nLIGHT Soars as Defense Contracts Fuel Better-Than-Expected Revenue

CAMAS, Wash. – January 13, 2026 – Shares of nLIGHT, Inc. (Nasdaq: LASR) surged on Tuesday after the high-power laser manufacturer announced preliminary fourth-quarter 2025 revenue that is expected to surpass the high end of its previous guidance. The company attributed the strong performance primarily to continued robust demand from the lucrative Aerospace & Defense (A&D) market, signaling a powerful growth trajectory heading into 2026.

nLIGHT now expects to report total revenue for the fourth quarter, which ended December 31, 2025, in the range of $78 million to $80 million. This figure comfortably exceeds the company’s prior guidance of $72 million to $78 million. The better-than-expected results prompted an immediate and positive reaction from investors, with the stock climbing over 5% in mid-day trading.

“We ended 2025 on a strong note, particularly with respect to the performance of our Aerospace & Defense market,” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer, in the company's press release. “We enter 2026 with good visibility across multiple programs in both directed energy and laser sensing, and we remain well-positioned for near- and long-term growth in Aerospace & Defense.”

The Defense Dividend

The driving force behind nLIGHT's impressive quarter is the rapidly expanding market for its core technology in military applications. The company is a crucial supplier of high-power lasers, a foundational component for next-generation Directed Energy Weapons (DEW). This market is projected to grow substantially, with some estimates suggesting a compound annual growth rate exceeding 20% over the next several years as global defense spending on advanced technology accelerates.

Directed energy systems, which use focused energy like lasers to counter threats, are becoming increasingly vital for modern warfare. They offer significant advantages over traditional munitions, including speed-of-light engagement, precision targeting, and a lower cost-per-shot, making them ideal for defending against drones, rockets, and mortars. The Pentagon is reportedly spending around $1 billion annually to develop these capabilities, creating a significant and sustained opportunity for specialized component manufacturers like nLIGHT.

The company is deeply embedded in key U.S. Department of Defense (DoD) initiatives. It is a prime contractor for the High Energy Laser Scaling Initiative (HELSI), a program aimed at developing a powerful megawatt-class laser. nLIGHT has confirmed it is on track to meet its HELSI-2 program requirements, with completion expected in 2026. Furthermore, the company is involved in the Army's Directed Energy Maneuver-Short Range Air Defense (DE M-SHORAD) program, which aims to equip Stryker combat vehicles with 50-kilowatt laser weapons to counter unmanned aerial systems.

Beyond directed energy, nLIGHT’s laser sensing products are also seeing increased demand for applications such as missile guidance, reconnaissance, and threat detection, further solidifying its critical role within the defense industrial base.

A Pattern of Performance

Tuesday's announcement continues a trend of strong execution for the Camas-based company. The preliminary Q4 figures follow a record-breaking third quarter in 2025, where revenue hit $66.7 million, and A&D revenue alone surged 50% year-over-year. The company has consistently beaten analyst expectations in recent quarters, building investor confidence in its growth strategy.

The preliminary Q4 revenue is broken down into an expected $54 million to $55 million from Laser Products and $24 million to $25 million from Advanced Development, highlighting strength across its business segments. The positive news spurred Wall Street analysts to react favorably. Raymond James reiterated its "Strong Buy" rating with a $50 price target, while Needham raised its price target on the stock to $48 from a previous $39, maintaining a "Buy" rating.

As noted in the company's release, the announced financial results are preliminary and remain subject to the completion of financial closing procedures and a final audit. This is standard practice for early announcements, and while material changes are infrequent, the final figures will be confirmed in the company's official audited report. However, the consistent outperformance in recent periods suggests a strong underlying momentum.

The Laser's Edge in a Competitive Field

nLIGHT operates in a highly competitive but innovative landscape. While it competes with other specialized laser manufacturers like IPG Photonics and Coherent Corp., its primary growth market in defense involves a complex ecosystem of major contractors. Large defense primes such as Lockheed Martin and Raytheon are heavily invested in developing and integrating complete directed energy weapon systems. These firms often act as both partners and potential competitors, integrating components from specialists like nLIGHT while also developing their own in-house capabilities.

For example, Raytheon has successfully demonstrated its own high-energy laser and microwave systems, while Lockheed Martin holds a major contract to develop a laser weapon prototype for the U.S. Army. The market is also attracting new entrants, with industrial giants like Germany's TRUMPF now venturing into laser systems for drone defense. nLIGHT's strategic position is built on its deep technological expertise and its vertically integrated model, which gives it control over the entire production process from the semiconductor chip to the final high-power laser system. This specialization makes it an indispensable partner for many of the larger programs that require cutting-edge laser sources.

CEO Scott Keeney and CFO Joe Corso are scheduled to meet with investors at the 28th Annual Needham Growth Conference this week, where they will likely provide further color on the company's strategic positioning and outlook. The strong preliminary results provide a powerful backdrop for those discussions, underscoring the company’s successful pivot toward the high-growth A&D sector. With good visibility into major programs for 2026 and a central role in the modernization of U.S. defense capabilities, nLIGHT appears poised to continue its upward trajectory.