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Lumentum Holdings (LITE)
NASDAQ:LITE
Earnings Data
Report Date
May 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
2.24Last Year’s EPS
0.57Same Quarter Last Year
Moderate Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive on execution and demand: record revenue, very large year-over-year growth, substantial margin expansion, a sizable OCS backlog (> $400M), accelerating transceiver momentum (1.6T), and visible progress on indium phosphide capacity all point to durable growth driven by cloud/AI adoption. Lumentum also disclosed several operational and timing challenges — notably wafer and factory capacity constraints, a 25%–30% supply shortfall, reliance on a few large customers, some program timing pushes, and the need to expand contract manufacturing — which introduce execution risk. On balance, the highlights (record financials, large multi‑year addressable markets, strong backlog and margin leverage) meaningfully outweigh the lowlights, though supply and execution remain the principal risks to sustaining the trajectory.Company Guidance
Record Quarterly Revenue and Strong Guidance
Q2 revenue of $665.5M set a company record and represented over 65% year-over-year growth. Management raised confidence in the near-term outlook and issued Q3 non-GAAP revenue guidance of $780M–$830M (midpoint $805M), implying an ~85%+ year-over-year increase at the midpoint and another new quarterly revenue record.
Material Margin Expansion and Profitability
Second quarter non-GAAP operating margin expanded to 25.2%, up ~1,730 basis points year-over-year and up 650 basis points sequentially. Non-GAAP gross margin was 42.5%, up 820 basis points year-over-year and up 310 basis points sequentially. Non-GAAP operating profit was $167.7M and adjusted EBITDA was $198.3M; non-GAAP EPS was $1.67 (GAAP EPS $0.89).
Components and Systems Revenue Upside
Components revenue reached $443.7M (up 17% sequentially and 68% year-over-year). Systems revenue was $221.8M (up 43% sequentially and 60% year-over-year). Components drove roughly two-thirds of the sequential increase expected in Q3, with systems contributing the remainder.
Optical Circuit Switches (OCS) Outperformance
OCS exceeded internal expectations: the company achieved its first $10M quarter three months early and now reports an order backlog well in excess of $400M, with the majority targeted for shipment in the second half of the calendar year, indicating significant ramp potential into 2027.
Cloud Transceiver Momentum and 1.6T Leadership
Cloud transceivers were a clear growth driver: transceiver revenue grew significantly in Q2 (approximately +$50M contribution in systems), the company reports improved time-to-market, better yields and lower scrap, and management states they are in the 'lead pack' for customers transitioning to 1.6T speeds.
CPO and External Light Source (ELS) Opportunities
Secured an additional multi‑hundred‑million dollar purchase order for ultra‑high‑power (UHP) lasers (shipments expected in 2027). Management highlighted a potential move into pluggable external light source modules (ELS), which could materially enlarge addressable market and increase ASPs relative to standalone laser chips.
Indium Phosphide Fab Expansion Progress and Capacity Line of Sight
Front‑loaded more than half of a planned 40% indium phosphide wafer capacity expansion this quarter. Management cited line of sight to additional capacity through Sagamihara and improved utilization of Caswell (UK) and Takao (Japan) fabs, plus potential further capacity starting in 2026.
Robust Product-Level Performers
EML laser shipments hit another quarterly company record driven by 100G lanes and ramping 200G devices. Pump laser revenue surged over 90% year-over-year. 200G lane devices represented ~5% of unit volume but supplied ~10% of data center laser chip revenue, with management targeting ~25% 200G mix by year-end (implying ASP uplift).
Solid Cash Position and Investment
Cash and short-term investments rose to $1.16B (up $33M in the quarter). The company invested $84M in CapEx focused on manufacturing capacity to support cloud and AI customers while increasing inventory by $39M to support expected growth.
LITE Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
LITE Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 03, 2026 | $435.10 | $465.54 | +7.00% |
Nov 04, 2025 | $188.36 | $232.75 | +23.57% |
Aug 12, 2025 | $119.66 | $120.23 | +0.48% |
May 06, 2025 | $64.42 | $66.24 | +2.83% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Lumentum Holdings (LITE) report earnings?
Lumentum Holdings (LITE) is schdueled to report earning on May 12, 2026, Before Open (Confirmed).
What is Lumentum Holdings (LITE) earnings time?
Lumentum Holdings (LITE) earnings time is at May 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is LITE EPS forecast?
LITE EPS forecast for the fiscal quarter 2026 (Q3) is 2.24.