Lumentum’s Cloud & Networking segment now accounts for 86% of total revenue, reflecting rapid hyperscaler adoption of its optical interconnect solutions. The company’s externally modulated lasers (EMLs) remain the market leader, supplying critical components for next-generation AI data centers. In the most recent quarter, sales of EMLs grew by 48% year-over-year, driven by capacity expansions at major cloud providers and new design wins with leading GPU manufacturers.

Management projects fiscal 2026 revenue to reach $2.64 billion, a 61% increase over the current year’s run rate, underpinned by rising demand for high-bandwidth optics in scale-out network architectures. Earnings per share are expected to climb by 184%, as enhanced pricing power and operational leverage drive margin expansion. Capital expenditure by hyperscalers on AI infrastructure is forecast to grow by more than 30% annually, supporting continued order momentum through the next two fiscal years.

Tradr ETFs plans to launch a 2× long single-stock leveraged fund on Lumentum this month, listing on Cboe on January 27. The fund seeks twice the daily performance of the company’s common shares, catering to sophisticated investors and professional traders. This product represents the first leveraged ETF strategy on Lumentum, highlighting growing market interest in capitalizing on the firm’s role in the AI optics supply chain.