Coherent Corporation (COHR) saw its stock price soar 17.57% in the pre-market trading session on Thursday, February 6th, 2025, following the company's impressive fiscal second-quarter results and an optimistic outlook for the future.

The laser and optical technologies provider reported adjusted earnings per share of $0.95 for the quarter ended December 31, 2024, significantly outperforming the consensus estimate of $0.69. Revenue came in at $1.43 billion, up 26.8% year-over-year, driven by strong demand for its products, particularly in the AI-related data center and telecom businesses.

Coherent's robust performance was fueled by the growing adoption of artificial intelligence (AI) technologies, which has led to increased demand for the company's high-performance lasers and optical components. The company's networking segment, which includes products for AI data centers, saw revenue surge 55.7% year-over-year to $815.9 million, reflecting the insatiable appetite for AI-related infrastructure.

Looking ahead, Coherent provided an upbeat outlook for the fiscal third quarter, expecting revenue between $1.39 billion and $1.48 billion and non-GAAP earnings per share in the range of $0.75 to $0.95, surpassing analyst estimates. The company's confidence stems from the robust demand for its AI-related products and the ongoing expansion of its production capacity to meet the growing market needs.