Live: Lumentum Announces Q4 Earnings Tonight After 416% Rally

"The Street expects revenue of around $652 million, which would mark 20%+ sequential growth from Q1's $533.8 million. EPS estimates of $1.41 suggests margins are expanding alongside revenue. That's the story here. Last quarter delivered 58% year-over-year revenue growth and 1,500 basis points of operating margin expansion. The company beat on earnings despite revenue slightly surpassing estimates, proving that margin discipline matters more than top-line perfection."

"Coherent ( NYSE: COHR) is up 159% over the past year, and even Applied Optoelectronics ( NASDAQ: AAOI) has climbed 68% despite being unprofitable. Coherent just beat by 11.5% in its most recent quarter, showing the sector has legs. AAOI, on the other hand, missed badly in Q3 2025, reporting a loss of negative $0.09 versus estimates of negative $0.01. The good news is that almost everyone in the optics space is predicting massive growth ahead, even if recent quarters have been 'lumpy.'"

"The sector tailwind is real. Hyperscalers are pouring capital into AI infrastructure, and optical transceivers are the plumbing. CEO Michael Hurlston said last quarter that "strong momentum across data center, data center interconnect, and long-haul markets" was driving results. He also noted that optical circuit switches and co-packaged optics, two major growth engines, haven't even kicked in yet. If those start contributing meaningfully, the story accelerates."

Lumentum reports Q4 2025 earnings after the close on February 3, 2026, with the stock up 416% year-over-year driven by AI data center demand. Street revenue estimates are roughly $652 million, implying over 20% sequential growth from Q1's $533.8 million, and EPS estimates of $1.41 imply expanding margins. Last quarter showed 58% year-over-year revenue growth and 1,500 basis points of operating margin expansion. Q1 gross margin was 39.4% and guidance calls for 20%–22% operating margins in Q2. Optical networking peers show mixed results while hyperscalers continue heavy AI infrastructure spending, leaving valuation as the central question.

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