Coherent reported better-than-expected earnings Wednesday as the optical-networking company's technology plays a growing role in connecting artificial-intelligence infrastructure.

Shares fell 5% to $338.62 in late trading. They had surged 8.2% on Wednesday and have gained more than 200% over the last 12 months.

The reaction likely reflected investors' ever-increasing expectations for optics suppliers, particularly after excellent earnings from rival Lumentum Holdings on Tuesday.

Coherent reported adjusted earnings of $1.74 a share for its fiscal fourth quarter, up from $1 a year ago and above analysts' consensus estimate of $1.62. Revenue surged 34% to $2.05 billion, surpassing Wall Street's call for $1.99 billion.

Guidance was also strong. The company expects adjusted earnings per share of $1.85 to $2.05 in the first quarter of fiscal 2027 on revenue of $2.3 billion at the midpoint. Analysts had forecast adjusted earnings of $1.77 a share and revenue of $2.13 billion.