Lumentum Surges 15% After Q4 Revenue Doubles and Q1 Guidance Blows Past Estimates

Lumentum Holdings shares climbed roughly 15% to $942 in midday trading on Wednesday after the optical components maker posted fiscal Q4 2026 revenue of $1.01 billion, a 109% year-over-year increase and ahead of the analyst consensus of $987.9 million. It marked the eighth consecutive quarter of top-line growth. Non-GAAP gross margin reached 50.4%, a level the company had previously associated with roughly $2 billion in quarterly revenue, signaling faster-than-expected operating leverage.

The upside extended to guidance: Lumentum projected fiscal Q1 revenue of $1.23 billion to $1.27 billion, implying more than 130% year-over-year growth, with adjusted EPS of $4.05 to $4.35, well above prior consensus. The results reflect surging demand from hyperscalers building out AI infrastructure, with growth broadening beyond co-packaged optics to 1.6T transceivers, optical circuit switches, continuous-wave lasers, and pump lasers. The print lifted the broader optical-networking trade, with Coherent gaining roughly 9% and Corning adding about 5% in sympathy.

Fabrinet also rose approximately 10.8%. Lumentum's results drew attention as a read-through for Coherent's upcoming earnings report.