Shares of Lumentum Holdings Inc. (NASDAQ: LITE) soared 9.69% in after-hours trading on Tuesday following the company's release of better-than-expected first-quarter fiscal 2026 results and an optimistic forecast for the upcoming quarter.

The optical and photonic products manufacturer reported Q1 adjusted earnings per share of $1.10, surpassing analysts' estimates of $1.03. Revenue for the quarter came in at $533.8 million, exceeding expectations of $525.4 million and representing a substantial 58.4% year-over-year increase.

Alan Lowe, President and CEO of Lumentum, commented on the results: "We delivered strong first quarter results with revenue and non-GAAP EPS above the guidance range. Our performance was driven by robust demand in data center, data center interconnect, and long-haul markets, coupled with operational improvements that expanded our non-GAAP operating margin by more than 1,500 basis points year-over-year."

Looking ahead, Lumentum provided an upbeat outlook for the second quarter, projecting revenue between $630 million and $670 million. The company also expects a non-GAAP operating margin of 20.0% to 22.0% and non-GAAP diluted earnings per share in the range of $1.30 to $1.50 for Q2.

The strong earnings report and positive guidance likely fueled investor enthusiasm, leading to the significant after-hours stock price jump. Lumentum's focus on high-growth areas such as optical circuit switches, co-packaged optics, and cloud transceivers appears to be resonating well with the market.