potentially be subject to U.S. state tax in certain states and foreign withholding taxes. Foreign currency gains (losses) related to the translation of previously taxed earnings from functional currency to U.S. dollars could also be subject to U.S. tax when distributed. The Company has estimated the associated withholding tax to be $37 million. Additionally, the Company made a final accounting policy election to treat taxes due from future inclusions in U.S. taxable income related to global intangible low tax income (“GILTI”) as a current period expense when incurred. During the fiscal years ended June 30, 2026, 2025, and 2024, cash paid by the Company for income taxes was $208 million, $167 million, and $97 million, respectively. 83 Table of Contents Our foreign subsidiaries in various tax jurisdictions operate under tax holiday arrangements. The impact of the tax holidays on our effective rate is a reduction in the rate of 0.9%, 11.6% and 5.6% for the fiscal years ended June 30, 2026, 2025 and 2024, respectively, and the impact of the tax holidays on diluted earnings per share is $0.04, $0.06, and $0.05 for the fiscal years ended June 30, 2026, 2025, and 2024, respectively. The tax holiday related to Coherent Malaysia Sdn. Bhd. expired for certain business lines during the fiscal year ended June 30, 2026, and will expire for other business lines on July 31, 2028. The tax holiday related to certain business lines of II-VI Laser Enterprise Philippines, Inc. expired during the fiscal year ended June 30, 2026, while the tax holiday for other business lines will expire in December 2027. The 100% tax holiday related to Silicon Carbide Vietnam Limited Liability Company expired during the fiscal year ended June 30, 2026; however, a 50% tax holiday remains in effect through June 30, 2030. Similarly, the tax holiday related to certain business lines of Coherent Vietnam (Dong Nai) Company Limited expired during the fiscal year ended June 30, 2026; however, a 50% tax holiday remains in effect through June 30, 2030. In addition, the tax holiday related to certain business lines of Coherent Singapore Pte. Ltd. expired during the fiscal year ended June 30, 2026. The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2026 ($000): Type Amount Expiration Date Tax credit carryforwards: Federal research and development credits $ 102,973 June 2037-June 2045 Foreign tax credits 13,224 June 2030-June 2036 State tax credits 13,354 June 2026-June 2040 State tax credits (indefinite) 82,435 Indefinite Operating loss carryforwards: Loss carryforwards - federal $ 26,712 June 2027-June 2036 Loss carryforwards - federal (indefinite) 1,539 Indefinite Loss carryforwards - state 350,496 June 2027-June 2046 Loss carryforwards - state (indefinite) 72,869 Indefinite Loss carryforwards - foreign 15,715 June 2027-June 2041 Loss carryforwards - foreign (indefinite) 32,883 Indefinite The Company has recorded a valuation allowance against the majority of the foreign and state loss and credit carryforwards, certain U.S. credit carryforwards and the majority of state credit carryforwards. The Company’s U.S. federal loss carryforwards, federal research and development credit carryforwards, foreign tax credits, and certain state tax credits resulting from the Company’s acquisitions are subject to various annual limitations under Section 382 of the U.S. Internal Revenue Code. Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2026, 2025 and 2024 were as follows ($000): Year Ended June 30, 2026 2025 2024 Beginning balance $ 124,008 $ 116,697 $ 115,180 Increases in current year tax positions 6,800 9,660 5,168 Settlements — — (2,970) Expiration of statute of limitations (67,049) (2,349) (681) Ending balance $ 63,759 $ 124,008 $ 116,697 The Company classifies all estimated and actual interest and penalties as income tax expense. During fiscal years 2026, 2025 and 2024, there was $(4.1) million, $2.0 million and $2.3 million of interest and penalties expense (benefit) within income tax expense, respectively. The Company had $5 million, $9 million and $7 million of interest and penalties accrued at June 30, 2026, 2025 and 2024, respectively. The Company has classified the uncertain tax positions as non-current income tax liabilities, as the amounts are not expected to be paid within one year. The majority of the liability can be offset by credit carryforwards and would not impact cash taxes. Including tax positions for which the Company determined that the tax position would not meet the more likely than not recognition threshold upon examination by the tax authorities based upon the technical merits of the position, the total estimated unrecognized tax benefit that, if recognized, would affect our effective tax rate, was approximately $8 million, $20 million and $19 million at June 30, 2026, 2025 and 2024, respectively. For the years ended June 30, 2026, June 30, 2025, and June 30, 2024, due to the U.S. valuation allowance, a large portion of our unrecognized tax benefit will no longer impact the tax rate if recognized. The Company expects a decrease of $3 million of unrecognized tax benefits during the next 12 months due to the expiration of statutes of limitation. 