Lumentum Holdings (LITE) Company Report

Lumentum's CEO, Michael Hurlston, noted that the company's initial forecast was significantly understated, leading to substantial share price appreciation and a focus on scaling operations within his less than a year tenure.
The transceiver business, currently generating $500 million annually, aims to reach $1 billion annually, but faces margin challenges, operating below the mid-30s.
Lumentum has doubled its EML capacity and expects a further 40% increase over the next three quarters (December 2025, March 2026, and June 2026), but anticipates remaining behind on supply through 2027 due to high demand.
The company is currently shipping Co-packaged Optics (CPO) solutions and expects a "pretty big step up" in revenue in the second half of 2026, continuing through 2027, driven by Ethernet-based switches and multiple customer engagements.
For Optical Cross-Connect Switches (OCS), Lumentum projects incremental revenue of $10 million in Q1 2025 ramping to $100 million in Q4 2025, though constrained by its manufacturing capacity and supply chain.

1 day ago

Transcript

Lumentum CEO Discusses Growth Drivers in Transceivers, EMLs, CPO, and OCS

LITE

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Lumentum aims to grow its transceiver business from $500 million to $1 billion annually, acknowledging it as a challenging segment with margin headwinds, and is focused on improving manufacturing and insourcing to enhance profitability.
The company anticipates a 40% increase in EML capacity over the next three quarters (Q1 2026, Q2 2026, Q3 2026) and expects the supply-demand imbalance for EMLs to continue through 2027 due to "unwavering" and "sustainable" demand.
Lumentum projects significant revenue growth for Co-Packaged Optics (CPO) starting in the second half of 2026 and for Optical Cross-Connect Switches (OCS) from $10 million incrementally in Q1 2025 to $100 million in Q4 2025, with OCS demand currently exceeding manufacturing capacity.
Traditional telecom components are experiencing "unprecedented levels of demand" driven by the "scale-across" opportunity, as hyperscalers adopt distributed data center infrastructure.

1 day ago

Transcript

LITE Reports Strong Q1 FY26 Results and Provides Upbeat Q2 FY26 Guidance

LITE

Earnings

Guidance Update

Revenue Acceleration/Inflection

LITE reported Q1 FY26 non-GAAP revenue of $533.8 million and diluted EPS of $1.10, both at the high end of their guided range.
The company's cloud and AI business is accelerating, driving a 58% year-over-year revenue increase and operating margin expansion of over 1,500 basis points.
Components revenue grew 18% quarter-over-quarter and 64% year-over-year, while Systems revenue increased 47% year-over-year despite a 4% sequential decline.
LITE provided Q2 FY26 non-GAAP guidance projecting revenue between $630 million and $670 million and diluted EPS between $1.30 and $1.50.

Nov 4, 2025, 10:00 PM

Presentation

Lumentum Holdings Reports Strong Q1 2026 Results and Raises Q2 Guidance

LITE

Earnings

Guidance Update

Revenue Acceleration/Inflection

Lumentum Holdings reported strong Q1 2026 results, with revenues surging 58% year-over-year to $533.8 million and non-GAAP EPS of $1.10. Non-GAAP operating margins expanded by over 1,500 basis points to 18.7%.
The company provided robust Q2 2026 guidance, projecting net revenue between $630 million and $670 million, which would be a new all-time quarterly record, and diluted non-GAAP EPS in the range of $1.30 to $1.50.
Growth is significantly driven by AI demand and cloud infrastructure, which now accounts for over 60% of total company revenue. The company anticipates sustained growth in cloud transceivers and expects Optical Circuit Switches (OCS) to reach a $100 million a quarter target by December 2026.
Lumentum is experiencing a significant supply-demand imbalance for EMLs, with a 25%-30% shortfall relative to customer demand, enabling targeted price increases and expected margin improvement. The company plans to increase indium phosphide Wafer Fab unit capacity by approximately 40% over the next few quarters.

