New York, February 5, 2026, 10:42 EST — Regular session
- Coherent shares slipped in early New York trading following the company’s quarterly update late Wednesday.
- The photonics company posted $1.69 billion in revenue for fiscal Q2 and expects fiscal Q3 sales to range between $1.70 billion and $1.84 billion.
- Analysts and traders are focusing on margin execution, capacity investments, and how tariffs and export controls will play out.
Coherent Corp shares dropped 3.9% to $202.69 in late morning trading Thursday, following a turbulent start that saw the stock dip to $178.06. So far, the price has bounced between $178.06 and $209.15, with trading volume topping 5.8 million shares.
Coherent manufactures photonics products across the board, from engineered materials to lasers and optoelectronic components, serving industrial and communications sectors. Its business spans networking, materials, and lasers, meaning its stock often reacts sharply to changes in capital expenditure and demand for high-speed connectivity. (Reuters)
The timing is critical. Investors are debating if demand is spreading beyond Coherent’s top-performing sectors amid a shaky tech landscape, and if the company can continue boosting margins as it scales up production.
Late Wednesday, the company posted fiscal second-quarter revenue of $1.69 billion, marking a 17% rise from the previous year. GAAP earnings per share came in at $0.76, while non-GAAP EPS reached $1.29. The non-GAAP figures exclude items like share-based compensation and restructuring charges. For fiscal third quarter, Coherent expects revenue between $1.70 billion and $1.84 billion, with non-GAAP EPS ranging from $1.28 to $1.48 and a non-GAAP gross margin forecast of 38.5% to 40.5%. The guidance factors in $5 million of revenue from a Munich-based tools unit sold in late January. CEO Jim Anderson pointed to “strong demand” in the datacenter and communications segment, and CFO Sherri Luther said the company is “ramp[ing] our capital investment” to boost capacity. (Coherent Inc)
Stifel lifted its price target on Coherent to $235 from $220, maintaining a Buy rating. The firm highlighted the company’s “strong” fiscal Q2 results and noted that Q3 revenue and EPS guidance exceeded consensus. (TipRanks)
Coherent’s shares took a hit amid a broader tech selloff, with the Nasdaq-100 tracking ETF falling around 1.5% and a semiconductor ETF losing close to 1%. Among peers, Lumentum gained roughly 3%, whereas Applied Optoelectronics dropped about 4%, and IPG Photonics slipped near 1%.
Coherent’s shares were halted at 09:38 a.m. ET due to a limit-up/limit-down (LULD) pause, an automatic mechanism kicking in when price swings get too sharp. (MarketBeat)
One major uncertainty looms beyond the income statement. In its quarterly filing, Coherent noted that new U.S. tariffs and export restrictions set to kick in early 2025—as well as China’s limits on rare earth mineral exports—didn’t have a material impact on fiscal Q2 results. Still, the company warned ongoing disruptions could push up costs, delay production, and squeeze revenue. It also revealed $15 million in restructuring charges for the three months ended Dec. 31, 2025, and $28 million for the first half of the fiscal year. Restructuring efforts are expected to be mostly wrapped up by the close of fiscal 2026. (Stock Titan)
Traders are now focused on whether Coherent can turn robust datacenter and communications demand into consistent shipments without sacrificing margin. The company is set to present at the OFC 2026 fiber-optics conference in Los Angeles from March 17-19. Investors will be keenly eyeing any product announcements or demand insights. (Coherent Inc)
