- nLIGHT to Participate in William Blair 46th Conference & Baird 2026
May 12, 2026
By Karen Roman
nLIGHT, Inc. (Nasdaq: LASR) said it will participate in the William Blair 46th Annual Growth Stock Conference, considered a high-profile venue where companies update investors on their growth strategy, capital allocation, and market outlook. The event will be held on June 2, 2026, in Chicago, Illinois.
The company will also participate at the Baird 2026 Global Consumer, Technology & Services Conference taking place on June 4, 2026, in New York.
About nLIGHT
nLIGHT, Inc. is a leading provider of high-power lasers for mission critical directed energy, optical sensing, and advanced manufacturing applications. Headquartered in Camas, Washington, nLIGHT employs more than 800 people with operations in the United States, Europe and Asia. The company’s vertically integrated approach enables performance leadership from laser chip through system-level solutions. For more information, please visit www.nlight.net.
READ MORE
Final Agenda and Registration – 2nd Princeton CorpGov Forum: Endowments, Activism and Entertainment
Never Miss our Weekly Highlights HERE
Contact:
IPO Edge
www.IPO-Edge.com
Editor@IPO-Edge.com
Click HERE to follow us on LinkedIn
View Comments
- A Look at Lumentum Holdings Inc (LITE) After 9.8% Gain -- GF Value $91.00 vs Price $992.37
May 12, 2026 · gurufocus.com
On May 12, 2026, Lumentum Holdings Inc (LITE) shares rose 9.8% today, currently trading at $992.37. The stock has experienced significant volatility over the pa
- Which Optics Stock Has Dominated in 2026: Applied Optoelectronics, Lumentum, or Coherent?
May 12, 2026 · 247wallst.com
The optics complex has been one of 2026's most rewarding corners of the AI infrastructure trade, and the spread among the three leaders is surprisingly wide.
- Lumentum Stock Rises 6% After Q3 Earnings: Should You Hold or Fold?
May 12, 2026
Lumentum Holdings’ LITE shares have gained 6.1% since the company reported third-quarter fiscal 2026 results on May 5, driven by robust AI- and cloud-related demand. Revenues surged 90.1% year over year to $808 million, while non-GAAP earnings jumped to $2.37 per share from 57 cents in the year-ago quarter.
Both top and bottom lines exceeded analysts’ expectations. Revenues beat the Zacks Consensus Estimate by 0.37%, while earnings surpassed the consensus mark by 5.8%.
Lumentum’s strong quarterly performance was primarily driven by accelerating demand for AI infrastructure and cloud networking products. Growth was particularly strong in EML laser chips, cloud transceivers and scale-across networking components.
The company also benefited from improving product mix, pricing discipline and stronger operating leverage, which significantly boosted margins during the quarter.
LITE’s Strong Q4 Guidance Supports Bullish Momentum
For the fourth quarter of fiscal 2026, Lumentum expects revenues between $960 million and $1.01 billion. The company guided non-GAAP operating margin to 35-36% and non-GAAP earnings to $2.85-$3.05 per share, based on an effective tax rate assumption of 16.5% and approximately 102 million diluted shares.
Management indicated that transceivers are expected to be a major driver of sequential growth, supported by the ramp of 1.6T shipments in the fiscal fourth quarter. The company also expects continued progress in integrating internal CW lasers into its module portfolio. Management noted that nearly 20% of modules in the near-term mix could incorporate Lumentum’s own CW lasers, alongside ongoing yield improvements and lower scrap rates, which are expected to support profitability.
The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is currently pegged at $986.69 million, indicating more than 100% year-over-year growth. The consensus estimate for earnings is pegged at $2.69 per share, up 3.5% over the past 30 days.
Analyst sentiment also remains favorable for the longer term. Earnings estimates for fiscal 2026 and fiscal 2027 have increased 2.1% and 11.4%, respectively, over the past 30 days, reflecting optimism surrounding Lumentum’s expanding AI- and cloud-driven growth opportunities.Zacks Investment Research
Image Source: Zacks Investment Research
LITE Gains From Strong AI and Cloud Infrastructure Demand
Lumentum is benefiting significantly from robust AI and cloud infrastructure demand, which is driving strong adoption of its optical and photonic technologies across hyperscale data centers and next-generation networking deployments. The company noted that hyperscalers are increasingly shifting toward distributed “scale-across” data-center architectures to overcome power and space limitations, creating substantial demand for high-bandwidth optical interconnect technologies. Lumentum’s pump lasers, narrow linewidth laser assemblies and wavelength-selective switches are playing a critical role in enabling high-speed synchronization and optical routing across multiple data centers.
