New York, Feb 5, 2026, 17:41 EST — After-hours
Lumentum Holdings Inc shares climbed roughly 8.4% to $504.42 in after-hours trading Thursday, continuing a wild ride driven by investor focus on the optics maker’s AI data-center prospects. The stock swung between $426.84 and $511.00 during the session on around 8.5 million shares changing hands.
Why it matters now: Investors see Lumentum as a direct bet on faster connections within AI-centric data centers, but the company’s latest forecast pushed that payoff further down the road. Its optical circuit switch backlog topped “well beyond $400 million,” and it flagged an additional “multi-hundred-million-dollar” co-packaged optics order set for delivery in the first half of calendar 2027. (Lumentum Investor Relations)
Optical circuit switches (OCS) steer light signals across data-center networks, routing traffic between server racks. Co-packaged optics (CPO) takes this further by placing optics nearer to compute chips, reducing power consumption and boosting speed—crucial as AI clusters grow larger.
Lumentum posted fiscal Q2 revenue of $665.5 million with GAAP earnings at $0.89 per share. Adjusted (non-GAAP) earnings, which exclude stock-based compensation and select one-time expenses, reached $1.67 per share, according to the company’s earnings release. (Yahoo Finance)
During its earnings call, management highlighted anticipated growth in cloud transceivers along with OCS and CPO, adding plans to break into the optical scale-up market by late 2027. (Investing)
Christopher Rolland, an analyst at Susquehanna, described the company’s guidance as “dramatically better,” noting that the acceleration in growth has shifted margin expectations upward. (Investors)
U.S. stocks broadly sold off Thursday, rattled by tech giants’ huge AI infrastructure spending plans and uncertainty over when profits might follow. Alphabet’s projection of a steep rise in 2026 capital expenditures only fueled that unease. (Reuters)
Shares of Coherent dived 12.4% despite beating quarterly estimates and delivering a strong outlook, showing how market positioning can overpower positive earnings surprises. (Investing)
Networking equipment firm Ciena — often linked by investors to AI-driven traffic surges — officially joined the S&P 500 on Friday. This change is likely to push passive funds into buying its stock. Shares fluctuated amid earnings reports and the index update. (MarketWatch)
The downside is clear: the bar keeps rising by the hour. Should major cloud clients pull back on deployments, or if new offerings like co-packaged optics stall between orders and shipments, the recent jump in the stock could reverse quickly.
Investors are now zeroing in on timing. Lumentum is set to hold an investor briefing on March 17 at the OFC 2026 conference in Los Angeles. Traders will be seeking clearer insights into backlog conversion, customer demand, and how quickly the CPO ramp is progressing. (Lumentum Investor Relations)
