J.P. Morgan reiterates Overweight rating as LITE reports $808.4M Q3 revenue, driven by optical infrastructure for AI clusters.
Lumentum Holdings Inc. (NASDAQ:LITE) reported fiscal third-quarter 2026 revenue of $808.4 million, a 90% increase from $425.2 million a year earlier. GAAP net income rose to $144.2 million, reversing a $44.1 million loss in the prior-year period. The growth reflects rising demand for optical components in AI data centers, where faster, lower-latency links are critical for scaling AI clusters.
The company’s performance aligns with broader industry trends, as NVIDIA and other customers advance co-packaged and near-packaged optics adoption. Management identified these technologies, along with optical circuit switches, as key future earnings drivers. J.P. Morgan maintained an Overweight rating, citing Lumentum’s strong position in the optical layer of AI infrastructure.
Lumentum supplies optical and photonic products for cloud networking, telecom, and industrial applications, with AI data centers emerging as a primary growth catalyst.