nLIGHT Inc

nLIGHT is scheduled to report second-quarter 2026 earnings after market close on August 6. The company expects revenues between $75 million and $81 million, while the Zacks Consensus Estimate stands at $78.5 million, a 27.2% increase from the year-ago quarter. The consensus earnings estimate is 14 cents per share, reflecting year-over-year growth of 133.3%. Results are likely to benefit from strong aerospace and defense demand, particularly in directed energy and laser sensing programs, though the exit from the cutting and welding business is expected to pressure margins, with product gross margins forecast at 37% to 41%.

nLIGHT Inc. has been selected for a Joint Laser Weapon System agreement by the US Department of War to advance next-generation cruise missile defense. The contract includes an initial $44 million award with a total potential ceiling of $627 million, covering the development, integration, and eventual production of high-energy laser platforms. The program aims to transition directed energy technology from prototypes to field-ready systems, initially targeting 150 kW and scaling to 300–500 kW for robust defense. nLIGHT will deliver modular systems suitable for both land and maritime deployment, utilizing its proprietary beam-combination and atmospheric correction technology. The agreement uses an Other Transaction Authority mechanism to facilitate rapid prototyping and accelerate the transition to large-scale production, supporting defense goals for operational deployments by 2028.

nLight, a provider of high-power lasers for defense, medical, and industrial applications, was a notable contributor to the Meridian Contrarian Fund in the first quarter of 2026. The fund, managed by ArrowMark Partners, said investors re-rated the stock higher on the conflict in Iran and across the Middle East, as the company's laser defense applications shield troops from drones and enemy missiles. nLight's shares gained 209.10% over the past 52 weeks, closing at $61.37 on June 26, 2026, with a market capitalization of $3.45 billion. The fund trimmed part of its position on strength as part of its disciplined risk management process. The Meridian Contrarian Fund returned 1.10% during the quarter, compared to the Russell 2500 Growth Index's 2.04% return.

nLIGHT shares have fallen more than 21% over the past month, even after the company reported fiscal first-quarter 2026 revenue of $80.18 million, beating the $72.14 million estimate, and earnings per share of $0.20, above the $0.08 consensus. Record aerospace and defense product revenue of $33.1 million, up 98% year-over-year, helped lift gross margins to 33.1% from 26.7% a year earlier. For the second quarter, nLIGHT projects revenue between $75 million and $81 million. Wall Street sees more than 31% upside from current levels, with 89% of nine analysts maintaining a buy rating, and William Blair analyst Louie DiPalma reiterated a Buy on May 25, citing the company's growing role in directed energy laser weapons as the Department of Defense accelerates investment in those systems.

Prosper Stars & Stripes exited its position in nLIGHT in early April after the stock hit its price target, the fund said in its first-quarter 2026 investor letter. nLIGHT was the second-largest contributor to the long book during the quarter, benefiting from a defense revenue mix that has grown from 18% of sales in fiscal 2018 to 70% today. The company's defense segment delivered 60% year-over-year growth in fiscal 2025, supported by U.S. Department of War priorities in directed energy and limited competition in coherent beam combination technology. The fund initiated the position in May 2025 and cited nLIGHT's vertical integration, more than 450 patents, and a 300-kilowatt-class high-energy laser demonstration under the HELSI program as key differentiators. The portfolio overall returned negative 5.6% net in the first quarter, underperforming the Russell 2000 Index's positive 0.9% return.