Lumentum CEO: sold out through end of 2027, no end in sight

Core Insights - Lumentum CEO Michael Hurlston announced that the company is sold out through the end of 2027, indicating strong demand for its optical and photonic components used in AI data centers [1] - The company reported Q2 revenue of $665.5 million, a 65.5% increase year-over-year, with guidance for Q3 revenue projected between $780 million and $830 million [1] - Nvidia has made a $2 billion investment in Lumentum, along with a multibillion-dollar purchase commitment for optical components [1] Company Performance - Lumentum's Q2 FY2026 revenue reached $665.5 million, reflecting a 65.5% year-over-year growth, with non-GAAP operating margins expanding to 25.2% [1] - Q3 guidance suggests revenue will be between $780 million and $830 million, indicating over 85% year-over-year growth, with operating margins expected to be between 30% and 31% [1] - The stock has surged 862% over the past year and 67% year-to-date, with a trailing P/E ratio of approximately 196x [1] Demand and Supply Dynamics - Lumentum is currently operating at full capacity but is still 25-30% behind the demand, indicating a structural supply constraint [1] - The backlog for optical circuit switches (OCS) exceeds $400 million, and the company has received a multi-hundred-million-dollar order for co-packaged optics (CPO) deliverable in the first half of 2027 [1] - CEO Hurlston emphasized that the demand for AI data center infrastructure continues to grow, with no signs of a slowdown in sight [1]