Optical Components

Analysis and opinion on 1Q26 company results.

Uncovering who uses which DSP, and which DSP vendors ship the most volume. Updated with the latest data from 2025.

Datacom revenue crossed $6 billion for the quarter and $19 billion for the year as more than 42 million 400G+ datacom modules shipped. Annual Telecom revenue reached new heights as well, up 35% over 2024.

CPO is still inevitable, but is it now imminent? The next twelve months should provide an answer.

Analysis and opinion on 4Q25 company results.

Massive increases in hyperscale capex have necessitated an increase in our Datacom revenue and module shipments forecasts.

2025 results are updated and the forecast is now 3x higher for 2026 and greater than 40% higher for 2029.

In this update to our 1Q25 report, we cover the trends favoring pluggable optics as well as the companies positioned to benefit.

Datacom revenue passed $5B with 800GbE module growth. Telecom revenue reached a 4-year peak with pluggable coherent modules and components.

In this update to our OCS report we cover more vendors and technologies, investigate additional applications, and update our market forecast.

Analysis and opinion on 3Q25 company results.

The number of venture-backed optical component startups has exploded – the Optical Component Start-Up Tracker identifies these companies and their value propositions.

Datacom revenues and module shipments roared back from last quarter’s pause and Telecom revenue has recovered. 400ZRx pluggable shipments have slowed, but embedded high speed coherent made up the difference in deployed bandwidth.

Optimism ruled at CIOE this year, with vendors and operators eager to talk about the latest datacom speeds, emerging optical technologies, and the unique ways that China builds and consumes optics.

This report initiates our coverage of Coherent Lite.

Telecom and Datacom growth was slow this quarter, but the new 6” InP fab should drive revenue starting next quarter.

Datacom is booming across the industry, and Lumentum is riding the wave with both optical modules and components.

The 2Q25 Optical Components Report will include a breakout of 1.6TbE optics into SR, DR, FR, and LR for the first time.

AI Deployment Demand from Meta Exceeds Earlier Expectations

Datacom revenues and shipments slowed, 400ZRx shipments kept Telecom revenue growing for a fourth consecutive quarter.