The company is also witnessing exceptional momentum across its key AI networking component portfolio. Shipments of narrow linewidth laser assemblies increased more than 120% year over year for the ninth consecutive quarter, while pump laser shipments rose 80% year over year. In laser chips, Lumentum achieved another quarterly shipment record, driven by accelerating adoption of 100-gig and 200-gig lane technologies. Revenues from 200-gig EML products more than doubled sequentially, while wafer fabrication capacity in Japan remains fully allocated to meet surging demand. The company expects more than 50% growth in EML units by the December quarter of 2026 compared with the prior-year period, reflecting sustained AI-driven infrastructure expansion.
Lumentum is also positioning itself to capitalize on future AI networking opportunities through co-packaged optics (CPO), optical circuit switching and next-generation transceiver technologies. Management highlighted its ultra-high-power laser chip manufacturing ramp for CPO applications remains on track, with meaningful revenue expected beginning in the December quarter and a multihundred-million-dollar purchase order scheduled for the first half of calendar 2027. The company also continues collaborating with multiple CPO customers to integrate its laser chip technologies into turnkey module solutions.
The technical setup for Lumentum remains bullish, with the stock trading above its 50-day and 200-day moving averages, suggesting sustained upside momentum in the near term.
Story Continues
LITE Trades Above the 50-Day and 200-Day SMAsZacks Investment Research
Image Source: Zacks Investment Research
Despite these strong AI-driven growth trends, several operational and financial challenges could temper investor enthusiasm going forward. Let’s analyze.
Challenges That May Limit Further Upside of Lumentum
Demand in some legacy businesses remained weak during the quarter. Management noted that industrial lasers stayed roughly flat sequentially, while cable access revenues declined due to customer timing factors.
Supply constraints also remain a major challenge. The company stated that shipments across several high-growth product areas continue to trail customer demand because of component shortages and supply-chain bottlenecks. Management further indicated that the supply-demand imbalance has widened to more than 30%, highlighting ongoing execution pressure despite aggressive capacity expansion initiatives.
Investors should also monitor balance-sheet risks. Current liabilities increased sharply, mainly due to the current portion of long-term debt rising to $3.24 billion from $10.6 million at fiscal 2025-end. The company also cited risks tied to debt servicing and compliance with revolving credit facility covenants.
LITE’s High Valuation Limits Upside Potential
Lumentum stock appears to be overvalued at the moment, limiting its near-term upside and increasing downside risk. The company currently carries a Zacks Value Score of F. In terms of forward price/sales (P/S), LITE trades at 15.78X, more than double the industry average of 6X.
Lumentum also trades at substantially higher valuation multiples compared with several industry peers, including Corning GLW, Belden BDC and Ciena CIEN. In 2026, Corning is benefiting from strong fiber-optic and connectivity demand tied to AI data center expansion, while Belden continues to gain from rising demand for high-speed networking and automation infrastructure. At the same time, Ciena is benefiting from accelerating investments in AI-driven optical networking capacity. Currently, Corning, Belden and Ciena trade at P/S multiples of 9.09X, 1.51X and 12.12X, respectively.
Lumentum’s premium valuation suggests investors are already pricing in sustained AI-driven growth and successful execution across next-generation optical networking opportunities. However, elevated multiples also increase the stock’s sensitivity to execution risks, supply constraints and any slowdown in hyperscale AI spending trends.
Price/Sales Ratio (F12M)Zacks Investment Research
Image Source: Zacks Investment Research
Stay Invested in LITE for the Long Run
Lumentum remains well-positioned to benefit from expanding AI and cloud infrastructure investments, supported by strong demand for optical networking technologies. However, supply constraints, elevated debt levels and premium valuation may limit near-term upside. Given the balanced risk-reward profile, existing investors may find holding LITE shares appropriate for long-term exposure to AI-driven networking growth.
Lumentum carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ciena Corporation (CIEN) : Free Stock Analysis Report
Corning Incorporated (GLW) : Free Stock Analysis Report
Belden Inc (BDC) : Free Stock Analysis Report
Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- 3 Optical Component Giants in Focus on Massive AI Data Center Growth
May 12, 2026
The artificial intelligence (AI) frenzy remains intact as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Research firm McKinsey & Co. has estimated that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030.