84 Table of Contents Fiscal years 2023 to 2026 remain open to examination by the Internal Revenue Service, fiscal years 2022 to 2026 remain open to examination by certain state jurisdictions, and fiscal years 2012 to 2026 remain open to examination by certain foreign taxing jurisdictions. The Company is currently under examination by the Internal Revenue Service for the fiscal year ended June 30, 2024; New York City for the years ended June 30, 2023 through June 30, 2024; New York for the years ended June 30, 2023 through June 30, 2024; Massachusetts for the year ended June 30, 2023; for certain subsidiary companies in Vietnam for the years ended June 30, 2017 through June 30, 2020; Singapore for the year ended June 30, 2023; United Kingdom for the years ended June 30, 2022 through June 30, 2023; and Germany for the years ended September 30, 2012 through June 30, 2021. The Company believes its income tax reserves for these tax matters are adequate. Note 19. Earnings Per Share Basic earnings (loss) per common share is computed by dividing net earnings available to the common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share is computed by dividing the diluted earnings (loss) available to the common shareholders by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares whose effect would have been anti-dilutive are excluded from the computation of diluted earnings (loss) per common share. The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. For the year ended June 30, 2026, diluted shares outstanding include the dilutive effect of the potential shares of Coherent Common Stock issuable from performance and restricted shares and the potentially dilutive effect of the shares of Coherent Common Stock issuable upon conversion of the Series B Convertible Preferred Stock, calculated using the If-Converted method through their respective conversion dates, as the effect was dilutive. For the years ended June 30, 2025 and June 30, 2024, as the Company was in a net loss position, there were no dilutive shares. The following is a reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share computations for the periods presented ($000, except per share): Year Ended June 30, 2026 2025 2024 Numerator Net earnings (loss) attributable to Coherent Corp. $ 804,998 $ 49,364 $ (156,154) Deduct Series B dividends and deemed dividends (35,102) (129,926) (123,357) Basic earnings (loss) available to common shareholders $ 769,896 $ (80,562) $ (279,511) Effect of dilutive securities: Add back Series B preferred stock dividends $ 31,751 $ — $ — Add back Series B deemed dividends 3,351 — — Diluted earnings (loss) available to common shareholders $ 804,998 $ (80,562) $ (279,511) Denominator Weighted average shares 177,269 154,755 151,642 Effect of dilutive securities: Common stock equivalents 5,699 — — Series B Convertible Preferred Stock 12,419 — — Diluted weighted average common shares 195,387 154,755 151,642 Basic earnings (loss) per common share $ 4.34 $ (0.52) $ (1.84) Diluted earnings (loss) per common share $ 4.12 $ (0.52) $ (1.84) 85 Table of Contents The following table presents potential shares of common stock excluded from the calculation of diluted net earnings (loss) per share, as their effect would have been anti-dilutive (000): Year Ended June 30, 2026 2025 2024 Series B Convertible Preferred Stock — 29,103 27,691 Common stock equivalents — 4,548 2,940 Total anti-dilutive shares — 33,651 30,631 Note 20. Segment and Geographic Reporting The Company’s businesses are organized and managed into segments based on similarities in products and services. Segment determination reflects how the CODM evaluates the Company’s operations for decision-making operating decisions and performance assessment. Effective July 1, 2025, the Company realigned its organizational structure and now identifies multiple operating segments, which are aggregated into two reportable segments: (i) Datacenter & Communications, and (ii) Industrial. In accordance with ASC 280, Segment Reporting, the aggregation of the Company’s segments is based on similarities in economic characteristics, product and service types, production processes, type or class of customers, and distribution methods. Previously, financial results had been reported in the following three segments: (i) Networking, (ii) Materials, and (iii) Lasers. Comparative prior period segment information has been recast to conform to the new segments. The Datacenter & Communications segment has locations in the United States, Australia, China, Germany, Malaysia, South Korea, Sweden, Switzerland, Thailand, the Philippines and Vietnam. This segment sells primarily into the datacenter and communications market, including transceivers, co-packaged optics, optical circuit switches, systems, subsystems, modules, components, optics, and semiconductor devices. The Industrial segment has locations in the United States, China, Finland, Germany, Italy, Japan, Malaysia, Singapore, South Korea, Spain, Sweden, Taiwan, the Philippines, the United Kingdom and Vietnam. This segment sells primarily into the industrial market, which includes lasers, systems, optics, components and materials for semiconductor and display capital equipment, precision manufacturing, life sciences, consumer electronics, scientific research and automotive and market applications. Our CODM, who has been identified as our Chief Executive