Shares of Coherent Corp (COHR) surged 14.34% in pre-market trading 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%.

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. CEO Jim Anderson attributed the strong results to robust demand from AI-related datacenters and communications sectors. 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.