Yahoo Finance·2026-02-12 14:51Group 1: Company Overview - Lumentum Holdings is an optical and photonic products company based in San Jose, California, providing products to the cloud, networking, and industrial sectors [3] - The company has a market capitalization of approximately $40.1 billion and an enterprise value of $42.1 billion, positioning itself as a "mission critical" supplier for artificial intelligence infrastructure [3] Group 2: Stock Performance - Lumentum's stock has experienced significant growth, trading at $556, with a 52-week range of $45.65 to $599.50, and has seen an increase of over 600% in weighted alpha, outperforming the S&P 500 Index [4] - The stock's relative strength is at 74.39, indicating strong performance [4] - Institutional ownership of the stock exceeds 94%, with a short float of 15.8% [6] Group 3: Financial Performance - In fiscal Q2 2026, Lumentum reported revenue of $665.5 million, a substantial increase from $402.2 million in the same period last year [7] - The company's GAAP diluted EPS was $0.89, while its non-GAAP diluted EPS was $1.67, compared to $0.42 in the year-ago period [7] - Lumentum's GAAP gross margin improved to 36.1%, and its non-GAAP gross margin rose to 42.5%, reflecting significant margin improvement [7] Group 4: Market Trends and Future Outlook - The pace of investment in artificial intelligence infrastructure is accelerating, with increasing interest in companies like Lumentum that enable next-generation networking [1] - Nvidia's recent launch of the Quantum-X and Spectrum-X scale-out switch is expected to drive further adoption of optical interconnection technology, benefiting optical component companies like Lumentum [2] - The anticipated arrival of the next-generation 115.2T CPO switch in 2026, along with supply chain acceleration through 2027, is expected to positively impact Lumentum [2]