nLIGHT's stock experienced a significant pre-market plunge of 7.18% on Friday, extending losses from the previous session.
The decline follows the company's latest earnings release, which showed strong fourth-quarter performance with adjusted earnings of $0.14 per share beating analyst estimates of $0.11, and revenue surging 71.3% year-over-year to $81.2 million, exceeding expectations.
However, investors reacted negatively to the company's first-quarter guidance for fiscal year 2026, which projects revenue in the range of $70 million to $76 million. This guidance, while above some analyst forecasts, represents a significant sequential decline from the record Q4 results, signaling a potential slowdown and prompting the selloff.