nLIGHT's stock plummeted 12.47% during intraday trading on Friday, extending a significant pre-market decline.
The sharp drop follows the company's release of its first-quarter guidance for fiscal year 2026, which projects revenue in the range of $70 million to $76 million. While this guidance exceeds some analyst forecasts, it represents a notable sequential decline from the company's record fourth-quarter revenue of $81.2 million, signaling a potential slowdown in business momentum.
Investors reacted negatively to the projected sequential decline despite nLIGHT reporting strong fourth-quarter results that beat analyst estimates, with adjusted earnings of $0.14 per share versus expectations of $0.11 and revenue surging 71.3% year-over-year. The contrast between the robust Q4 performance and the weaker Q1 outlook prompted the selloff.