Shares of Coherent Corp (COHR) surged 11.79% in after-hours trading on Wednesday, following the company's release of exceptional first-quarter financial results that significantly outperformed analyst expectations.

The photonics and laser technology company reported a strong 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. Coherent's impressive performance extended across multiple financial metrics, with adjusted net income reaching $221 million, well above the estimated $166.8 million.

Investors were particularly encouraged by Coherent's operational efficiency, as evidenced by its adjusted operating income of $309 million, which exceeded the IBES estimate of $285.8 million. The company's adjusted operating margin of 19.5% further underscored its strong execution in a challenging market environment.

Adding to the positive sentiment, Coherent provided an optimistic outlook for the second quarter. The company expects Q2 revenue to be between $1.56 billion and $1.70 billion, with non-GAAP earnings per share projected in the range of $1.10 to $1.30. This guidance suggests continued momentum and confidence in Coherent's business strategy and market position.

The substantial after-hours stock price increase reflects growing investor confidence in Coherent's ability to capitalize on emerging technology trends and maintain its growth trajectory. As the market digests these results, analysts will likely be closely monitoring the company's performance in key segments such as AI-related datacenters and communications, which were cited as significant drivers of the quarter's success.