New York, Feb 7, 2026, 20:02 EST — Market closed.
- Coherent jumped 8.8% to finish at $227.68 on Friday, shaking off a choppy ride after earnings.
- Texas handed out a $14.1 million semiconductor grant to support Coherent’s indium phosphide wafer initiative.
- Following the company’s quarterly numbers and guidance, JPMorgan and Stifel bumped up their price targets.
Coherent Corp (NYSE:COHR) rallied 8.8% Friday, finishing the day at $227.68, stretching its recovery from a recent post-earnings dip. Traders digested news of a Texas semiconductor grant and a round of analyst price target bumps.
U.S. markets won’t reopen until Monday, leaving the stock poised after fresh state-backed manufacturing news and some sharper numbers to digest. It’s a name known for sharp swings whenever sentiment flips.
Why this matters: Coherent is a key supplier for data-center networking hardware, with customers pressing for speedier optical links as AI workloads ramp up. Traders are weighing how much demand will hold up and whether capacity can keep pace, looking beyond just one quarter.
Texas Governor Greg Abbott announced Friday that Coherent will get a $14,076,031 grant from the Texas Semiconductor Innovation Fund, with the goal of speeding up indium phosphide wafer manufacturing in Sherman. Abbott said the project is tied to over $154 million in capital investment, and described Texas as “the new frontier for technological innovation.” Beck Mason, executive vice president for Coherent’s semiconductor devices, said the grant gives a boost to building what he called the “world’s first 6-inch” indium phosphide wafer facility in Texas. Texas.gov
JPMorgan’s Samik Chatterjee bumped his price target up to $245 from $215, maintaining an Overweight rating. The note, published by TheFly, cited “new wins and enhanced demand visibility.” TipRanks
Stifel bumped its price target up to $235 from $220 and kept its Buy call. The broker highlighted fiscal third-quarter revenue and earnings guidance topping Street expectations.
Laser and optics supplier Coherent reported a 17% jump in second-quarter revenue from a year ago, hitting $1.69 billion. CEO Jim Anderson pointed to “strong demand” in datacenter and communications, and CFO Sherri Luther said capital spending will keep climbing as the company pushes to boost capacity. Coherent Inc
Coherent put out guidance for the March quarter, calling for revenue between $1.70 billion and $1.84 billion, and non-GAAP EPS in a range of $1.28 to $1.48. The company expects its non-GAAP gross margin to land somewhere between 38.5% and 40.5%. Non-GAAP numbers, as usual, exclude certain charges that hit GAAP earnings, like deal expenses and some non-cash items.
It’s been a choppy stretch for Coherent. Shares swung from $175.24 to $211 during Thursday’s session, then bounced between $213 and $234 on Friday, daily trading data show.
Coherent is once again lumped in with optics stocks like Lumentum and Ciena—names traders use as stand-ins for data-center expansions. When the AI trade loses steam, that connection can bite.
The upside isn’t straightforward. If AI server spending stalls, or major customers hold off on optical upgrades, or if there are snags ramping up indium phosphide output, the newest guidance could easily end up looking too ambitious.
Next up: a string of industry events could move the needle, especially if Coherent drops fresh customer or product news. The company has marked its calendar for SEMICON Korea, Feb. 11-13, and OFC, March 17-19.
