Lumentum Revenue More Than Doubles as AI Data-Center Optics Demand Accelerates
Lumentum reported roughly $1.01 billion in fiscal fourth-quarter revenue, up 109% year over year, as demand for 1.6T optical transceivers and high-power lasers accelerated with AI data-center buildouts.
Why it matters: Optical interconnects are becoming a critical scaling layer for AI clusters, broadening the infrastructure opportunity beyond accelerators into photonics and networking.
Lumentum Holdings reported another sharp acceleration in its artificial-intelligence infrastructure business as increasingly large AI data centers drive demand for high-speed optical connectivity. Fiscal fourth-quarter revenue reached approximately $1.01 billion, more than double the level recorded a year earlier. Adjusted earnings climbed to $3.23 per share from 88 cents, while adjusted operating margin expanded to 36.6% from 15%. Lumentum attributed part of the growth to advanced 1.6-terabit optical transceivers and ultra-high-power lasers used in increasingly dense computing infrastructure. The company expects the expansion to continue, projecting fiscal first-quarter 2027 revenue of approximately $1.225 billion to $1.275 billion and adjusted earnings of $4.05 to $4.35 per share. The results illustrate an important shift in AI infrastructure: GPUs remain highly visible, but deploying thousands of accelerators together increasingly depends on photonics, lasers and high-speed transceivers capable of moving enormous volumes of data between servers, racks and clusters. Lumentum shares had already risen sharply before the report, making continued execution and sustained hyperscaler demand important variables for investors.