Officer, receives and reviews financial information based on the operating segments that are aggregated into the two reportable segments. Our CODM evaluates each segment’s performance and allocates resources based on segment revenue and segment profit, as our CODM believes segment profit is a more comprehensive profitability measure for each operating segment. Our CODM is regularly provided with segment revenue and segment profit information to assess performance of each segment. Segment profit includes operating expenses directly managed by operating segments, including research and development, direct sales, marketing and administrative expenses. Segment profit does not include share-based compensation, acquisition or integration related costs, amortization and impairment of acquisition-related intangible assets, restructuring charges, impairment charges on assets held-for-sale, gain on sale of businesses and certain other charges or gains. Additionally, we do not allocate Corporate strategic research and development, strategic marketing and sales expenses and shared general and administrative expenses, as these expenses are not directly attributable to our operating segments. The segments are managed separately due to the unique products and markets that each serves. The Company derives its reportable segment results based on how financial information is reported and aggregated within its management reporting system. The CODM uses segment profit as a key metric in the forecasting process and in making decisions related to capital allocation and resource deployment across segments. The accounting policies are consistent across each segment. Assets by segment are not a measure used to assess the performance of the company by the CODM and thus are not reported in our disclosures. The following table summarizes selected financial information of our operations by segment and reconciles segment profit to consolidated earnings (loss) before income taxes for the periods presented ($000): 86 Table of Contents Year Ended June 30, 2026 2025 2024 Segment revenue Datacenter & Communications $ 5,274,629 $ 3,755,164 $ 2,631,369 Industrial 1,843,552 2,054,951 2,076,319 Total segment revenue 7,118,181 5,810,115 4,707,688 Intersegment revenue Datacenter & Communications 40,735 38,584 36,504 Industrial 99,643 77,108 55,098 Elimination of intersegment revenue (140,378) (115,692) (91,602) Total intersegment revenue — — — Segment cost of goods sold and operating expenses (1) Datacenter & Communications 3,985,646 2,889,961 2,167,905 Industrial 1,520,422 1,724,569 1,833,711 Total segment cost of goods sold and operating expenses 5,506,068 4,614,530 4,001,616 Segment profit Datacenter & Communications 1,329,719 903,787 499,968 Industrial 422,773 407,490 297,706 Total segment profit 1,752,492 1,311,277 797,674 Unallocated Corporate expenses Corporate and centralized function costs (2) (296,748) (274,333) (179,624) Share-based compensation (193,804) (160,972) (126,895) Restructuring costs (3) (63,390) (160,081) (27,054) Impairment of assets held-for-sale (64,404) (84,988) — Integration, site consolidation and other costs (4) (80,084) (38,237) (79,820) Amortization of intangibles (280,334) (302,788) (288,160) Interest expense (190,267) (243,251) (288,475) Gain on sale of business 124,133 — — Other income, net 140,139 47,554 44,707 Earnings (loss) before income taxes $ 847,733 $ 94,181 $ (147,647) (1)The significant expense category amount aligns with the segment-level information that is regularly provided to the CODM. Segment cost of goods sold and operating expenses primarily include manufacturing costs, labor and research and development costs, and exclude expenses and credits that are included in the Unallocated corporate expenses category. (2)We do not allocate corporate and centralized function costs that are not directly attributable to our operating segments. (3)See Note 12. Restructuring Plans for further information. (4)Integration, site consolidation and other costs are $80 million and $38 million in the years ended June 30, 2026 and June 30, 2025, respectively, and primarily consist of consulting and legal costs related to initiatives to integrate recent acquisitions into common technology systems, to divest businesses and simplify legal entity structure. Integration and site consolidation costs in the year ended June 30, 2024 primarily include consulting costs related to initiatives to integrate recent acquisitions into common technology systems and simplify legal entity structure, and employee severance and retention and other costs related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan. The following tables summarizes depreciation and amortization by segment ($000): 87 Table of Contents Year Ended June 30, Depreciation and amortization 2026 2025 2024 Datacenter & Communications $ 212,560 $ 209,293 $ 213,693 Industrial 304,960 339,377 340,601 Corporate and shared services 4,375 4,928 5,467 Total depreciation and amortization $ 521,895 $ 553,598 $ 559,761 Geographic information for revenues, by location of the customer’s headquarters, were as follows ($000): Revenues Year Ended June 30, 2026 2025 2024 North America $ 4,633,696 $ 3,564,846 $ 2,622,569 Europe 814,176 698,800 714,282 China 813,377 680,110 621,918 Japan 390,373 