Coherent Stock Plummets 20% Despite Earnings Beat as Growth Concerns Emerge

Photonics specialist Coherent (COHR) plunged nearly 20% Thursday despite reporting record fiscal Q4 revenue of $1.53 billion, a 16% YoY increase. The sell-off occurred even as adjusted EPS of $1.00 surpassed estimates by $0.08, highlighting market sensitivity to growth trajectories in key segments.

Analysts zeroed in on decelerating data center revenue growth - sliding from 58% to 24% over four quarters - as the primary catalyst for the downturn. Bank of America's Vivek Arya downgraded the stock following the report, triggering aggressive profit-taking among institutional holders.

The decline starkly contrasted with flat index performance, underscoring sector-specific risk assessment. While AI data center demand remains a revenue driver, the shrinking growth premium proved insufficient to sustain valuation multiples in the current risk-off environment.