Lumentum Outpaces Coherent as Data Center Demand Drives 65% Revenue Growth

Lumentum Holdings (LITE) is demonstrating significant market leadership over its competitor Coherent Corp (COHR) within the critical data center networking sector. The company reported a substantial 65.5% year-over-year revenue surge to $665.5 million for the second quarter of fiscal 2026. This growth is primarily fueled by the industry’s transition toward scale-out network architectures, which heavily favor Lumentum's specialized laser components. Specifically, surging demand for EML laser chips and optical circuit switching (OCS) technology has bolstered the company's competitive position. Furthermore, Lumentum's order backlog for systems and OCS has now exceeded $400 million, signaling robust growth prospects in the near term. This performance underscores Lumentum's pivotal role in the expanding AI infrastructure landscape.