“Multi-Year Shortages” Coming for Optical Suppliers, Says T. Rowe Price. Here’s What That Means for LITE and CIEN

Company Insights - Lumentum (NASDAQ:LITE) reported Q2 FY2026 revenue of $665.5 million, reflecting a 65.5% year-over-year increase, with a non-GAAP operating margin expansion of 1,730 basis points to 25.2% [4][5] - The company anticipates over 85% year-over-year revenue growth, driven by significant opportunities in optical circuit switches (OCS) and co-packaged optics (CPO), with a backlog exceeding $400 million for OCS and a multi-hundred-million-dollar order for CPO due in the first half of calendar 2027 [4][5] Industry Trends - The AI infrastructure buildout is creating performance demands that the current supply chain is not equipped to handle, particularly in NAND storage and optical connectivity, which are becoming strategic resources and potential bottlenecks [2] - Ciena (CIEN) reported Q1 FY2026 revenue of $1.427 billion, up 33.1% year-over-year, with direct cloud provider revenue surging 76%, representing 42% of total revenue, and raised full-year guidance to $5.9 billion to $6.3 billion [5]