Shares of Lumentum Holdings Inc. (NASDAQ: LITE) soared over 26% in after-hours trading on November 8, 2024, following the company's impressive fiscal Q1 2025 earnings results. The optical communications company reported better-than-expected financial performance, driven by strong demand for its products and effective cost management strategies.

For the quarter ended September 30, 2024, Lumentum posted an adjusted earnings per share of $0.18, beating the consensus analyst estimate of $0.12 by a staggering 50%. The company's revenue of $336.9 million also exceeded analysts' projections of $324.98 million, marking a 3.67% upside surprise.

The strong financial performance was fueled by robust growth in the Cloud and Networking segment, which saw revenue increase by 23% year-over-year to $282.3 million. Lumentum reported securing an additional hyperscale transceiver customer and setting a new record for Datacom laser chip orders, reflecting the growing demand for its products in the cloud and AI infrastructure markets.