Description

Lumentum Holdings: Why the Shift From 800G to 1.6T Could Be a Defining Growth Moment!

Lumentum Holdings reported strong growth in its second quarter of fiscal year 2026, setting new records for both revenue and operating margins. Despite some challenges and uncertainties, the company’s performance showcases significant movement in capturing market opportunities, particularly in the AI and cloud sectors. On the financial front, the company achieved a remarkable 65% year-over-year revenue growth, reaching $665.5 million, with a notable increase in non-GAAP operating margins, which improved by over 1,700 basis points. The guidance for the upcoming quarter suggests that Lumentum expects continued strong performance, projecting revenue between $780 million to $830 million, which implies further year-over-year growth exceeding 85%. Lumentum’s strategic focus on three main growth areas—cloud transceivers, optical circuit switches (OCS), and co-packaged optics (CPO)—has begun to pay dividends. The company reported better-than-anticipated performance in its OCS business, surpassing internal expectations by achieving their $10 million sales target a quarter ahead of schedule.