New York, Feb 4, 2026, 17:23 ET — After-hours
Lumentum Holdings Inc. shares climbed 7.2% to $465.54 in after-hours trading Wednesday, following a volatile day that saw prices fluctuate between $426.21 and $509.90.
The late move is significant since investors treat optical hardware stocks as a quick gauge for data-center spending linked to artificial intelligence. When guidance changes, these shares often jump first and spark debate afterward.
Lumentum is caught in that tug of war. Traders are keyed in on whether demand will translate into steady orders and stable margins, or if it will flip into another boom-and-bust quarter.
On Tuesday, the company posted fiscal second-quarter net revenue of $665.5 million and a non-GAAP diluted EPS of $1.67. It then projected fiscal third-quarter revenue between $780 million and $830 million, with non-GAAP diluted EPS ranging from $2.15 to $2.35. Operating margin on a non-GAAP basis came in at 25.2% for the quarter, with a forecast of 30% to 31% next quarter. CEO Michael Hurlston said revenue hit the top end of guidance, and profitability “expanded well beyond” earlier expectations. Lumentum’s non-GAAP numbers exclude stock-based compensation, acquisition-related expenses, and restructuring costs. (Lumentum Investor Relations)
“Lumentum posted stronger results and, crucially, much improved guidance,” Susquehanna analyst Christopher Rolland said in a note referenced by Investor’s Business Daily, highlighting the strength in transceivers and fresh growth opportunities. (Investors)
Stifel bumped its price target on Lumentum to $480 from $400, maintaining a Buy rating following the quarter. B. Riley took a bigger leap, upgrading the stock from Neutral to Buy and hiking its target all the way to $526 from $147, Investing.com reported. (Investing.com South Africa)
The print arrives as the market wrestles with which players will benefit from faster connections within and between data centers. For Lumentum, the challenge is clear: scale supply efficiently while preventing pricing and product mix from dragging down profits.
But the company also highlighted some known risks: customer demand might shift, orders could be delayed or reduced, and changes in product mix can rapidly affect margins. Cost pressures and dropping average selling prices remain a concern. In its earnings report, Lumentum flagged early-stage growth in newer products like optical circuit switches, noting that OCS shipments have surpassed a $10 million quarterly run rate.
Traders will be eyeing whether the after-hours jump holds as Thursday’s session begins, along with any fresh details in the company’s just-filed Form 10‑Q for the quarter ending Dec. 27, 2025. (SEC)
