Lumentum Reports 65.5% Q2 Revenue Growth, Guides Q3 to $780M–$830M
Lumentum Holdings reported Q2 FY2026 revenue of $665.5M, up 65.5% year-over-year, and guided Q3 revenue to $780M–$830M while shares jumped on its March 6 inclusion in the S&P 500. NVIDIA committed a $2B investment and Lumentum holds a $400M optical circuit switch backlog for shipment in 2H26.
1. Q2 FY2026 Results and Q3 Guidance
Lumentum delivered Q2 revenue of $665.5 million, marking a 65.5% increase year-over-year, driven by surging demand for datacom and telecom products. Management issued Q3 guidance of $780 million to $830 million, implying more than 85% year-over-year growth and reflecting strong order momentum.
2. S&P 500 Inclusion and Market Impact
Lumentum was added to the S&P 500 on March 6, prompting index funds to accumulate shares and providing a mechanical buying tailwind. This inclusion has bolstered liquidity and supported the recent 8% stock jump.
3. Strategic Investment and Production Ramp
NVIDIA invested $2 billion in Lumentum, underscoring confidence in optical infrastructure as an AI scaling bottleneck. The company is expanding electro-absorption modulated laser production and expects to ship a $400 million optical circuit switch backlog in the second half of 2026.