AI Data Center Optical Communication Beneficiaries, Quarterly Revenue Surges 65%

Lumentum Holdings Inc. (NASDAQ: LITE) today reported financial results for its second quarter of fiscal 2026, which ended December 27, 2025. Revenues rose 65.5% year-over-year to $665.5 million (approximately KRW 960 billion). The company returned to profitability and delivered a significant improvement in its non-GAAP operating margin.

Demand for its optical circuit switches and co-packaged optics surged, pushing its backlog above $400 million (roughly KRW 580 billion). Lumentum also secured new orders worth several hundred million dollars, with deliveries scheduled for the first half of 2027.

For the third quarter of fiscal 2026, Lumentum projects revenues of $780 million to $830 million (about KRW 1.1–1.2 trillion) and a non-GAAP operating margin of 30% to 31%. This guidance incorporates escrow settlement and warranty reserve provisions related to the Cloud Light acquisition, as well as the continued use of non-GAAP measures.

Chairman of the Board Penny Hersher disclosed that she sold common stock worth several million dollars (around KRW 70 billion) in open-market transactions on February 6 and 12, reducing her direct holdings. She noted, however, that her indirect stake held through a family trust remains unchanged.

Since the early-February earnings release, LITE shares have climbed by double digits amid growing expectations for optical communications in AI data centers. Brokerages including Rosenblatt have raised price targets, identifying Lumentum as a core beneficiary of AI infrastructure demand.

Nonetheless, following Hersher’s consecutive insider sales, the stock has seen increased short-term volatility and a modest pullback, drawing investor attention.

Headquartered in Silicon Valley, Lumentum is a specialist in optical and photonics technologies. Its product portfolio—lasers, optical modules, and optical circuit switches—serves ultra-high-speed data centers, telecom networks, and industrial sensing applications.

With generative AI driving a need for greater power efficiency and bandwidth in data centers, the market for high-performance optical communications equipment—including co-packaged optics and optical switching—is poised for structural growth over the coming years.