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 (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
EPS (Diluted)
$1.50
+334.38% YoY
Operating Income
$174.5M
+562.86% YoY
Source: SEC XBRL
LITE's fiscal Q3 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.23 | 3.03 | Beat +6.6% |
| Mar 2026This filing | 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% |
Adjusted (non-GAAP) EPS of $2.37 versus the $2.33 analyst consensus — a +1.6% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.50.
Compiled by AI from 10-Q Item 2 of this filing
Q3 FY2026 revenue increased $383.2M, or 90.1% year over year, to $808.4M. Components revenue rose $232.5M to $533.3M, primarily from laser-chip and laser-assembly shipment ramps for intra-data-center, data-center-interconnect, and long-haul applications; Systems revenue rose $150.7M to $275.1M, led by cloud transceivers and initial optical-circuit-switch shipments.
Source: 10-Q Item 2 MD&A
The company stated that optical circuit switch shipments contributed more than $25.0M of revenue in Q3 FY2026, and management expects manufacturing expansion over coming quarters to support future growth. Cloud transceiver revenue increased by more than $137.0M, although lower average selling prices partly offset higher shipment volume.
Source: 10-Q Item 2 MD&A
Gross margin rose to 44.2% from 28.8% in the prior-year quarter. Management attributed approximately 46% of the improvement to lower manufacturing costs as a percentage of revenue, primarily from higher internal factory utilization; approximately 37% to a mix shift toward higher-margin products; and approximately 17% to lower acquired-intangible amortization as a percentage of revenue.
Source: 10-Q Item 2 MD&A
Two customers accounted for 26% and 12%, respectively, of Q3 FY2026 total revenue. Revenue shipped outside the United States represented 77.0% of quarterly revenue, with Asia-Pacific representing 57.5% and the Americas 36.0%.
Source: 10-Q Item 2 MD&A
Lumentum reorganized during Q1 FY2026 from two reportable segments, Cloud & Networking and Industrial Tech, into one integrated reporting segment. Separately, interest and investment income increased in Q3 FY2026 partly because $2.0B of Series A Convertible Preferred Stock proceeds were invested in money market funds.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 4 high, 1 medium, 0 low
Lumentum faces potential cost increases, supply disruptions, and reduced market access from evolving tariffs, export controls, sanctions, and retaliatory measures. The filing specifically notes that China’s controls over rare earth metals and other critical minerals could constrain materials availability, raise manufacturing costs, reduce margins, or limit production.
Source: 10-Q Item 1A Risk Factors
The company stopped all product shipments to Huawei at the beginning of calendar year 2024 after determining that its products may be subject to Export Administration Regulations restrictions. Lumentum also received subpoenas from the Bureau of Industry and Security and the Department of Justice regarding its Huawei business; potential consequences cited include legal costs, penalties, loss of export privileges, and debarment from U.S. government contracts.
Source: 10-Q Item 1A Risk Factors
Lumentum relies on a limited number of suppliers, including sole-source suppliers for certain materials, equipment, and components, and does not have long-term agreements with many of them. A supplier failure, delay, defective material, price increase, or inability to secure alternative sources could impair production, increase costs, and reduce profitability.
Source: 10-Q Item 1A Risk Factors
Two customers represented 26% and 12% of Q3 FY2026 revenue, creating exposure if either customer reduces orders or changes sourcing. The company also warns that customer inventory corrections, cancellations, delayed purchase decisions, and changing backlog patterns can make revenue timing and demand difficult to forecast.
Source: 10-Q Item 2 MD&A; 10-Q Item 1A Risk Factors
Management expects gross and operating margins to vary with product mix, pricing competition, material and labor costs, utilization, component availability, tariffs, and inventory-related charges. This risk is relevant following Q3 FY2026 gross-margin expansion to 44.2%, because the filing states that market transitions and price-sensitive, concentrated customers may put future gross margins under pressure.
Source: 10-Q Item 2 MD&A; 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Profit $M | 357.00 $M | 122.50 $M | +191.43% |
Operating Income $M | 174.50 $M | -37.70 $M | +562.86% |
Net Income $M | 144.20 $M | -44.10 $M | +426.98% |
EPS (Basic) $ | 1.99 $ | -0.64 $ | +410.94% |
EPS (Diluted) $ | 1.50 $ | -0.64 $ | +334.38% |
R&D Expense $M | 90.60 $M | 75.90 $M | +19.37% |
SG&A Expense $M | 90.80 $M | 112.00 $M | -18.93% |
Answers draw on this SEC filing and the data on this page
Lumentum delivered 83% revenue growth and positive operating income in FY2026 on AI-driven optical demand, but a $7.76B debt extinguishment loss drove a large net loss.
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.
Other companies in Communications Equipment