390,610 340,863 Rest of World 466,559 475,749 408,056 Total $ 7,118,181 $ 5,810,115 $ 4,707,688 Major Customers One major customer accounted for 20%, 10%, and 10% of consolidated revenue during fiscal 2026, 2025 and 2024, respectively. A second major customer accounted for 12% of consolidated revenue during fiscal 2026. A third major customer accounted for 12% of consolidated revenue during fiscal 2025. Revenue from these customers was primarily attributable to our Datacenter & Communications segment. Geographic information for long-lived assets by country, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, were as follows ($000): Long-Lived Assets June 30, 2026 2025 United States $ 1,394,823 $ 1,092,389 Non-United States China 968,796 402,960 Malaysia 473,786 196,543 Germany 189,819 189,281 Vietnam 119,145 65,565 Sweden 98,517 51,032 Switzerland 68,031 49,602 Philippines 35,754 25,406 United Kingdom 19,479 20,594 Korea 13,704 16,037 Australia 14,516 9,014 Taiwan 4,266 6,063 Other 31,680 23,044 Total Non-United States 2,037,493 1,055,141 $ 3,432,316 $ 2,147,530 88 Table of Contents Note 21. Fair Value of Financial Instruments The FASB defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous markets for the asset and liability in an orderly transaction between market participants at the measurement date. We estimate fair value of our financial instruments utilizing an established three-level hierarchy in accordance with U.S. GAAP. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows: •Level 1 – Valuation is based upon unadjusted quoted prices for identical assets or liabilities in active markets. •Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. •Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurements. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. On February 23, 2022, we entered into an interest rate cap (the “Cap”) with an effective date of July 1, 2023. On March 20, 2023, we amended the Cap to replace the current reference rate (LIBOR) with SOFR, to be consistent with Amendment No. 1 to the Credit Agreement. See Note 8. Debt for further information. The Cap manages our exposure to interest rate movements on a portion of our floating rate debt. The Cap provides us with the right to receive payment if one-month SOFR exceeds 1.92%. Beginning in July 2023, we began to pay a fixed monthly premium based on an annual rate of 0.853% for the Cap. On September 1, 2024, we increased the notional amount from $500 million to $1,500 million. The fair value of the interest rate cap of $3 million and $17 million is recognized in the Consolidated Balance Sheet within Prepaid and other current assets as of June 30, 2026 and June 30, 2025. Cash flows from hedging activities are reported in the Consolidated Statements of Cash Flows in the same classification as the hedged item, generally as a component of cash flows from operations. The Cap, as amended, is designed to mirror the terms of the Credit Agreement as amended on March 31, 2023. We designated the Cap as a cash flow hedge of the variability of the SOFR based interest payments on the Term Facilities. Every period over the life of the hedging relationship, the entire change in fair value related to the hedging instrument will first be recorded within AOCI. Amounts accumulated in AOCI are reclassified into interest expense in the same period or periods in which interest expense is recognized on the Credit Agreement, or its direct replacement. The fair value of the Cap is determined using widely accepted valuation techniques and reflects the contractual terms of the Cap including the period to maturity, and while there are no quoted prices in active markets, it uses observable market-based inputs, including interest rate curves. The fair value analysis also considers a credit valuation adjustment to reflect nonperformance risk of both the Company and the single counterparty. The Cap is classified as a Level 2 item within the fair value hierarchy. We estimated the fair value of the Senior Notes and the Term Facilities (“Debt Facilities”) based on quoted market prices as of the last trading day prior to June 30, 2026; however, the Debt Facilities have only a limited trading volume and as such this fair value estimate is not necessarily the value at which the Debt Facilities could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 2. The carrying values of the Debt Facilities are net of unamortized discount and issuance costs. See Note 8. Debt for details on the Company’s Debt Facilities. The fair value and carrying value of the Debt Facilities were as follows ($000): June 30, 2026 June 30, 2025 Fair Value Carrying Value Fair Value Carrying Value Senior Notes $ 974,437 $ 986,057 $ 973,190 $ 985,034 Term A Facility 1,142,051 1,134,859 632,960 616,234 Term B Facility 1,082,030 1,058,772 2,108,938 2,065,880 Our borrowings, including our lease obligations and the Debt Facilities, are considered Level 2 among the fair value hierarchy. Cash and cash equivalents are considered Level 1 among the fair value hierarchy and approximate fair value because of the short-term maturity of those investments. At June 30, 2026, time deposits of $825 million, with maturities of one year or less, are recorded in Short-term investments on the Consolidated Balance Sheet are considered Level 1 among the fair value hierarchy and approximate fair value because of the short-term maturity of those investments. 