Coherent Hits Record on Q1 Beat and Guidance Tied to AI Demand

Overview

• The optical networking supplier posted fiscal Q1 revenue of $1.581 billion, up 17% year over year, with GAAP net income of $226 million and adjusted earnings of $1.16 per share.
• Shares jumped to an intraday high of $162.50 before closing up 18.32% at $159.30 on Thursday, outpacing declines in the S&P 500 and Nasdaq.
• By Thursday night, the stock was up nearly 21% for the week, according to S&P Global Market Intelligence.
• For fiscal Q2, Coherent guided revenue to $1.56 billion–$1.70 billion with gross margin of 38%–40% and EPS of $1.10–$1.30.
• Management and coverage pointed to AI data-center and communications demand as key drivers, and the results drew multiple analyst price-target increases.