New York, January 26, 2026, 15:10 EST — Regular session
- Lumentum shares slid about 1.6% in afternoon trading after a choppy session earlier.
- The drop comes just before the company is due to report its fiscal Q2 results next week.
- Investors are zeroing in on data-center optics demand and the outlook for the March quarter.
Lumentum Holdings Inc shares slipped 1.6%, falling to $333.78 Monday afternoon after hitting an earlier peak of $350.63. The Nasdaq-listed stock lost $5.41 from its previous close, with about 2.0 million shares traded.
The pullback comes just a week before Lumentum’s fiscal second-quarter earnings, due Feb. 3, with the conference call slated for 5 p.m. ET. This report will act as a quick reality check for a stock that’s been surging in sudden, gap-like moves lately. 1
U.S. stocks crept higher, with the S&P 500, Nasdaq, and Dow all up around 0.7% by midday. Lumentum, a key player in optical and photonic components for cloud and communications networks—plus industrial lasers—drew attention. 2
In November, the company reported fiscal first-quarter revenue of $533.8 million, with non-GAAP earnings at $1.10 per share—excluding items like stock-based compensation. It projects fiscal second-quarter revenue between $630 million and $670 million, and non-GAAP EPS in the range of $1.30 to $1.50. CEO Michael Hurlston said the company is “well positioned to support the rapid expansion of AI compute.” 3
The broader AI-hardware sector painted a mixed picture Monday. Nvidia slipped about 0.8%, while optical networking firms Ciena and Coherent gained roughly 1% each.
Lumentum’s report next week will focus sharply on demand for high-speed optical links to data centers and the state of margins. Investors are eager to see if shipments are gaining momentum or tapering off, along with which products are fueling cloud growth.
The Industrial Tech segment, responsible for lasers used in manufacturing and other industries, is a crucial factor. Any deceleration in this area might weaken the broader growth story, despite robust cloud order volumes.
Lumentum’s shares have been all over the place this past year, bouncing between $45.65 and $402.79. Such a wide range tends to amplify investor reactions to earnings surprises, whether positive or negative. 4
If earnings or forecasts come in merely “fine,” investors may start to doubt the premium baked into the stock after its strong run this past year. The biggest impact would likely come from any cautious comments about customer spending, timing issues, or shipment delays.
Lumentum will report earnings on Feb. 3 after the market closes, revealing its guidance for the March quarter. The company’s results could influence other optics and networking stocks across the week.
