New York, February 4, 2026, 19:14 EST — After-hours trading
- Coherent shares dropped roughly 8% in after-hours trading following the release of quarterly results and an updated outlook.
- The photonics company posted $1.69 billion in revenue for the December quarter, with adjusted earnings of $1.29 per share.
- Management projects March-quarter revenue between $1.70 billion and $1.84 billion, with adjusted EPS ranging from $1.28 to $1.48.
Coherent Corp shares dropped roughly 8% to $211 in after-hours trading Wednesday following the photonics company’s quarterly earnings and updated guidance. During the regular session and extended hours, the stock fluctuated between $243 and $168.07.
This move is significant since Coherent occupies a key spot in the laser-and-optics supply chain serving data centers and telecom networks. Investors have been viewing those sectors as a gauge for wider investment in high-speed connectivity.
This comes at a time when the market’s patience is wearing thin. Hardware stocks linked to data center construction now often react sharply to guidance, where even minor shifts in volumes or margins can upend the short-term narrative.
Coherent reported fiscal Q2 revenue of $1.69 billion, ending on Dec. 31. GAAP earnings came in at $0.76 per diluted share, with non-GAAP earnings at $1.29 per share. CEO Jim Anderson highlighted “strong demand” in the datacenter and communications segment. Coherent Inc
Adjusted profit topped Wall Street forecasts, as analysts polled by Zacks had predicted $1.22 per share. Revenue also exceeded the $1.64 billion estimate, according to an earnings snapshot.
Coherent projects third-quarter revenue between $1.70 billion and $1.84 billion, with non-GAAP earnings per share ranging from $1.28 to $1.48. The company clarified that their non-GAAP figures exclude items like share-based compensation and acquisition-related expenses. They also highlighted that the forecast factors in $5 million in revenue from a Munich-based tools business sold at the end of January.
Coherent’s investor presentation revealed datacenter and communications made up 72% of fiscal second-quarter revenue, leaving industrial at 28%. Revenue from datacenter and communications hit $1.208 billion, a 34% rise year-over-year on a pro forma basis. Industrial revenue held steady at $478 million.
Coherent races against rivals like Lumentum and IPG Photonics in segments of the photonics market. Investors keep a close eye on the group for any hints of supply tightening, price shifts, or order slowdowns.
The risk lies in demand becoming uneven. Any slowdown in data center spending, delays in customer orders, or production ramp-up issues could quickly squeeze margins, particularly as the company ramps up spending to boost capacity.
U.S. trading picks up again Thursday, with investors eyeing whether the after-hours selloff sticks as liquidity returns, or if buyers jump back in, betting that guidance still leaves room for upside surprises.
Looking past the upcoming session, the next clear trigger is the company’s March-quarter earnings report. MarketScreener currently pins May 12 as the expected date for that release.
