nLIGHT Projects 37% Revenue Rise in Q1 2026 Amid Cutting‑Weld Exit

TL;DR: nLIGHT expects Q1 2026 revenue of $71.2 million, a 37.8% year‑over‑year jump, with earnings of 8 cents per share, while exiting the cutting‑weld segment will cut full‑year sales by $25‑30 million.

Context

The laser‑technology firm will report its first‑quarter results after market close on May 7. Analysts have set a consensus revenue range of $70‑$76 million for the quarter, with the midpoint at $71.2 million. That figure represents a 37.8% increase from the $51.7 million recorded a year earlier.

Key Facts

- Consensus earnings per share (EPS) for Q1 2026 stand at 8 cents, up 2 cents from the prior estimate and a reversal from a 4‑cent loss per share in the same quarter last year. - The company’s decision to exit the cutting and welding business will reduce full‑year revenue by $25‑$30 million, according to management. - Product gross margin is projected at 36.5% for the quarter, down from 41.0% a quarter earlier, reflecting lower factory utilization and a less favorable product mix. - nLIGHT’s aerospace and defense (A&D) segment continues to benefit from strong demand for directed‑energy systems, missile‑defense lasers, and laser sensing, areas funded by the U.S. Department of Defense and allied nations. - Recent contracts include a $50 million award for a long‑running missile program and the start of low‑rate production on a classified sensing project.

What It Means

The revenue outlook signals robust growth in the A&D market, where nLIGHT’s full‑stack laser offerings are gaining traction. The 8‑cent EPS forecast suggests the company has moved from loss to profitability on a per‑share basis, a shift that could attract value‑focused investors.

However, the cutting‑weld exit introduces a near‑term headwind. Removing a segment that contributed incremental profit will depress top‑line figures and pressure margins, as reflected in the projected 36.5% product gross margin. The margin decline also hints at higher inventory charges and under‑utilized capacity.

Investors should weigh the upside from expanding defense contracts against the downside of a shrinking product portfolio. The upcoming earnings release will reveal whether the A&D surge can offset the revenue gap created by the exit.

What to watch next: Look for the Q1 earnings release on May 7 and any guidance on how the company plans to reallocate resources lost from the cutting‑weld business.