Direct Answer
65 SEC filers are classified under the Standard Industrial Classification codes that describe the photonics industry, and their latest annual reports show $560.9 billion of combined revenue and a median operating margin of -2.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Photonics companies make components and systems that generate, shape and detect light for communications, sensing, medical and industrial use. Growth is tied to data center optics, lasers and sensing demand. The first numbers to compare across companies here are revenue by market, gross margin and backlog.
Key Industry Metrics
- Revenue by market: Sales divided among communications, industrial, medical and sensing uses. It shows which markets drive growth, and data center optics can behave differently from lasers for factories.
- Gross margin: Revenue left after components, assembly and yield losses. Specialized products and scale support it, while price competition and underused capacity reduce it.
- Backlog: Contracted work waiting to be delivered. It gives visibility, though orders for communications parts can change quickly with customers' build plans.
- R&D intensity: Money spent on developing new products as a share of revenue. Photonics advances fast, so spending sustains competitiveness, but it should lead to new products and share.
- Customer concentration: The share of revenue from a few large customers. Communications buyers order in large amounts, so one program change can have an outsized effect.
Primary Macro Drivers
- AI data center optical demand: AI clusters need many optical links, so data center build-outs drive revenue by market and backlog for optical parts.
- Industrial and medical laser use: Factories and clinics using lasers for cutting, marking and surgery buy components and systems, supporting steady orders.
- Sensing and lidar: Cars and machines using light-based sensing add laser and detector content, opening new revenue streams but with long qualification periods.
- Research funding: Government and academic funding for optics and quantum work supports orders from laboratories and development programs.
Major Risks
- Cyclical demand: Orders follow electronics and industrial activity, so downturns reduce revenue and utilization quickly; watch backlog and revenue by market.
- Customer concentration: A few large buyers account for much of sales, so one program change moves results; watch top-customer share and backlog.
- Competition: Rivals including in-house suppliers pressure price and share in standard parts; watch gross margin and research intensity.
- Technology transitions: New approaches such as integrated photonics can shift value among suppliers; watch research spending, backlog and product mix.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Photonics Filers in the SEC Record
65 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3827, 3674. Their latest fiscal years end between 2025 and 2026, and together they reported $560.9 billion of revenue. Median revenue growth over the prior year was 20.9%. Median operating margin was -2.1% and median net margin -1.6%. Median total liabilities were 35% of total assets, and 30 of 65 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Nvidia Corp | $215.9 billion | 65.5% | 60.4% | 55.6% | FY 2026 |
| Broadcom Inc. | $63.9 billion | 23.9% | 39.9% | 36.2% | FY 2025 |
| Intel Corp | $52.9 billion | -0.5% | -4.2% | -0.5% | FY 2025 |
| Micron Technology Inc | $37.4 billion | 48.9% | 26.1% | 22.8% | FY 2025 |
| Advanced Micro Devices Inc | $34.6 billion | 34.3% | 10.7% | 12.5% | FY 2025 |
| Applied Materials Inc | $28.4 billion | 4.4% | 29.2% | 24.7% | FY 2025 |
| Texas Instruments Inc | $17.7 billion | 13.0% | 34.1% | 28.3% | FY 2025 |
| Nxp Semiconductors N.V. | $12.3 billion | -2.7% | 24.8% | 16.5% | FY 2025 |
The 8 largest of 65 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Photonics guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Photonics industry?
Key performance indicators for the Photonics industry include: Revenue by market, Gross margin, Backlog, R&D intensity, Customer concentration. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Photonics industry?
The Photonics industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Photonics industry?
The primary risks for Photonics companies include: Cyclical demand, Customer concentration, Competition, Technology transitions. Investors should assess each company's exposure to these factors and its track record of navigating them.