Coherent (NYSE:COHR) saw its shares surge 15% pre-market today after delivering standout second-quarter results and issuing an optimistic forecast, reinforcing confidence in its growth trajectory.
The company posted adjusted earnings per share of $0.95, far exceeding analyst projections of $0.69. Revenue climbed to $1.44 billion, surpassing the $1.37 billion consensus estimate and reflecting a robust 27% year-over-year increase.
Coherent’s strong quarter was fueled by surging demand for AI-driven data center applications and solid growth in its telecom segment. The company also made significant strides in profitability, with notable improvements in both gross and operating margins. GAAP gross margin expanded to 35.5%, a 452-basis-point increase from the prior year, while non-GAAP gross margin rose to 38.2%, up 363 basis points.
Looking ahead, Coherent expects third-quarter earnings per share to range between $0.75 and $0.95, with the midpoint above analysts’ $0.76 projection. Revenue is projected between $1.39 billion and $1.48 billion, aligning closely with Wall Street estimates of $1.4 billion.