89 Table of Contents At June 30, 2026, total restricted cash was $606 million, which includes $604 million held by Silicon Carbide LLC and restricted for use only by that subsidiary, and $2 million of cash restricted for other purposes in other entities. At June 30, 2025, total restricted cash was $724 million, which includes $720 million of cash held by Silicon Carbide LLC and restricted for use only by that subsidiary, and $4 million of cash restricted for other purposes in other entities. The restricted cash is invested in money market accounts and time deposits, with maturities of one year or less, that are held-to-maturity, are considered Level 1 among the fair value hierarchy and approximate fair value. Restricted cash that is expected to be spent and released from restriction after 12 months is classified as non-current on the Consolidated Balance Sheets. We, from time to time, purchase foreign currency forward exchange contracts that permit us to sell specified amounts of these foreign currencies for pre-established U.S. dollar amounts at specified dates that represent assets or liabilities on the balance sheets of certain subsidiaries. These contracts are entered into for the purpose of limiting translational exposure to changes in currency exchange rates and which otherwise would expose our earnings, on the revaluation of our aggregate net assets or liabilities in respective currencies, to foreign currency risk. At June 30, 2026, we had one foreign currency forward contract recorded at fair value. The fair values of these instruments, when outstanding, are measured using valuations based upon quoted prices for similar assets and liabilities in active markets (Level 2) and are valued by reference to similar financial instruments, adjusted for credit risk and restrictions and other terms specific to the contracts. Realized losses related to this contract for the year ended June 30, 2026 were $2 million, realized gains related to these contracts for the year ended June 30, 2025 were $16 million, and realized losses related to these contracts for the year ended June 30, 2024 were $15 million, and were included in Other income, net in the Consolidated Statements of Earnings (Loss). Our non-financial assets, such as goodwill, intangible assets, and property, plant and equipment, are assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. See Note 1. Nature of Business and Summary of Significant Accounting Policies for further information. Note 22. Subsequent Events On August 12, 2026, a wholly-owned foreign subsidiary of the Company entered into an unsecured credit facility with local lenders providing for aggregate commitments of approximately $945 million (based on exchange rates in effect at signing). The facility consists of a local currency tranche with a sublimit equivalent to 470 million U.S. Dollars and a U.S. Dollar tranche with sublimit of $475 million (the “August 2026 Facility”). The August 2026 Facility matures 36 months from the date of first utilization and was undrawn as of August 14, 2026. Borrowings may be used to fund working capital and other permitted operating requirements of the borrower, including the repayment of existing intercompany working capital loans. Borrowings bear interest at variable rates based on the applicable benchmark rate for the borrowed currency, including three-month Term SOFR plus 20 basis points for U.S. Dollar denominated loans and the one-year local currency lending benchmark less 71 basis points for local currency denominated loans, in each case subject to customary adjustments. Interest is payable quarterly. Neither the Company, nor any other of its subsidiaries, is a party to or guarantor of the August 2026 Facility. The August 2026 Facility contains various affirmative and negative covenants, financial ratio requirements, and events of default, each subject to applicable thresholds, grace periods and cure provisions. 90 Table of Contents SCHEDULE II COHERENT CORP. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED JUNE 30, 2026, 2025, AND 2024 (IN THOUSANDS OF DOLLARS) Balance at Beginning of Year Charged to Expense Charged to Other Accounts Assets Held-For-Sale Deduction from Reserves Balance at End of Year YEAR ENDED JUNE 30, 2026: Allowance for doubtful accounts $ 12,189 $ 6,042 $ — $ (13) $ (5,025) (2) $ 13,193 Warranty reserves $ 32,754 $ 24,404 $ — $ (869) $ (28,835) $ 27,454 Deferred tax asset valuation allowance $ 163,678 $ 48,095 $ 277 (1) $ (18,126) $ — $ 193,924 YEAR ENDED JUNE 30, 2025: Allowance for doubtful accounts $ 9,511 $ 8,181 $ — $ (117) $ (5,386) (2) $ 12,189 Warranty reserves $ 44,193 $ 26,352 $ — $ (4,299) $ (33,492) $ 32,754 Deferred tax asset valuation allowance $ 154,830 $ 15,413 $ 3,577 (1) $ (10,142) $ — $ 163,678 YEAR ENDED JUNE 30, 2024: Allowance for doubtful accounts $ 8,005 $ 5,161 $ — $ — $ (3,655) (2) $ 9,511 Warranty reserves $ 47,563 $ 34,362 $ — $ — $ (37,732) $ 44,193 Deferred tax asset valuation allowance $ 97,180 $ 57,968 $ (318) (1) $ — $ — $ 154,830 (1) Primarily related to currency translation adjustments. (2) Primarily relates to write-offs of accounts receivable. 91 Table of Contents