Lumentum (LITE) Climbs 41%, Hits All-Time High on Swing to Profits

Core Insights - Lumentum Holdings Inc. experienced a significant stock increase of 40.87% week-on-week, reaching an all-time high due to its profitability in Q2 FY2026 [1][3] - The company reported a net profit of $78.2 million in Q2, a turnaround from a loss of $60.9 million in the same quarter last year, with net revenues rising by 65% to $665.5 million [3][5] - Lumentum's forward guidance indicates over 85% year-over-year revenue growth, driven by strong demand in optical circuit switches and co-packaged optics [4] Financial Performance - The net profit for Q2 FY2026 was $78.2 million, compared to a loss of $60.9 million in the same period last year [3] - Net revenues surged to $665.5 million, up from $402.2 million year-on-year, hitting the high end of previous guidance [3] - The revenue growth outlook for Q3 is projected between $780 million to $830 million, implying a growth of 83% to 95% from $425.2 million reported in the same quarter last year [5] Strategic Opportunities - Lumentum is focusing on two key areas: optical circuit switches (OCS) and co-packaged optics (CPO), with a backlog exceeding $400 million in OCS [4] - The company has received a multi-hundred-million-dollar order in CPO, expected to be delivered in the first half of 2027 [4] - The results underscore the strength of Lumentum's roadmaps for optical components and systems, positioning the company as critical to AI leaders [4]