Optical and photonics products are in tremendous demand for serving global cloud and AI/ML infrastructure. Here, we recommend investors keep a close watch on three optical component behemoths that have skyrocketed year to date. Industry-leading products of these companies and the unstoppable growth of AI-powered data centers make these stocks attractive investment opportunities for the long term.
These are: Corning Inc. GLW, Lumentum Holdings Inc. LITE and Coherent Corp. COHR. Each of our picks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our three picks year to date.Zacks Investment Research
Image Source: Zacks Investment Research
Corning Inc.
Corning continues to focus on developing state-of-the-art cover materials, which have been deployed on more than 8 billion devices. GLW offers several products focused on the data center, with a portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. This augurs well for its long-term growth.
The growing adoption of innovative optical connectivity products for generative AI applications is expected to be a key growth driver for GLW in the upcoming quarters. Since both consumers and enterprises are using networks more extensively and the data thus generated is increasingly being used to train AI models, there is tremendous demand for quality networking.
Additionally, data consumption patterns are changing, with a growing propensity to consume video content, creating the need for faster data transfer. Since optical networks are more efficient and most existing networks are copper-based, the demand for GLW’s optical solutions is particularly strong.
On May 6, Corning and NVIDIA Corp. NVDA entered a multiyear commercial and technology partnership to expand U.S.-based manufacturing of the advanced optical connectivity solutions needed to power next-generation AI infrastructure.
Corning has an expected revenue and earnings growth rate of 13.3% and 26.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% in the last seven days.Zacks Investment Research
Image Source: Zacks Investment Research
Story Continues
Lumentum Holdings Inc.
Lumentum Holdings designs and manufactures optical and photonic technologies for high-speed telecommunications, data centers, and advanced manufacturing. LITE provides components, such as transceivers and lasers for fiber-optic networks, supporting the rapid growth of AI, cloud computing, 5G connectivity, and beyond.
LITE’s technology leadership in high-speed optical components has positioned it as an essential supplier to hyperscale customers deploying next-generation network architectures. Moreover, LITE has a strong collaboration with NVIDIA for developing NVDA’s silicon photonics ecosystem, especially for deploying the latter’s Spectrum-X Photonics networking switches.
Lumentum Holdings has an expected revenue and earnings growth rate of 84.8% and more than 100%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 7.5% in the last seven days.Zacks Investment Research
Image Source: Zacks Investment Research
Coherent Corp.
Coherent is positioned at the center of the AI datacenter build-out, which has driven sustained strength in Datacenter and Communications from fiscal 2025 through the second quarter of fiscal 2026 and is expected to continue with double-digit sequential growth in the third and fourth quarters of fiscal 2026.
COHR reports record booking visibility, with most of calendar 2026 already booked, orders extending into calendar 2027, and customer forecasts reaching into calendar 2028 alongside multiple long-term agreements. This depth of demand materially reduces near-term revenue uncertainty and supports durable top-line momentum.
COHR’s mix should improve as higher-value pluggables ramp up and as the shift to larger indium phosphide wafers lowers unit costs, positioning margins to expand. COHR’s portfolio is widening with growing systems and co-packaged optics, adding optionality. Capacity is scaling, and the balance sheet is improving.
Coherent has an expected revenue and earnings growth rate of 30.9% and 38.4%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.6% in the last seven days.Zacks Investment Research
Image Source: Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Corning Incorporated (GLW) : Free Stock Analysis Report
Coherent Corp. (COHR) : Free Stock Analysis Report
Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- Cloud AI Today - CloudBolt Advances AI-Ready Cloud Management Platform
May 12, 2026
CloudBolt Software has unveiled the latest version of its cloud management platform, emphasizing AI-ready operations, enhanced governance, and broader support for alternatives to VMware. This release highlights innovations that facilitate AI integration into cloud operations, allowing AI-assisted workflows to interact with cloud management functions through a governed framework. It also introduces more precise role-based access control and extends customization capabilities to cover operational tasks beyond initial provisioning. Additionally, the platform now supports a wider range of virtualization and cloud infrastructure options, reflecting enterprises' growing need for flexible and diverse hybrid cloud strategies.
In other trading, Lumentum Holdings was a notable mover up 16.5% and ending the day at $1,053.09, near its 52-week high. Meanwhile, Ubiquiti trailed, down 12.3% to close at $738.61. This month, the company affirmed a quarterly dividend of $0.8000 per share, payable on May 26, 2026.
