New York, Feb 6, 2026, 12:30 EST — Regular session
- Coherent shares popped about 7% after the company issued a stronger outlook and analysts moved to raise their target prices.
- The company is looking at Q3 revenue somewhere between $1.70 billion and $1.84 billion, and it’s putting adjusted EPS in the $1.28 to $1.48 range.
- Analysts see more clarity around demand for datacenter optics, but they’re not letting go of their cautious outlook just yet
Coherent Corp popped about 7.3% to $224.59 midday Friday, rebounding as analysts bumped up price targets in response to the photonics company’s latest earnings and guidance.
It’s a crucial story for investors: Coherent sits right in the middle of the supply chain, and its numbers tend to signal what’s happening with high-speed optical link spending in the datacenter world. Traders scanning for real evidence of order flow—not just expansion talk—regularly zero in on this stock.
So, that’s the whipsaw: Coherent beat the Street in fiscal Q2, but the stock tanked anyway as the outlook didn’t quite satisfy hopes set sky-high.
Coherent turned in fiscal Q2 revenue of $1.69 billion, with adjusted (non-GAAP) EPS landing at $1.29—those figures strip out certain costs tied to acquisitions and restructuring. Datacenter & Communications brought in $1.21 billion. Industrial? $477.6 million. For fiscal Q3, Coherent is targeting revenue in the $1.70 billion to $1.84 billion range, and expects adjusted EPS between $1.28 and $1.48. That forecast includes a minor revenue slice from its Munich-based tools business, which was sold off at January’s close. CEO Jim Anderson pointed to “strong demand in our datacenter and communications segment.” GlobeNewswire
Analysts moved quickly after the earnings drop. Rosenblatt’s Mike Genovese raised his target to $300. Over at Needham, Ryan Koontz stuck with a Buy and a $235 price target, according to Benzinga. Koontz said Coherent’s execution is “steadily improving,” but he also flagged growth that “lags super-cycle expectations,” with much of the optimism already built in. Benzinga
Stifel bumped up its price target to $235 from $220 and kept its Buy call. Analysts pointed to robust demand for 800G and 1.6T optical transceivers—the modules behind speedy fiber data—and called out the company’s push to expand manufacturing with 6-inch indium phosphide (InP) wafers, which are crucial for optical chips.
JPMorgan analyst Samik Chatterjee lifted his price target to $245 from $215, sticking with an Overweight call. In a note cited by TheFly, Chatterjee cited new deal wins and a more defined demand picture.
Coherent filed its latest earnings results and an investor presentation in an 8-K, a new SEC filing showed. The documents went in right after the company reported for the quarter.
The rally faces hurdles. Industrial demand still trails the datacenter side, while the company is pouring more into capacity expansion. If orders slow or customers push back shipments, cash flow could get squeezed. With guidance set in a broad range, questions aren’t likely to fade soon.
March quarter numbers are up next. Investors are watching for any uptick in demand for top-speed optical equipment, and whether management is holding to those capacity targets. The earnings drop lands on May 13.
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