Lumentum Holdings Inc. Earnings Recaps
Q3 2026
May 6, 2026
Shares dropped 3.3% following Q3 results as investors reacted to signs of demand constraints and ongoing supply bottlenecks that cap shipment growth despite strong revenue gains.
Key takeaways
- Revenue surged 90% year-over-year to $808 million, driven mainly by transceivers and laser chips.
- Operating margin expanded by over 2,100 basis points, supported by favorable product mix and operating leverage.
- Components revenue rose 77% year-over-year to $533 million, with narrow linewidth laser assemblies shipping over 120% more than last year; however, these remain sold out.
- Systems revenue grew 121% year-over-year to $275 million, led by a 40% sequential increase in cloud transceivers, though shipments stay below demand due to supply constraints.
- Capacity utilization is at a premium, particularly wafer fab capacity in Japan, limiting ability to fully capitalize on demand with supply bottlenecks expected to continue in near term.
Q2 2026
Feb 4, 2026
Lumentum Holdings reported exceptional financial performance in Q2 FY2026, achieving record revenues of $665.5 million, a remarkable 65% year-over-year growth. The company's non-GAAP operating margin surged over 1,700 basis points, driven by strong demand across its cloud transceivers, optical circuit switches, and co-packaged optics segments.
Key takeaways
- Recorded a record quarterly revenue of $665.5 million, surpassing prior projections.
- Anticipates Q3 revenue guidance with an $805 million midpoint, representing an 85% year-over-year increase.
- Backlog for optical circuit switches (OCS) exceeded $400 million, with significant growth expected in the second half of the calendar year.
- Improved profitability in cloud transceivers through enhanced yields and lower scrap rates, positioning Lumentum as a leading supplier for network transitions to 1.6T speeds.
- Initiated proactive capacity planning for upcoming scale-up optics market demands, targeting substantial growth by 2027.