New York, January 25, 2026, 17:44 (EST) — Market closed.
- Coherent shares dropped 2.9% on Friday, closing at $196.94.
- Traders are eyeing Monday for moves in rate-sensitive tech as they brace for Coherent’s upcoming earnings report.
- Coming up: the Fed’s January decision midweek, followed by Coherent’s quarterly report on Feb. 4.
Shares of Coherent Corp. fell 2.9% to close at $196.94 on Friday, swinging between $189.50 and $204.70 during the session.
The pullback is significant as Coherent has turned into a popular play on the AI data-center buildout — focusing on the optics and materials that enable faster connections and more powerful chips. Given stretched valuations in tech, even slight changes in rates or forecasts can send these stocks moving quickly.
Coherent said it will release its quarter-ending Dec. 31 results on Wednesday, Feb. 4, after the New York Stock Exchange closes. A webcast will follow at 4:30 p.m. ET. This event marks the next key catalyst for a stock that’s seen big swings this month. 1
Friday’s trading was choppy. The Dow dropped 0.58%, while the Nasdaq managed a 0.28% gain. Intel tumbled 17% after issuing a weak outlook, underscoring that AI-driven demand now faces a “show-me” test. “We’re feeling pretty good, but mindful we might have some significant twists and turns,” said Jason Blackwell, chief investment strategist at Focus Partners Wealth. 2
Analysts have jumped in with fresh targets. On Thursday, Stifel bumped its price target for Coherent to $220 from $168, maintaining a Buy rating. The firm highlighted a “step-function increase in networking intensity”—referring to the surge in data flowing between AI chips and servers—as new AI systems push traffic higher. Stifel also noted that sector valuations are at “multi-year, if not historical, highs.” 3
Susquehanna’s Mehdi Hosseini raised his price target on Coherent to $235 from $160 on Thursday, keeping a Positive rating. This move adds to a string of recent target increases for the stock. 4
Coherent has been pushing product momentum as well. This month, it teamed up with quantum-tech company Quside to showcase a mass-producible “quantum entropy” source — the kind of randomness essential for encryption keys — built using Coherent’s VCSEL (vertical-cavity surface-emitting laser) manufacturing. Giovanni Barbarossa, Coherent’s Chief Strategy Officer, highlighted that “VCSEL technology has already demonstrated its reliability and scalability across datacenters.” 5
Investors tuning into the earnings report will focus less on flashy headlines and more on core details: are orders steady in networking? Do margins remain intact? And can the company keep turning demand into cash as it grows?
The macro calendar is packed. The Federal Reserve kicks off its first policy meeting of the year on Jan. 27-28, with a decision set for Jan. 28. Expectations around rates continue to shape the valuations investors assign to high-growth hardware and AI-related suppliers. 6
But there’s a catch. Coherent’s shares already reflect high expectations for strong execution, with the stock riding sentiment nearly as much as actual results. If there’s any sign that AI-driven spending is cooling off or pricing pressure is intensifying, the stock could take a sharper hit than the rest of the market.
Coherent shares will start trading again on Monday. Key upcoming events include the Fed decision on Jan. 28 and Coherent’s earnings report on Feb. 4. Investors will be focused on management’s comments regarding AI infrastructure demand and the speed of networking upgrades.
