Coherent shares jump 13% after earnings beat and $20 billion AI optics deal

Coherent reported Q1 FY2027 revenue of $2.37 billion and adjusted EPS of $2.09, beating consensus estimates. The results were accompanied by the announcement of a five‑year PhotonLink agreement worth about $20 billion with an AI company. Citi raised its price target to $440, prompting the stock to surge 13%.

Citi’s target lift signals analyst confidence and may attract buying, while the large PhotonLink contract could drive future revenue growth. However, the company’s operating cash flow remained negative, highlighting cash‑flow risk for investors.

  • 1Revenue for Q1 FY2027 was $2.37 billion, topping consensus.
  • 2Adjusted EPS for the quarter was $2.09, beating the $1.97 consensus estimate.
  • 3Citi raised Coherent’s price target to $440 from $420.
  • 4Coherent announced a PhotonLink long‑term agreement valued at about $20 billion over five years.
  • 5Operating cash flow for the quarter was negative $93 million.
  • 6Coherent’s stock rose 13% on the day of the announcement.

Sources