AI Data Center Surge: Optical Equipment Company Sees 65% Quarterly Revenue Increase

Lumentum Holdings Inc. (LITE) reported revenue of approximately $665.5 million for the second quarter of fiscal 2026, a 65% year-over-year increase, and swung to net income, marking a significant turnaround. The company said surging demand for optical circuit switches and co-packaged optics has pushed its order backlog past $400 million and secured a major order scheduled for delivery in the first half of 2027. It projected next quarter’s revenue could reach up to $830 million. Separately, director Penny Herscher sold several thousand shares from her personal holdings on February 6 and 12, realizing roughly $5 million (about KRW 7 billion), though she still retains a substantial stake through a family trust.

After its February 3 earnings release, Lumentum reiterated strong demand in the AI and cloud data center markets and expects further growth this year driven by optical circuit switches and high-speed optical transceivers. On February 10, the company announced plans to attend key investor events—including the Susquehanna Technology Conference and the Morgan Stanley TMT Conference—expanding its engagement with institutional investors.

Headquartered in San Jose, California, Lumentum is an optics and photonics company that supplies lasers, modules and optical circuit switches for data centers and telecommunications networks. With continued investments in AI computing data centers and ongoing high-speed network expansions, growth prospects across the optical communications and photonics components industry are rising.