New York, Feb 10, 2026, 11:02 ET — Regular session
- Lumentum shares dropped in morning trading, following a solid finish just the day before.
- That rally has turned the stock into a bellwether for AI trends and cloud data-center outlays.
- Next up, investors are watching for the upcoming slate of management appearances.
Lumentum Holdings Inc slipped 2.4% to $563.33 Tuesday, dropping from Monday’s $577.15 close. Shares traded as low as $531 and reached $579, despite both the S&P 500 and Nasdaq-tracking ETFs ticking up.
This drop is notable—Lumentum’s stock has become a high-beta bet tied closely to AI and cloud data center spend. The shares ran up fast, so when traders spot even a hint of overcrowding, they waste no time pulling back exposure.
Lumentum turned in fiscal Q2 revenue of $665.5 million last week, with adjusted earnings landing at $1.67 per share. Looking out to the third quarter, it’s projecting revenue between $780 million and $830 million, and expects adjusted operating margins to come in at 30% to 31%. CEO Michael Hurlston described the company as “only at the starting line” in optical circuit switches and co-packaged optics, noting a backlog for OCS “well beyond $400 million” and calling Lumentum “mission-critical to the world’s AI leaders.” (OCS are used to reroute light within data centers; co-packaged optics bring optical engines right up to switching chips—cutting power use and boosting speed.) 1
Lumentum shares reached $599.50 at one point Monday, with roughly 5.9 million shares changing hands, Yahoo Finance data shows. 2
Action was uneven across optics stocks. Coherent slid 4.2%. Applied Optoelectronics added 2.5%. iShares Semiconductor ETF barely budged.
Investors have zeroed in on cadence—just how rapidly backlog converts to shipments, and if rising volumes still push margins higher rather than straining supply chains or nudging costs up again. Guidance is the reference point here, though tone on calls and in meetings also carries weight.
Still, there’s an obvious catch here. If hyperscalers pull back on orders or delay deliveries—and with expectations already high—any hint of pricing pressure in optical components could send shares tumbling faster than the broader market.
Next on the docket, Lumentum’s management plans to appear at the Susquehanna 15th Annual Technology Conference on Feb. 26, then at the Morgan Stanley Technology, Media & Telecom Conference on March 2. The company will also webcast one of the presentations. 3
