New York, February 5, 2026, 18:22 ET — After-hours
- Coherent shares dipped roughly 0.8% in after-hours trading, having swung over 15% during the session
- The photonics supplier projected March-quarter revenue between $1.70 billion and $1.84 billion
- Analysts raised price targets, yet investors remain cautious about margins and demand for high-speed optics
Coherent Corp shares slipped 0.8% to $209.24 in after-hours trading on Thursday, following a volatile day that saw the stock swing between $178.06 and $210.87. More than 12 million shares changed hands.
The whipsaw is significant because Coherent ranks among the larger public suppliers of optical components used in data centers and telecom networks—sectors where spending signals the speed of AI infrastructure expansion. When expectations are so tightly set, even a slight change in guidance can send the stock moving sharply.
The sector has been volatile throughout the week. Lumentum, a key player, projected March-quarter revenue around $805 million after reporting a 65% surge in December-quarter sales. This highlights how swiftly the data-center optics cycle shifts when hyperscalers ramp up spending. 1
Coherent reported fiscal second-quarter revenue of $1.69 billion, up 17.5% year over year. GAAP earnings hit $0.76 per share, with adjusted earnings at $1.29. Datacenter and communications revenue reached $1.21 billion, while industrial revenue fell to $477.6 million. Looking ahead to the March quarter, the company expects revenue between $1.70 billion and $1.84 billion, and adjusted earnings ranging from $1.28 to $1.48 per share. The forecast factors in roughly $5 million in revenue from the Munich tools unit, which was sold at the end of January. 2
Analysts expected $1.21 per share on $1.64 billion in revenue, according to Investing.com. CEO Jim Anderson pointed to “strong demand” in the datacenter and communications segment as the main driver for the quarter. CFO Sherri Luther added that Coherent is increasing capital spending to boost capacity. 3
Stifel analyst Ruben Roy highlighted an impending “step-function increase in networking intensity” as AI systems ramp up workloads, driving greater data flow within and between data centers. Simply put, this translates into more optical equipment per dollar of compute power—potentially a boon for suppliers, provided orders materialize. 4
Following the report, Stifel bumped up its price target on Coherent to $235 from $220, maintaining a Buy rating. The firm highlighted the company’s strong results and guidance that came in above expectations. 5
BofA raised its price target to $230 from $210 but maintained a Neutral rating. The firm noted that Coherent’s near-term gains appear “more restrained” compared to peer Lumentum, despite improvements in longer-term forecasts. 6
But the stock’s volatile swings reveal the flip side of this trade. Several analysts noted the quarter allowed little margin for error and pointed out a major AI datacenter co-packaged optics order set to ramp up later this year, with a more significant impact expected in 2027. 7
During the earnings call, Anderson pointed to the increase in six-inch indium phosphide capacity—a crucial component in high-speed optics—as a key factor boosting Coherent’s transceiver gross margins. He also cited strong demand for 800-gigabit and 1.6-terabit optical modules. Traders will be watching closely to see if this capacity boost translates into margin gains as shipments grow. 8
March’s OFC 2026 conference in Los Angeles, set for March 17–19, is the next key event. Coherent plans to unveil new optical networking products there. Investors will watch closely for any hints about high-speed deployment plans. 9
