Lumentum Shares Jump 13% After $1 Billion Q4 Beat on AI Optical Demand
Updated
Updated · The Motley Fool · Aug 17
Lumentum Shares Jump 13% After $1 Billion Q4 Beat on AI Optical Demand
3 articles · Updated · The Motley Fool · Aug 17
Summary
Lumentum stock rose more than 13% after the company reported fiscal 2026 fourth-quarter revenue of just over $1 billion, up 109% year over year and above the $988 million consensus.
Adjusted EPS climbed to $3.23 from a year earlier and beat the $2.97 estimate, while non-GAAP operating margin expanded 21.6 percentage points to 36.6%.
The company guided for the current quarter to reach $1.25 billion in revenue—up 134% year over year—and for adjusted EPS to surge to $4.20 from $1.10.
That momentum is tied to AI data-center demand for optical networking parts, where Rosenblatt sees production capacity rising 12-fold by 2030 yet supply still trailing demand by 50%.
Lumentum shares are already up 140% in 2026, and longer term the setup could remain favorable as Goldman Sachs projects the optical networking market to expand ninefold to $154 billion by 2028.