Lumentum Holdings Inc is expected to report fiscal Q3 2026 revenue of $805.4 million (+89.4% YoY) and EPS of $2.24 (+293% YoY), while the current price of $955.37 sits well above the average analyst target of $839.13. Investors are primarily focused on the company's progress as a foundational engine for the AI revolution, specifically the demand for high-speed 1.6T transceivers and next-generation optical switches.
The company's Optical Circuit Switch (OCS) order backlog has reportedly surged past $400 million, signaling massive scaling for AI data center connectivity. Management's guidance for non-GAAP operating margins to expand toward 31% will be critical in justifying the stock’s recent record-breaking rally.