Lumentum Swings to $78M Q2 Profit, Raises Q3 Outlook to $830M
Lumentum swung to a net profit of $78.2 million in its fiscal Q2, reversing a $60.9 million loss a year earlier, as revenues jumped 65% to $665.5 million. The company raised its Q3 revenue guidance to $780–830 million (83–95% growth) and reported an optical circuit switch backlog above $400 million plus a multi-hundred-million co-packaged optics order for H1 2027.
1. Q2 Financial Results
Lumentum reported a net profit of $78.2 million for the quarter ended December, reversing a $60.9 million loss in the year-ago period. Net revenues rose 65% year-on-year to $665.5 million, hitting the high end of prior guidance and exceeding earnings-per-share forecasts.
2. Optical Components and Systems Demand
Demand for optical circuit switches has driven a backlog above $400 million, reflecting rapid scaling to meet customer needs. The company also secured an incremental multi-hundred-million-dollar order for co-packaged optics, scheduled for delivery in the first half of 2027.
3. Upgraded Q3 Outlook
Lumentum raised its fiscal Q3 revenue guidance to $780–830 million, implying growth of 83–95% from $425.2 million a year earlier. Management cited expanding opportunities in AI infrastructure and accelerating customer deployments as key growth drivers.
4. Stock Performance
Shares climbed more than 40% week-on-week, reaching an all-time intraday high of $558.38 before settling at $551.99. The rally reflects investor enthusiasm over the profitability turnaround and robust growth prospects.