New York, January 26, 2026, 15:10 EST — Regular session
- Lumentum shares dropped roughly 1.6% in afternoon trading, following a volatile session earlier in the day.
- The decline arrives ahead of the company’s fiscal Q2 results set for release next week.
- Investors are focused on data-center optics demand and the guidance tone for the March quarter.
Lumentum Holdings Inc shares dropped 1.6% to $333.78 in Monday afternoon trading, pulling back from an earlier high of $350.63. The Nasdaq-listed stock slid $5.41 from its last close, with roughly 2.0 million shares changing hands.
The pullback arrives just a week ahead of Lumentum’s fiscal second-quarter earnings, set for Feb. 3, with its conference call scheduled for 5 p.m. ET. This upcoming report serves as an immediate reality check for a stock that’s been making rapid, gap-like jumps recently. (Lumentum Investor Relations)
U.S. stocks edged up, the S&P 500, Nasdaq, and Dow each gaining roughly 0.7% by midday. Lumentum, known for its optical and photonic components in cloud and communications networks as well as industrial lasers, was also in focus. (Reuters)
In November, the company posted fiscal first-quarter revenue of $533.8 million, with non-GAAP earnings coming in at $1.10 per share—this figure excludes certain items like stock-based compensation. It expects fiscal second-quarter revenue between $630 million and $670 million, and non-GAAP EPS ranging from $1.30 to $1.50. CEO Michael Hurlston said the firm is “well positioned to support the rapid expansion of AI compute.” (Business Wire)
The broader AI-hardware sector showed a mixed picture on Monday. Nvidia dipped roughly 0.8%, whereas optical networking players Ciena and Coherent each climbed around 1%.
Next week’s print from Lumentum will zero in on demand for high-speed optical links to data centers, and how margins are shaping up. Investors want to know if shipments are picking up or slowing down, and what product mix is driving cloud expansion.
The company’s Industrial Tech segment, which supplies lasers for manufacturing and other sectors, is another key variable. A slowdown here could undermine the overall growth narrative, even if cloud orders remain strong.
Lumentum’s stock has swung widely over the past year, trading between $45.65 and $402.79. That kind of range often magnifies how investors respond to earnings beats or misses. (MarketWatch)
If earnings or forecasts land just “fine,” investors might question the premium built into the stock after its run this past year. Any cautious remarks on customer spending, timing, or shipment delays could hit hardest.
Lumentum is set to report on Feb. 3 after the market closes, unveiling its outlook for the March quarter. What happens with Lumentum could ripple through other optics and networking stocks throughout the week.
