New York, February 2, 2026, 11:58 (EST) — Regular session
- Lumentum shares surged about 13% by midday, hitting a high just over $448 before retreating
- Focus shifts to fiscal Q2 earnings, due out after Tuesday’s close, with a webcast scheduled for 5 p.m. ET
- An increased price target refocused attention on margins and supply chain bottlenecks
Lumentum shares jumped 13.1% to $443.13 by midday Monday, hitting a session high of $448.24 earlier. Roughly 2.7 million shares traded hands, about half the stock’s average volume over the past three months.
Attention shifts to Tuesday, when the optical and photonics firm will unveil its fiscal second-quarter results after markets close on February 3. An audio webcast will follow at 5 p.m. Eastern. The company is headquartered in San Jose, California. (Lumentum Investor Relations)
Optics suppliers have become the default proxy for tracking data-center spending, especially on equipment that speeds up connections inside and between cloud hubs. Traders are racing to determine if demand continues to outpace supply, and if that surge in volume is really driving higher margins.
In its latest SEC filing, the company set its second-quarter revenue forecast at $630 million to $670 million, with a non-GAAP operating margin of 20% to 22%. Non-GAAP EPS is expected to land between $1.30 and $1.50. These figures exclude some expenses typically stripped out to focus on core business results, though the exact adjustments vary. Michael Hurlston said, “Our guidance indicates we expect more than 20 percent sequential revenue growth.”
The stock is climbing, yet challenges persist. Morgan Stanley raised its price target to $350 from $304, keeping an equal-weight rating intact. Margins continue to be uncertain as capacity constraints linger. (TipRanks)
Shares in other optics-related companies also gained ground. Coherent Corp rose about 6.3%, and Applied Optoelectronics Inc soared close to 10.2%.
The broader market edged up too, with the Nasdaq Composite climbing about 0.5% by late morning. (Investing)
For Lumentum, Tuesday isn’t just about beating or missing this quarter’s numbers. Investors are tuned into what management reveals about supply, lead times, and gross margin. Those details are what’s really moving the stock.
Strong demand alone won’t guarantee a rise if a weaker outlook hints at shipment limits or persistent cost problems. Shares might also fall if customer orders appear to be normalizing after a recent spike.
Mark your calendars for February 3, when the earnings report drops after the market closes, with a conference call set for 5:00 p.m. ET. Investors are eager to catch any updates on guidance or plans for capacity growth. (Lumentum Investor Relations)
