Lumentum Holdings Inc
Q4 2026 Earnings
Market Reaction
Did LITE Beat Earnings? Q4 2026 Results
Lumentum Holdings delivered a blowout fiscal fourth quarter, posting adjusted EPS of $3.23 against the $2.97 consensus, an 8.79% beat, while revenue of $1.01 billion edged past the $987.70 million estimate and more than doubled year-over-year, up 109.3% from $480.70 million. The company's explosive growth was fueled by surging AI-driven demand for optical connectivity solutions, with its Components segment generating $649.40 million, up 102.7% year-over-year, and Systems revenue climbing 122.6% to $356.90 million. Non-GAAP gross margin expanded sharply to 50.4%, up 1,260 basis points from a year ago, reflecting the operating leverage now embedded in the business. Those <a href="https://247wallst.com/investing/2026/08/11/live-will-lumentums-q4-earnings-tonight-extend-its-600-1-year-rally/">powerful results</a> carried directly into guidance, with Lumentum projecting Q1 FY2027 revenue of $1.23 billion to $1.28 billion and non-GAAP EPS of $4.05 to $4.35, a trajectory management said brings the company to its target operating model more than a quarter ahead of schedule.
- AI compute workload growth driving demand for optical links in data centers
- Broad-based traction across product segments
- Non-GAAP gross margin expansion to 50.4%, up 1,260bps year-over-year
- Non-GAAP operating margin expansion to 36.6%, up 2,160bps year-over-year
- Components revenue grew 102.7% YoY; Systems revenue grew 122.6% YoY
“Lumentum is positioned at the heart of a secular industry shift. As AI compute workloads increase in both speed and bandwidth, data center architects are turning to optical links as a primary means of connectivity. While our Q4 results demonstrate broad-based traction, key growth drivers such as OCS solutions and our cloud module business, where we are advancing 1.6T adoption, are beginning to layer in. Increasing demand for ultra-high-power CPO lasers, an initial order for ELS modules, as well as our breadth of NPO engagements are the first signs that optics are starting to penetrate in-rack connectivity, significantly upping our optical TAM.”
Lumentum CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY2027, Lumentum expects net revenue of $1.225 billion to $1.275 billion, non-GAAP operating margin of 39.5% to 40.5%, and non-GAAP diluted net income per share of $4.05 to $4.35. Management noted the company is reaching its target model more than a quarter ahead of schedule, driven by accelerating AI demand.
LITE YoY Financials
LITE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.