Shares of Coherent Corp (COHR) are soaring 14.34% in pre-market trading on Thursday, following the company's release of exceptional first-quarter financial results for fiscal year 2026 that significantly outperformed analyst expectations.

The photonics and laser technology company reported a stellar start to its fiscal year, 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. The company's operational efficiency was highlighted by its adjusted operating income of $309 million, which exceeded the IBES estimate of $285.8 million, resulting in a robust 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. This guidance suggests continued momentum and confidence in Coherent's business strategy and market position. CEO Jim Anderson attributed the strong results to robust demand from AI-related datacenters and communications sectors, indicating that the company is successfully capitalizing on emerging technology trends. As investors react to these impressive results and positive outlook, Coherent Corp's stock is experiencing significant pre-market gains, reflecting growing confidence in the company's growth trajectory and its ability to navigate current market conditions.