Nov 4, 2025, 10:00 PM

Transcript

Lumentum Reports Strong Q1 2026 Results and Raises Q2 Guidance

LITE

Earnings

Guidance Update

Revenue Acceleration/Inflection

Lumentum reported Q1 fiscal year 2026 revenue of $533.8 million and non-GAAP EPS of $1.10, both at the high end of their guidance ranges. Revenue surged over 58% year-over-year, with over 60% of total company revenue now derived from cloud and AI infrastructure.
The company provided strong Q2 fiscal year 2026 guidance, projecting net revenue between $630 million and $670 million (midpoint $650 million) and diluted non-GAAP EPS between $1.30 and $1.50. This revenue midpoint is expected two quarters earlier than previously targeted for crossing the $600 million mark.
Growth is driven by strong demand for components, which increased 64% year-over-year to $379.2 million, and systems, which grew 47% year-over-year to $154.6 million, particularly cloud transceivers and laser chips for data centers.
Lumentum plans to increase its Indium Phosphide Wafer Fab unit capacity by approximately 40% over the next few quarters to meet robust customer demand for laser chips, with a focus on higher-margin 200-gig EMLs.
Confidence in the Optical Circuit Switch (OCS) market has increased, with a target of $100 million a quarter by December 2026.

Nov 4, 2025, 10:00 PM

Transcript

Lumentum Holdings Reports Strong Q1 FY2026 Results and Raises Q2 FY2026 Outlook

LITE

Earnings

Guidance Update

Revenue Acceleration/Inflection

Lumentum Holdings reported Q1 FY2026 revenue of $533.8 million, marking a 58% year-over-year increase, and non-GAAP diluted net income per share of $1.10.
The company provided Q2 FY2026 guidance, projecting net revenue between $630 million and $670 million and non-GAAP diluted net income per share between $1.30 and $1.50. This revenue midpoint of approximately $650 million is expected to surpass the $600 million quarterly revenue milestone two quarters ahead of schedule.
Over 60% of Lumentum's total company revenue is now derived from cloud and AI infrastructure, with AI demand powering growth across laser chips and optical transceivers.
Lumentum anticipates adding approximately 40% more unit capacity to its Indium Phosphide Wafer Fab over the next few quarters, aiming to address a 25%-30% shortfall in EML supply relative to customer demand.
The company has adopted a new financial reporting structure, presenting results as a single reportable segment with revenue breakouts for components ($379.2 million) and systems ($154.6 million).

Nov 4, 2025, 10:00 PM

Transcript

Lumentum Announces Q1 FY26 Financial Results

LITE

Earnings

Guidance Update

Revenue Acceleration/Inflection

Lumentum reported net revenue of $533.8 million for the first quarter of fiscal year 2026, reflecting 58% year-over-year growth.
For Q1 FY26, GAAP diluted net income per share was $0.05, and Non-GAAP diluted net income per share was $1.10.
The company held $1,121.8 million in total cash, cash equivalents, and short-term investments at the end of Q1 FY26.
Lumentum provided guidance for Q2 FY26, expecting net revenue in the range of $630 million to $670 million and Non-GAAP diluted earnings per share of $1.30 to $1.50.

Nov 4, 2025, 9:16 PM

8-K

Lumentum Announces First Quarter Fiscal Year 2026 Financial Results

LITE

Earnings

Guidance Update

Revenue Acceleration/Inflection

Lumentum reported net revenue of $533.8 million for the first quarter of fiscal year 2026, representing a 58 percent year-over-year growth.
For the first quarter of fiscal year 2026, GAAP diluted net income per share was $0.05, and non-GAAP diluted net income per share was $1.10.
The company held $1,121.8 million in total cash, cash equivalents, and short-term investments at the end of the first quarter of fiscal year 2026.
For the second quarter of fiscal year 2026, Lumentum expects net revenue in the range of $630 million to $670 million and non-GAAP diluted earnings per share of $1.30 to $1.50.

Nov 4, 2025, 9:03 PM

Press Release

Lumentum Showcases New Optical and Photonic Products at ECOC 2025

LITE

Product Launch

New Projects/Investments

Lumentum is showcasing ELSFP Transceivers for co-packaged optics (CPO) architectures, designed for hyperscale data centers and AI clusters, with sampling expected in calendar Q1 2026.
The company is also demonstrating its 1.6T DR8 TRO OSFP pluggable transceiver module for hyperscale Cloud and AI applications, which is currently ramping into volume production.
Additionally, Lumentum is sampling its Extended C+L Ultrawideband Nano-iTLA, a new laser assembly providing ultrawideband tunability for increased bandwidth demand from AI data centers and networks.

Sep 29, 2025, 8:18 AM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for Lumentum Holdings.

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What did Michael E. Hurlston say about margins?What are Lumentum Holdings's strategic priorities?How is Lumentum Holdings positioned vs competitors?How did Lumentum Holdings do last quarter?

Let Fintool AI Agent track Lumentum Holdings's earnings for you

Get instant analysis when filings drop