Coherent delivered a stronger-than-expected fiscal fourth quarter and issued guidance that topped Wall Street forecasts, but the stock still fell 5% after initially rising on the results. Revenue climbed 34% year over year to $2.05 billion, beating the $1.98 billion consensus, while adjusted earnings per share of $1.74 exceeded the $1.62 estimate. GAAP EPS improved to a profit of $1.19 from a loss of $0.83 a year earlier. Adjusted gross margin rose to 40.2% and GAAP gross margin reached 38.5%, reflecting broader profitability gains. For the current quarter, Coherent projected revenue of $2.2 billion to $2.4 billion and adjusted EPS of $1.85 to $2.05, both above analyst expectations. Management pointed to strong demand, expanding production capacity and new growth platforms. The negative share reaction highlighted how demanding investor expectations have become for companies linked to the artificial intelligence infrastructure buildout, with the market appearing to question how much future growth was already reflected in the stock after a strong run-up.