Coherent shares rallied 5% over the past 24 hours, staging a sharp recovery after the company released its fiscal fourth-quarter earnings report that exceeded market expectations.

The stock had plunged more than 9% in the two trading days leading up to the release, as investors locked in profits amid concerns over 1.6T optical module orders and margin targets. However, the earnings report after Tuesday’s close revealed robust performance in the data center and communications segment, which saw 41% year-over-year revenue growth and 49% profit growth in the prior quarter, fueled by sustained AI computing demand. Market consensus had projected quarterly revenue of approximately $1.986 billion, up 31.65% year-over-year, and adjusted EPS of $1.62, up 76.71%.

The positive reaction in after-hours and overnight trading propelled the stock higher, reversing the pre-earnings sell-off as investors welcomed the strong operational results and AI-driven momentum.