Lumentum Holdings is poised for significant profitability due to high demand in cloud computing and AI. Discover how this growth opportunity aligns with your investment strategy.
Explore our Market Insights article 'China's Next Winners Have Been Chosen', highlighting AI's prioritized role in China's transformative five-year plan—get in fast to understand its investment implications!
Best Cloud AI Stocks
Apple closed at $292.68 down 0.2%, not far from its 52-week high. Microsoft closed at $412.66 down 0.6%. Alphabet ended the day at $388.64 down 3%, not far from its 52-week high. On Monday, the company announced a fixed-income offering featuring callable, senior, unsecured, and unsubordinated notes.
Make It Happen
Reveal the 145 hidden gems, such as D-Wave Quantum, CoreWeave and Capgemini, among our Cloud AI Stocks screener with a single click here. Contemplating Other Strategies? Trump's oil boom is here — pipelines are primed to profit. Discover the 22 US stocks riding the wave.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Story Continues
Sources:
Simply Wall St "CloudBolt Advances Its Cloud Management Platform With AI-Ready Control, Finer-Grained Governance, and Expanded Support for VMware Alternatives" from CloudBolt on GlobeNewswire (published 08 May 2026)
Companies discussed in this article include NasdaqGS:LITENasdaqGS:AAPLNasdaqGS:MSFTNasdaqGS:GOOGL and NYSE:UI.
This article was originally published by Simply Wall St.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View Comments
- The AI Data Center Backlash Is Growing. Kevin O’Leary’s $1 Billion Stratos Project Reveals Why
May 12, 2026
Quick Read
The Big Four hyperscalers (Microsoft, Amazon, Alphabet, and Meta Platforms) are spending over $725 billion combined this year on AI infrastructure, creating massive demand for chips, power generation, cooling systems, and materials like copper, benefiting companies including Nvidia, Constellation Energy, and Freeport-McMoRan. Community opposition to massive AI data center projects is emerging as a critical bottleneck to the infrastructure buildout, with residents in Utah, Virginia, Arizona, Georgia, and Texas raising concerns about water consumption, power demands, and environmental impact that could delay multibillion-dollar projects and reshape where AI facilities get built. The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.
Artificial intelligence is setting off the biggest infrastructure buildout since the early internet boom. Only this time, the stakes are larger, the power demands are higher, and the local pushback is louder.
The world's biggest tech companies are racing to build AI capacity because whoever controls the computing power may control the next decade of software, advertising, cloud services, and automation. But as investors chase chip stocks and AI winners, a new problem is emerging: communities increasingly do not want these giant facilities in their backyards.
Kevin O'Leary's proposed Stratos Project in Utah shows exactly why that resistance is becoming the industry's newest bottleneck.
The analyst who called NVIDIA in 2010 just named his top 10 stocks. Get them here FREE.
AI's Infrastructure Arms Race Is Reshaping Entire Industries
The numbers attached to the AI boom are staggering. According to company guidance and analyst estimates from Goldman Sachs and Morgan Stanley, the Big Four hyperscalers -- Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), and Meta Platforms (NASDAQ:META) -- are expected to spend upwards of $725 billion combined this year on AI infrastructure, data centers, chips, networking equipment, and energy systems.
That spending spree has created ripple effects throughout the economy.
Here's what the numbers tell us:
Industry Why It Benefits Key Companies AI chips GPUs power AI training and inference Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) Optical networking AI data transfer requires faster photonics Coherent (NASDAQ:COHR), Lumentum Holdings (NASDAQ:LITE) Utilities Data centers consume enormous electricity Constellation Energy (NYSE:CEG), Vistra (NYSE:VST) Copper mining Miles of cables are needed for power and networking Freeport-McMoRan (NYSE:FCX) Water infrastructure Cooling systems require huge water supplies American Water Works (NYSE:AWK)
Surprisingly, some Wall Street analysts now describe data centers as the new railroads -- foundational infrastructure supporting entire economic ecosystems. Simply put, AI cannot exist without massive physical construction projects.
Story Continues
And these are not small server rooms anymore. Modern AI campuses can span thousands of acres, require dedicated substations, and consume as much electricity as mid-sized cities.
Beyond the code lies a massive physical footprint consuming city-sized power and triggering a new era of local resistance.
