Nov. 28, 2025 at 5:14 PM ET5 min read

Coherent Reports Earnings Beat, Inspires Price Target Upgrades

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Stocks have been trading up by 7.46 percent as Coherent Corp. benefits from positive investor sentiment.

Key Takeaways

  • Adjusted EPS hit $1.16, outpacing the anticipated $1.04, and revenue of $1.58 billion, also surpassed the $1.54 billion consensus, driven by high AI-related demand.

  • Analysts from Needham, Barclays, and Stifel boosted their price targets due to Coherent’s robust performance and positive outlook, signaling market confidence.

  • The new Axon FP laser, a significant tech leap for the life sciences, promises better flexibility and potential market edge in instrumentation and metrology.

  • CFRA highlights sustained AI demand and profitability, raising the price target to $180 given record bookings and expected gross margin growth.

  • Coherent’s divestiture of the materials processing tools division plans to reduce debt, prompting positive market reactions with potential EPS boost.

Candlestick Chart

Live Update At 12:13:32 EST: On Friday, November 28, 2025 Coherent Corp. stock [NYSE: COHR] is trending up by 7.46%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Coherent’s latest earnings stunned the market with an adjusted EPS of $1.16, striking well above the anticipated $1.04. This impressive performance is backed by a revenue surge to $1.58 billion, fueled primarily by a 19% increase attributed to AI-driven datacenters. The firm’s financial strength is underscored by a gross margin of 35.8%, with profitability metrics like EBIT margin standing at 5.7%. Overall, Coherent is riding high on a wave of optimism and confidence.

Considering the earnings surprise, analysts have shown their enthusiasm for Coherent’s potential. Needham, Barclays, and Stifel analysts all raised their price targets, reflecting firm belief in the company’s strategic directions and reinforcing the notion that Coherent’s stock is a promising bet. Whether it’s the steady AI/cloud capex hypergrowth or the capacity expansions, Coherent indeed seems unstoppable in its current trajectory.

Market Reactions

Post-earnings, reaction in the market was swift and largely positive. Analysts swiftly commended the earnings report’s beat, not only raising price targets but reshuffling positions positively towards Coherent. Needham increased its target to $190, Barclays to $170, and Stifel reaffirmed a Buy rating, reflecting a standard upward mobility of investor sentiment.

Moreover, with a future vision intertwined with AI tech growth and predictions of rising capex, Coherent finds itself in the sweet spot of emerging tech demand. The launch of its Axon FP laser as well solidifies its tech leadership. Innovations like these aren’t just incremental; they’re transformative and could very well ensure Coherent’s narrative continues to captivate markets in the foreseeable future.

Conclusion

In conclusion, Coherent’s latest earnings set the stage for a promising narrative. The company’s strategic focus on AI-driven growth, combined with a solid track record of beating expectations, bodes well for any future endeavors. The price target hikes from respected analysts signal a continuous belief in Coherent to chart its path forward successfully. Indubitably, keeping an eye on Coherent’s evolution seems wise, especially for those looking for sustainable long-term growth backed by strong foundations. As Tim Bohen, lead trainer with StocksToTrade says, “A consistent trading routine beats sporadic action every time. Show up daily, and you’ll start to see the patterns others miss.” This perspective underscores the importance of regularly monitoring Coherent’s journey, which seems poised to be exciting, with Coherent writing new chapters in the tech and innovation space.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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