Lumentum Holdings (LITE) Company Report

On December 19, 2025, Lumentum Holdings Inc. entered into a senior secured revolving credit facility for an aggregate principal amount of $400.0 million with Wells Fargo Bank, National Association as administrative agent.
The facility, which matures on December 19, 2030, includes a $23.0 million sublimit for letters of credit and allows for incremental revolving commitments and/or term loans up to an unlimited amount. The proceeds are designated for working capital and general corporate purposes.
Borrowings will bear interest at either a base rate plus a margin of 0.50% to 1.50% or a term Secured Overnight Financing Rate (SOFR) plus a margin of 1.50% to 2.50%, with a quarterly commitment fee of 0.15% to 0.35% on unused availability, all dependent on the Company's secured net leverage ratio.
The Credit Agreement contains financial covenants requiring the Company to maintain a secured net leverage ratio of less than or equal to 3.25:1.00 and an interest coverage ratio of no less than 3.00:1.00, tested at the end of each fiscal quarter.

14 hours ago

8-K

Lumentum Discusses Strong Demand, Capacity Constraints, and Growth in Optical Technologies

LITE

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Lumentum is experiencing unprecedented demand and capacity constraints across its entire product portfolio, with EML lasers sold out for 2026 and largely booked through 2027.
The company is increasing prices and securing longer-term commitments from larger customers due to the seller's market, and is on track to increase EML capacity by 40% over the next couple of quarters.
The OCS (Optical Cross-Connect Switch) business is projected to grow significantly, aiming for approximately $100 million per quarter by December 2026, and CPO (Co-Packaged Optics) adoption is anticipated to reach 40%-50% of switches for the first user by late 2027/2028.
Total optical ports for hyperscalers are estimated to grow from 40-50 million in the current year to 70-75 million in 2026, with 1.6T ports accounting for 15-20 million of that total.
Lumentum's primary challenge in meeting demand is capacity, and the company is focusing on serving its three main hyperscaler customers.

Dec 10, 2025, 5:15 PM

Transcript

Lumentum Discusses Strong Demand and Capacity Constraints at Barclays Conference

LITE

Revenue Acceleration/Inflection

New Projects/Investments

Lumentum is experiencing widespread demand exceeding supply across its product portfolio, with capacity constraints and demand visibility extending through 2027 for certain products like EML lasers.
The company is leveraging this seller's market by implementing elevated pricing for longer-term customer commitments.
Lumentum projects Optical Circuit Switches (OCS) revenue to reach approximately $100 million per quarter by December 2026, driven by strengthening demand and increased customer engagement.
The company estimates the total optical port count for hyperscalers to be around 75 million in 2026, with 55-60 million for 100G or 800G and 15-20 million for 1.6T.
Lumentum anticipates significant adoption of Co-Packaged Optics (CPO, projecting that 40%-50% of switches for the first user will be CPO-based by late 2027 to 2028.

Dec 10, 2025, 5:15 PM

Transcript

Lumentum Discusses Strong Demand for EMLs, OCS, and Co-Packaged Optics Growth

LITE

New Projects/Investments

Revenue Acceleration/Inflection

Product Launch

Lumentum, a leading optical infrastructure provider for data centers, projects its 200 gig per lane Externally Modulated Lasers (EMLs) to increase from 10% of volumes in calendar Q1 2026 to 25% in calendar Q4 2026, driving a two-times ASP bump and higher gross margins.
The company is significantly behind demand for EMLs, reporting 20% at fiscal year-end and forecasting 30% by mid-2026, despite plans to add 40% additional capacity by June 2026 (relative to September 2025 quarter close), with supply-demand equilibrium not expected until at least 2027.
Lumentum expects substantial growth from its Optical Circuit Switches (OCS) business, targeting an increase from $10 million in calendar Q1 2026 to $100 million of incremental revenue by calendar Q4 2026, and anticipates material revenue from co-packaged optics in the second half of calendar 2026.
The CEO identifies OCS, optical scale-out, and optical scale-up as "huge growth drivers" that are currently "underappreciated" and not yet factored into financial numbers, indicating that 2026 will be a very good year for the company as these contributions materialize.

Dec 8, 2025, 3:40 PM

Transcript

Lumentum CEO Highlights Strong Demand for Lasers, Growth in OCS and Co-packaged Optics

LITE

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Lumentum, a leading provider of EMLs for data centers, holds 50% to 60% of the world's EML volume and is experiencing significant demand that is expected to outstrip supply, projecting to be 30% behind by mid-2026 despite adding 40% additional capacity.
The company anticipates a substantial shift to 200 gig per lane lasers, expecting them to comprise 10% of volumes in calendar Q1 and 25% in calendar Q4, which is projected to result in a roughly two times ASP bump and improved gross margins.
Lumentum is targeting significant growth in Optical Circuit Switches (OCS), aiming for $10 million in Q1 to grow to $100 million of incremental dollars by calendar Q4 2026, driven by demand that currently exceeds their manufacturing capacity.
Co-packaged optics (CPO) are expected to become a material revenue driver in the back half of calendar 2026, with Lumentum partnering on NVIDIA's external light source solution for CPO.

Dec 8, 2025, 3:40 PM

Transcript

Lumentum CEO Discusses Growth Drivers and Capacity Expansion at UBS Conference

LITE

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

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.

Dec 3, 2025, 10:35 PM

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.

Dec 3, 2025, 10:35 PM

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

Earnings Transcripts

Quarterly earnings call transcripts for Lumentum Holdings.

Q1 2026

Nov 4, 2025

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Q4 2025

Aug 12, 2025

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Q3 2025

May 6, 2025

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View All Transcripts

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Lumentum Holdings (LITE)

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