Kevin O'Leary's Stratos Project Shows Why Opposition Is Growing
That brings us to the proposed Stratos Project in Box Elder County, Utah. Backed by Shark Tank investor Kevin O'Leary, the AI data center campus would cover roughly 40,000 acres. The development could eventually include dozens of data centers alongside power infrastructure, water systems, and industrial facilities.
Supporters say the project would create construction jobs, long-term technology employment, and tax revenue. Utah Gov. Spencer Cox has supported expanding the state's technology footprint.
But critics see something else entirely. Utah State University physics professor Robert Davies warns the facility could generate the equivalent thermal output of 23 atomic bombs per day. That comparison refers to waste heat released into the surrounding environment from the immense energy consumption required to operate AI systems.
Granted, the comparison is designed to provoke attention, but it underscores how massive these facilities have become.
Residents and environmental groups are raising concerns about:
Water consumption in an already drought-prone region Strain on electric grids Rising utility costs for residents Noise pollution from cooling systems Land use disruption across tens of thousands of acres Environmental degradation tied to power generation
A single hyperscale AI data center can require more than 1 gigawatt of electricity -- roughly equivalent to the power needs of hundreds of thousands of homes. Regardless of how you look at it, communities notice when utility infrastructure starts prioritizing server farms over households.
The Real AI Bottleneck May Not Be Technology
Investors have spent the past two years worrying about AI compute shortages, chip supply constraints, memory bottlenecks, and power availability.
Those are real concerns. High-bandwidth memory, or HBM, remains supply constrained. Utilities are warning about surging electricity demand. Grid operators from Texas to Virginia are scrambling to add capacity.
But local resistance may become the industry's biggest obstacle because delays cost money. A one-year delay on a multibillion-dollar AI campus can ripple through semiconductor orders, utility investments, and cloud deployment timelines.
Organized opposition groups are emerging across multiple states. In Virginia -- the world's largest data center market -- residents have protested new construction projects over power use and land consumption. Similar fights are unfolding in Arizona, Georgia, and Texas.
In short, the AI boom is colliding with physical reality.
The technology sector spent years operating in the digital world where growth felt limitless. Data centers remind everyone that AI still depends on land, water, electricity, mining, and industrial construction.
Key Takeaway
The AI infrastructure boom still looks like a long-term investment opportunity. The hyperscalers are unlikely to slow spending while the race for AI dominance remains this intense. That continues benefiting chipmakers, utilities, networking companies, and industrial suppliers.
But sharp investors should recognize that a new risk has emerged. The real bottleneck may not be chips or electricity. It may be public tolerance. Kevin O'Leary's Stratos Project shows how quickly enthusiasm for AI jobs can turn into opposition once communities confront the scale of these developments. That tension could slow projects, raise costs, and reshape where AI infrastructure gets built over the next decade.
Investors who ignore that political and environmental reality may be missing one of the most important parts of the AI story.
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
This analyst's 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE.
View Comments
- Lumentum: AI Photonics And Optics Are The Next Bottleneck
May 12, 2026 · seekingalpha.com
Lumentum (LITE) is facing a sudden, severe photonics shortage driven by surging AI data center demand, with supply-demand imbalances exceeding 30%. Q3 FY26 results showed 90% YoY revenue growth, with both components and systems segments accelerating, signaling broadening AI optical demand. I see the photonics shortage compounding, with capacity constrained for multiple quarters and demand expanding across new, higher-margin product lines.
- Lumentum Stock Rises 6% After Q3 Earnings: Should You Hold or Fold?
May 12, 2026 · zacks.com
Shares of LITE gain after Q3 results beat estimates, fueled by AI and cloud demand, but supply constraints and high valuation may cap near-term gains.
- Lumentum AI pivot triggers massive Nasdaq 100 shakeup
May 12, 2026
Some companies spend decades on the Nasdaq without ever cracking the inner circle. Then one Friday afternoon, an announcement changes everything.
That very scenario just happened to Lumentum Holdings (LITE).
Nasdaq announced it would replace CoStar Group (CSGP) with Lumentum in the Nasdaq-100 Index before the opening bell on May 18, 2026. By Monday's close, LITE shares were up 16% to $1,053.09, according to Yahoo Finance.
CEO Michael Hurlston had already set the tone days earlier, after the company reported record quarterly revenue. "While our top line growth continues to garner headlines," he said in a company statement, "the more impressive part of our recent performance has been our margin expansion."
