Lumentum sales more than double amid surging AI demand

Lumentum Holdings just turned in the kind of quarter that makes Wall Street analysts double-check their spreadsheets. The optical networking company reported $1.01 billion in revenue for the fourth quarter of fiscal year 2026, more than doubling the $480.7 million it pulled in during the same period last year. Lasers are the new gold rush Lumentum’s Components segment has been doing the heavy lifting, growing over 77% year-over-year in recent quarters. The stars of the show are products most people have never heard of: electro-absorption modulated laser (EML) chips and pump lasers. Certain EML lasers are seeing demand outstrip supply by more than 30%. CEO Michael Hurlston described the situation as demand being “through the roof” with no end in sight. The company expects to be completely sold out in some critical product areas through 2028. Narrow-linewidth lasers saw year-over-year growth exceeding 120% in one quarter. Pump lasers weren’t far behind at 80% growth. The company’s Optical Circuit Switches, or OCS, are adding another dimension to the growth story. Lumentum’s backlog for these switches crossed $400 million earlier this year, with quarterly shipment run rates already to...