Lumentum Stock Rallies on $665.5 Million Quarter — Lite Stock
Lumentum lite stock moved higher after fiscal second-quarter revenue rose 65% year over year to $665.5 million, with non-GAAP operating margin expanding 1,730 basis points to 25.2%. That pace leaves the optical gear maker heading into fiscal third-quarter results due tomorrow after the close with demand still running ahead of supply.
Michael Hurlston’s AI push
$665.5 million in revenue came alongside fiscal second-quarter EPS of $1.67, topping the $1.41 expected, a result that extended Lumentum’s run of beats to eight straight quarters. Michael Hurlston said, “We are now recognized as a foundational engine of the AI revolution.”
65% year-over-year growth is being driven by optical circuit switches and co-packaged optics, the parts of the AI buildout that move data inside and between servers. Lumentum says those products are now central to data center connectivity and power delivery, and the numbers show the shift has moved from promise to production.
$400 million backlog and 2027 capacity
$400 million-plus in optical circuit switch backlog is already booked, and Hurlston said it “has surged well past $400 million, the majority of which is slated for shipment in the second half of this calendar year.” The company also cleared its first $10 million optical circuit switches quarter three months ahead of schedule and secured an additional multi-$100 million purchase order for ultra-high-power lasers, with those shipments slated for 2027.
Full capacity through calendar 2027 means Lumentum is still unable to meet all demand, with Wajid Ali saying, “Prices are holding or they're increasing for what customers want.” The company is undershipping demand by roughly 30%, while all EML capacity is spoken for through calendar 2027.
Tomorrow’s $780 million to $830 million guide
$780 million to $830 million is the third-quarter revenue target, paired with non-GAAP EPS guidance of $2.15 to $2.35. If Lumentum lands inside that range, the market will be measuring whether the AI buildout is still accelerating fast enough to justify a stock that is up 1,444.1% over the past year and 157.72% year to date.
$981.17 was the last stock price cited, above the $871.56 average analyst target, a gap that leaves little room for disappointment when results arrive tomorrow after the close.
