Lumentum Holdings Inc. (LITE) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Nov 3, 2026.

Consensus is $3.82 EPS for Sep 2026 across 6 estimates, ranging $3.78 to $3.87.

LITE Jun 2026

Reported Aug 11, 2026 · after the close

: 0.76%
: +13.63%

: $2.62
: $2.64
: —
: —

Highlights

Revenue acceleration: Fiscal Q4 revenue reached $1.006 billion, up 24.5% sequentially and 109.3% year over year, versus $808.4 million in Q3 and $480.7 million a year earlier.
AI-led outlook: Lumentum guided fiscal Q1 2027 revenue to $1.225 billion-$1.275 billion, a midpoint of $1.25 billion, with non-GAAP operating margin of 39.5%-40.5% and non-GAAP diluted EPS of $4.05-$4.35.
Underlying earnings: Non-GAAP net income was $326.3 million, or $3.23 per diluted share, compared with $225.7 million and $2.37 in Q3 and $63.3 million and $0.88 in the year-ago quarter.
Expectation comparison: Reported EPS of $2.64 was 2 cents above the $2.62 consensus estimate, a 0.76% surprise.
Margin expansion: Non-GAAP operating margin rose to 36.6% from 32.2% in Q3 and 15.0% a year earlier; non-GAAP gross margin increased to 50.4% from 47.9% and 37.8%, respectively.
Product growth: Components revenue was $649.4 million, up 21.8% sequentially and 102.7% year over year, while systems revenue was $356.9 million, up 29.7% sequentially and 122.6% year over year.
GAAP distortion: GAAP net loss was $7.162 billion, or $84.65 per diluted share, because equitization of convertible notes produced a one-time, non-cash $7.8 billion debt-extinguishment loss; GAAP operating income was $279.3 million.
Balance sheet and capital structure: Cash, cash equivalents and short-term investments totaled $2.7 billion, down $433.9 million sequentially but up $1.9 billion from fiscal year-end 2025, after the company exchanged shares to settle certain convertible notes.

Analysis

Lumentum’s fiscal fourth quarter was a sharp continuation of the AI-driven optical growth ramp. Revenue of $1.006 billion rose 24.5% from Q3’s $808.4 million and more than doubled the $480.7 million reported a year ago. Reported EPS of $2.64 modestly exceeded the $2.62 consensus estimate, while the company’s non-GAAP measure was $3.23 per diluted share, up from $2.37 in Q3 and $0.88 in Q4 fiscal 2025. Fiscal-year revenue reached $3.014 billion, up 83.2% from $1.645 billion, and non-GAAP EPS increased to $8.67 from $2.06.

The defining feature was operating leverage alongside demand acceleration. Non-GAAP operating margin expanded 440 basis points sequentially to 36.6%, and gross margin reached 50.4%. Components and systems both posted strong growth, with systems advancing 122.6% year over year. Management expects the ramp to accelerate further, guiding Q1 fiscal 2027 revenue to a $1.25 billion midpoint and non-GAAP operating margin near 40%, saying its target revenue model is arriving more than a quarter early. GAAP results were not representative of operating performance: a $7.8 billion non-cash loss from convertible-note equitization drove the quarter and full year to GAAP losses.

AI demand and outlook

Management framed the quarter around optical connectivity moving deeper into AI data-center architecture. It cited rising demand for higher-speed and higher-bandwidth links, with newer growth drivers beginning to layer onto the existing business.

Q1 guidance: Fiscal Q1 2027 revenue is expected at $1.225 billion-$1.275 billion, implying a $1.25 billion midpoint and approximately 24% sequential growth from Q4’s $1.006 billion.
Profitability outlook: Non-GAAP operating margin is guided to 39.5%-40.5%, above Q4’s 36.6%, while non-GAAP diluted EPS is expected at $4.05-$4.35.
Emerging products: Management highlighted optical circuit switching solutions, cloud modules supporting 1.6T adoption, ultra-high-power co-packaged optics lasers, an initial ELS-module order and multiple next-generation photonics engagements.

Quarterly financial performance

The quarter extended a rapid recovery and expansion from the loss-making period in fiscal 2025. Revenue and operating income both reached new highs in the reported periods, although the comparisons also reflect the unusually weak year-ago base.

Revenue: Q4 revenue was $1.006 billion, up from $808.4 million in Q3 and $480.7 million in Q4 fiscal 2025.
GAAP operations: GAAP operating income was $279.3 million, versus $174.5 million in Q3 and an $8.4 million operating loss a year earlier; GAAP operating margin was 27.8%, compared with 21.6% and negative 1.7%.
Full year: Fiscal 2026 revenue was $3.014 billion, up 83.2% year over year, with GAAP operating income of $524.8 million versus a $180.1 million loss in fiscal 2025.

Margin and earnings leverage

Profit growth outpaced revenue growth as mix and scale improved. The non-GAAP measure is the more useful indicator of the operating quarter because GAAP earnings included the convertible-note accounting charge.

Gross margin: Non-GAAP gross margin was 50.4%, up 250 basis points sequentially and 1,260 basis points year over year. GAAP gross margin was 47.4%, up from 44.2% in Q3 and 33.3% a year earlier.
Operating margin: Non-GAAP operating income increased to $368.8 million from $260.7 million in Q3 and $72.3 million a year earlier, lifting margin to 36.6% from 32.2% and 15.0%.
Adjusted earnings: Non-GAAP net income rose 44.5% sequentially to $326.3 million and 415.5% year over year, while non-GAAP diluted EPS was $3.23 versus $2.37 and $0.88.
Annual profitability: Fiscal 2026 non-GAAP operating margin was 29.8%, compared with 9.7% in fiscal 2025; non-GAAP net income was $782.3 million versus $146.4 million.

Components and systems

Growth was broad across Lumentum’s two reported product types, with systems growing faster sequentially and year over year than components.

Components: Revenue was $649.4 million, representing 64.5% of Q4 revenue. It increased 21.8% sequentially from $533.3 million and 102.7% year over year from $320.4 million.
Systems: Revenue was $356.9 million, or 35.5% of total revenue. It rose 29.7% sequentially from $275.1 million and 122.6% year over year from $160.3 million.
Fiscal-year mix: Components generated $2.006 billion in fiscal 2026 revenue, up 79.7%, while systems contributed $1.008 billion, up 90.7%.

Debt conversion and liquidity

The quarter included a major capital-structure event that obscured GAAP earnings but reduced the company’s longer-term debt burden. Lumentum exchanged common shares to settle certain 2026, 2028 and 2029 convertible notes.

Non-cash charge: The equitization generated a $7.8 billion loss on debt extinguishment, including $7.8 billion of conversion value above principal, transaction costs and unamortized issuance costs. This drove the $7.162 billion GAAP net loss.
Liquidity: Cash, cash equivalents and short-term investments were $2.7 billion at June 27, 2026, down $433.9 million sequentially but up $1.9 billion from June 2025.
Debt position: Current debt was $1.597 billion and long-term debt was $40.5 million at quarter-end, compared with $10.6 million and $2.563 billion, respectively, at fiscal 2025 year-end.

Lumentum Holdings Inc.

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