Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Lumentum's fiscal 2026 was defined by surging AI/ML datacenter demand for laser chips, laser assemblies, and cloud transceivers, which produced a return to positive operating income and substantial cash-flow growth. Management attributes the expansion to a ramp in laser chip and laser assembly shipments and to cloud transceiver product lines that grew more than 173%, with initial optical circuit switch shipments contributing over $90.0M. The main tension is that the strong underlying operating performance was overshadowed by a $7.76B loss on debt extinguishment, which pushed net income deeply negative for the year.
Revenue
$3.01B
+83.22% YoY
EPS (Diluted)
-$92.96
-25224.32% YoY
Gross Margin
41.7%
+13.7 pts YoY
Operating Income
$524.8M
+391.39% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing · Audit Opinion: Unqualified (Source: Report of Independent Registered Public Accounting Firm)
Next LITE earnings expected
Source: SEC XBRL
Lumentum Holdings (LITE) reported FY2026 revenue of $3.01B, up 83.2% year over year. Operating margin was 17.4%, against -10.9% a year earlier. Operating cash flow was $751.4M, up 494.9% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 3.23 | 3.03 | Beat +6.6% |
| Mar 2026 | 2.37 | 2.33 | Beat +1.6% |
| Dec 2025 | 1.67 | 1.42 | Beat +17.4% |
| Sep 2025 | 1.10 | 1.05 | Beat +4.9% |
Reported EPS of $3.23 versus the $3.03 analyst consensus — a +6.6% beat for Jun 2026.
2 reported segments · SEC XBRL
Segment revenue totals $3.01B, which is the $3.01B of consolidated revenue on the income statement.
Compiled by AI from 10-K Item 7 of this filing
During Q1 FY2026 Lumentum reorganized from two reportable segments into a single integrated enterprise, with the CEO/CODM now reviewing consolidated net income (loss) to allocate resources and evaluate financial performance.
Source: 10-K Item 7 MD&A
Components growth was led by laser chip and laser assembly shipments, which represented 78% of the segment's growth; Systems growth was driven by cloud transceiver product lines that grew more than 173% and initial optical circuit switch shipments contributing over $90.0M.
Source: 10-K Item 7 MD&A
A single end customer accounted for 26.6% of total net revenue in FY2026, up from 15.4% in FY2025, while a second customer accounted for 15.0%, increasing dependence on a few large customers.
Source: 10-K Item 7 MD&A
Gross margin rose to 41.7% from 28.0% in FY2025, primarily driven by higher revenue from laser chip, laser assembly, and data transport products.
Source: 10-K Item 7 MD&A
In Q4 FY2026 the company released $236.3M of valuation allowance on most U.S. federal and state deferred tax assets, concluding they were more likely than not to be realized.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 3 high, 2 medium, 0 low
Lumentum has been unable to sell certain products to Huawei since early calendar 2024 under BIS rules, eliminating a historically significant customer. The company received subpoenas from BIS and DOJ regarding prior Huawei-related shipments and may face penalties or further restrictions.
Source: 10-K Item 1A Risk Factors
U.S. tariffs and Section 232/301 investigations targeting semiconductors, critical minerals, and industrial goods, along with Chinese export controls on rare earth metals, could raise costs, limit access to materials, reduce margins, and disrupt operations.
Source: 10-K Item 1A Risk Factors
The company relies on a limited number of suppliers, including sole sources for certain materials and components. China's export controls on rare earth metals and restrictions affecting substrate supply from Japan have already impacted availability and costs.
Source: 10-K Item 1A Risk Factors
Revenue is highly concentrated, with the largest customer representing 26.6% and the second 15.0% of FY2026 net revenue. Order cancellations, delays, or changes in customer purchasing patterns could materially reduce revenue, and backlog may not be a reliable indicator of future sales.
Source: 10-K Item 1A Risk Factors
Margins may fluctuate due to product mix, price competition, component costs, tariffs, inflation, and manufacturing underutilization. The company warns that failure to sustain or improve gross margins could reduce profitability.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.01 $B | 1.65 $B | +83.22% |
Gross Profit $B | 1.26 $B | 0.46 $B | +173.08% |
Operating Income $M | 524.80 $M | -180.10 $M | +391.39% |
Net Income $B | -6.935 $B | 0.026 $B | -26876.45% |
EPS (Basic) $ | -92.96 $ | 0.38 $ | -24563.16% |
EPS (Diluted) $ | -92.96 $ | 0.37 $ | -25224.32% |
R&D Expense $M | 356.50 $M | 303.90 $M | +17.31% |
SG&A Expense $M | 363.20 $M | 348.20 $M | +4.31% |
Answers draw on this SEC filing and the data on this page
Lumentum (LITE) delivered a sharp Q3 FY2026 turnaround, with revenue rising 90.1% year over year to $808.4M and net income reaching $144.2M, driven by AI/cloud-related demand, stronger factory utilization, and a richer product mix. Source: 10-Q Item 2 MD&A, pp.53-56
LITE delivered a dramatic Q2 FY2026 turnaround, swinging to $78.2M net income from a $60.9M loss a year ago, driven by a 137.5% surge in gross profit, though a near-tenfold spike in current liabilities warrants close attention.
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