Coherent shares rise 5.14% premarket after strong Q2 results, data center growth, and production expansion.

Coherent surged 5.14% in premarket trading following robust Q4 2025 results highlighting a 17.5% revenue increase to $1.69 billion, driven by 34% growth in its data center & communications segment. The company attributed the performance to rising demand for 800 Gb/s and 1.6 Tb/s optical transceivers, accelerated by AI data center expansion, and a strategic shift to 6-inch indium phosphide wafers, boosting production efficiency and margins. Additionally, a large CPO order for AI applications and a successful sale of its Rofin-Baasel unit to Bystronic signaled operational strength. Analysts at Needham reiterated a Buy rating with a $235 price target, while Zacks highlighted Coherent’s outperformance against peers and expanding operating margins. These factors collectively fueled premarket optimism despite an initial post-earnings dip.