Wall Street apparently agreed, and the index committee was paying attention too.
Why landing in the Nasdaq-100 sent Lumentum stock flying
The Nasdaq-100 tracks the 100 largest non-financial companies listed on Nasdaq. Getting in isn't just a badge of honor; it triggers real, mechanical buying.
Index-tracking and passive investment funds are required to mirror the composition of the index. That means every fund benchmarked to the Nasdaq-100 must now purchase LITE shares to stay in line. It's a forced demand, and the market prices fast.
The numbers behind LITE's run put the index inclusion in context:
Year-to-date return: up 185.71% vs. the S&P 500's 8.29% 1-year return: up 1,523.39% vs. the S&P 500's 30.97% 3-year return: up 2,332.08% vs. the S&P 500's 79.46% 5-Year Return: up 1182.07% vs. the S&P 500's 78.53%
Source: Lumentum Stock Performance, Yahoo Finance
This is not a stock that quietly crept into the index. It earned its way in.Lumentum CEO Hurlston specifically called out "co-packaged optics" and "optical circuit switches" as growth drivers still in early innings.LightRocket / Getty Images
Lumentum's record quarter showed a company hitting its stride
The index news landed just days after Lumentum reported fiscal third-quarter results on May 5, 2026, that were hard to ignore.
Revenue came in at $808.4 million, up 90% year-over-year (YoY) and a new company record, according to a company statement. But Hurlston's point about margins is worth sitting with.
Gross margin improved 540 basis points quarter-over-quarter (QoQ). Operating margin expanded 700 basis points QoQ. For a company growing revenue at 90%, that kind of margin expansion doesn't happen by accident.
I crunched the numbers on the earnings trajectory, too:
Q3 FY2026 non-GAAP EPS: $2.37 vs. $0.57 in Q3 FY2025 Q3 FY2026 GAAP net income: $144.2 million vs. a $44.1 million loss in Q3 FY2025 Q2 to Q3 revenue jump: from $665.5 million to $808.4 million
Source: Lumentum Third Quarter of Fiscal Year 2026 Financial Results
Story Continues
The company also ended the quarter with $3.17 billion in cash, cash equivalents, and short-term investments, up $2.02 billion from the prior quarter, largely due to a Series A Convertible Preferred Stock issuance in March 2026.
What Lumentum actually makes, and why AI infrastructure needs it
Lumentum isn't a household name, but it sits inside some of the most critical infrastructure being built right now. The company manufactures optical and photonic products - components that move data through fiber networks at the speed of light.
Its two core business segments are Cloud & Networking and Industrial Tech. The first is where AI growth is showing up most directly. Lumentum makes optical circuit switches — a component embedded in the AI hardware stack — along with chips, modules, and subsystems used in telecommunications and data center networking.
Related: Lumentum stock price target surges 55% on Nvidia ties
The second segment covers commercial lasers for industrial, scientific, and oversight applications.
Hurlston specifically called out "co-packaged optics" and "optical circuit switches" as growth drivers still in early innings. "As our key growth drivers of co-packaged optics and optical circuit switches begin to kick in," he said in the company statement, "we would expect further increases in earnings power."
That's a management team signaling the story isn't over.
Lumentum's Q4 outlook points to another record quarter
Lumentum guided Q4 fiscal 2026 revenue between $960 million and $1.01 billion, according to the company’s statement. At the midpoint, that's roughly 18% sequential growth from Q3's already-record $808 million.
The company also guided non-GAAP operating margin of 35% to 36% and non-GAAP diluted EPS of $2.85 to $3.05 for the quarter, a meaningful step up from Q3's $2.37.
More Tech Stocks:
Morgan Stanley sets jaw-dropping Micron price target after event Nvidia’s China chip problem isn’t what most investors think Quantum Computing makes $110 million move nobody saw coming
My review of the trajectory suggests Lumentum is not just growing. It's accelerating. Revenue, margins, and earnings are all moving in the same direction at the same time. That combination, paired with forced buying from index funds ahead of the May 18 inclusion date, gave Monday's, May 12, move a fundamental backbone that pure momentum rallies rarely have.
The Nasdaq-100 doesn't hand out invitations lightly. Lumentum, it seems, had already done the work to deserve one.
Related: Morgan Stanley has a blunt message on S&P 500
This story was originally published by TheStreet on May 12, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
View Comments
