Shares of Coherent Corp (COHR) surged 11.87% in the night session on Thursday, following the company's release of exceptional first-quarter financial results that significantly outperformed analyst expectations. The photonics and laser technology company demonstrated robust growth, driven by strong demand in AI-related sectors.

Coherent reported a stellar start to its fiscal year 2026, with Q1 adjusted earnings per share of $1.16, handily beating the IBES estimate of $1.04. Revenue for the quarter came in at $1.581 billion, surpassing analyst projections of $1.534 billion. The company's impressive performance extended across multiple financial metrics, with adjusted operating income reaching $309 million, well above the estimated $285.8 million, resulting in a solid adjusted operating margin of 19.5%.

CEO Jim Anderson attributed the strong results to robust demand from AI-related datacenters and communications sectors. The company's positive momentum is expected to continue, with Q2 revenue guidance set between $1.56 billion and $1.70 billion. In response to the stellar performance, Jefferies raised its target price for Coherent Corp to $160 from $110, reflecting growing confidence in the company's market position and growth prospects. As Coherent continues to capitalize on emerging technology trends, particularly in AI and advanced communications, investors appear optimistic about its future trajectory in the rapidly evolving tech landscape.