New York, February 2, 2026, 11:58 (EST) — Regular session
- Lumentum shares jumped roughly 13% by midday, peaking just above $448 before pulling back
- Attention now turns to fiscal Q2 earnings, set to drop after Tuesday’s close, followed by a 5 p.m. ET webcast
- A raised price target shifted focus back to margins and supply bottlenecks
Lumentum shares surged 13.1% to $443.13 by midday Monday, having peaked at $448.24 earlier in the session. About 2.7 million shares changed hands, around half the stock’s three-month average volume.
The focus now turns to Tuesday’s earnings from the optical and photonics company, which plans to report its fiscal second-quarter results after the market closes on February 3. An audio webcast is scheduled for 5 p.m. Eastern. The firm is based in San Jose, California. (Lumentum Investor Relations)
Optics suppliers have turned into a go-to proxy for gauging data-center spending, particularly the gear powering faster connections within and between cloud hubs. Traders are scrambling to figure out if demand still outstrips supply, and whether that volume boost is actually boosting margins.
In its most recent quarterly filing with the U.S. Securities and Exchange Commission, the company projected second-quarter revenue between $630 million and $670 million, alongside a non-GAAP operating margin ranging from 20% to 22%. It also forecast non-GAAP earnings per share of $1.30 to $1.50. These non-GAAP numbers exclude certain costs that companies often remove to highlight core operations, though the specifics can differ. Michael Hurlston noted, “Our guidance indicates we expect more than 20 percent sequential revenue growth.”
The stock is pushing higher, but the hurdle grows too. Morgan Stanley bumped its price target to $350 from $304, maintaining an equal-weight rating. Margins remain a big question mark as the company still faces tight capacity. (TipRanks)
Shares in other optics-related firms also climbed. Coherent Corp jumped roughly 6.3%, while Applied Optoelectronics Inc surged nearly 10.2%.
The broader market also tilted higher, with the Nasdaq Composite gaining roughly 0.5% by late morning. (Investing)
For Lumentum, Tuesday’s focus isn’t just on whether they beat or miss this quarter. Investors are zeroed in on what management says about supply, lead times, and gross margin. That’s the real driver behind the stock’s moves.
Even with strong demand, a weaker outlook could push shares down if it suggests shipments are limited or costs remain an issue. The stock could also slip if there’s any sign that customer orders are returning to typical levels after a surge.
Next on the calendar: the February 3 earnings report after market close, followed by a 5:00 p.m. ET conference call. Investors will be watching closely for any shifts in guidance or news on capacity expansions. (Lumentum Investor Relations)
