New York, Feb 6, 2026, 12:30 EST — Regular session
- Coherent shares jump roughly 7% following upbeat outlook and a spate of target price upgrades
- For Q3, the company projects revenue between $1.70 billion and $1.84 billion, with adjusted EPS ranging from $1.28 to $1.48
- Analysts highlight clearer demand trends in datacenter optics, though forecasts stay cautious
Coherent Corp shares climbed roughly 7.3% to $224.59 during midday trading Friday, bouncing back after analysts raised price targets following the photonics firm’s quarterly earnings and guidance.
This matters because Coherent occupies a tight spot in the supply chain, often seen as a barometer for high-speed optical link spending in datacenters. When investors look for concrete signs of orders, not just chatter about expansions, they often turn to stocks like this.
That sheds light on the whipsaw. Coherent topped expectations in its fiscal Q2, but shares plunged right after as investors weighed the outlook against lofty targets. 1
Coherent posted fiscal Q2 revenue of $1.69 billion and adjusted (non-GAAP) EPS of $1.29, which excludes certain acquisition and restructuring expenses. Revenue from Datacenter & Communications hit $1.21 billion, while Industrial brought in $477.6 million. Looking ahead to fiscal Q3, the company expects revenue between $1.70 billion and $1.84 billion, with adjusted EPS projected from $1.28 to $1.48. The guidance factors in a small revenue contribution from a Munich-based tools unit sold at the end of January. CEO Jim Anderson highlighted “strong demand in our datacenter and communications segment.” 2
After the earnings release, analysts wasted no time. Mike Genovese at Rosenblatt bumped his price target up to $300. Needham’s Ryan Koontz held firm on a Buy rating with a $235 target, Benzinga reported. Koontz noted that Coherent’s execution “steadily improving,” but also pointed out that growth “lags super-cycle expectations,” acknowledging the high optimism already priced in. 3
Stifel raised its price target to $235 from $220, maintaining a Buy rating. The firm highlighted strong demand for 800-gigabit and 1.6-terabit optical transceivers — the high-speed modules that transmit data over fiber — and noted the company’s efforts to boost manufacturing capacity with 6-inch indium phosphide (InP) wafers, a key material in optical chips. 4
JPMorgan’s Samik Chatterjee bumped his price target to $245 from $215, maintaining an Overweight rating. He pointed to fresh wins and clearer demand outlook in a note reported by TheFly. 5
A recent SEC filing revealed that Coherent submitted its earnings release along with an investor presentation in an 8-K after reporting the quarter’s results. 6
But the rally isn’t without complications. Industrial demand lags behind the datacenter segment, and the company is stepping up investment to boost capacity. That ramp could tighten cash flow if orders falter or clients delay shipments. The wide guidance range leaves room for ongoing debate.
Next on the docket: March quarter results. Investors want to see if orders for the fastest optical gear are still climbing and whether management is sticking to its capacity plans. The next earnings report is set for May 13. 7
