Key Highlights

  • nLIGHT shares are down 12.51% in pre-market trading, near $66.00, after closing Wednesday at $75.44
  • Q2 2026 revenue reached a record $82.6 million, up 34% year over year, beating the $78.6 million estimate
  • Non-GAAP EPS of $0.15 beat the $0.14 estimate
  • The company disclosed a supply chain disruption tied to Chinese optics suppliers
  • Q3 2026 guidance came in below the midpoint investors had expected

What Happened

nLIGHT (NASDAQ:LASR) shares are down 12.51% in pre-market trading, near $66.00, after closing Wednesday at $75.44. nLIGHT is a Camas, Washington based designer, developer, and manufacturer of high-power semiconductor and fiber lasers, serving industrial, microfabrication, and aerospace and defense markets.

Q2 2026 revenue reached a record $82.6 million, up 34% year over year, beating the $78.6 million estimate, driven by record product revenue of $59 million, up 45% year over year. Non-GAAP EPS of $0.15 beat the $0.14 estimate, and operating cash flow reached a record $20.7 million.

Supply Chain Disruption Weighs on Guidance

Despite the record quarter, nLIGHT disclosed supply chain challenges involving certain Chinese suppliers of optics components, expected to reduce third-quarter product revenue by approximately $17 million, with resolution timing uncertain. Q3 2026 guidance calls for revenue between $63 million and $73 million, below the level investors had expected.

The company was also awarded the Joint Laser Weapon System contract for the Marine Corps, a multi-year agreement with a ceiling of $600 million, expected to more than offset an anticipated decline in a separate legacy program, with initial contribution expected in the third and fourth quarters and a significant ramp in 2027.

Conclusion

nLIGHT's 12.51% pre-market decline reflects investor concern over the disclosed supply chain disruption and softer near-term guidance, even as the company posted a record quarter and secured a major new defense contract.

This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research or consult a financial professional before making investment decisions.