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Lumentum Quarterly Revenue Doubles to $1B

1 d ago

Lumentum Holdings Inc. reported fiscal Q4 2026 revenue of $1.006 billion, more than doubling year-over-year, driven by surging AI and cloud demand for optical connectivity, with full-year revenue up 83.2% to $3.014 billion. The San Jose-based optical and photonic products maker saw its Components segment revenue grow 102.7% year-over-year to $649.4 million, fueled by record shipments of 100G and 200G electro-absorption modulated lasers (EMLs) and expanding continuous wave (CW) laser sales. Systems segment revenue jumped 122.6% to $356.9 million, powered by record 800G cloud transceiver module shipments and initial 1.6T transceiver deliveries. CEO Michael Hurlston highlighted that data-center architects are increasingly turning to optical links as AI compute workloads demand higher speed and bandwidth. Quarterly gross margin improved to 50.4% on a non-GAAP basis, up from 37.8% a year ago, while operating income reached $368.8 million with a 36.6% margin. Net income rose to $326.3 million ($3.23 per diluted share), exceeding guidance. The company guided fiscal Q1 2027 revenue to a record $1.225–1.275 billion, up over 130% year-over-year, with operating margin expected to reach 39.5–40.5%. Lumentum continues investing in manufacturing capacity for cloud and AI customers, with capital expenditure increasing to $167 million in Q4. The company also noted progress in co-packaged optics (CPO) lasers and optical circuit switches (OCS), expanding its total addressable market in data-center interconnect applications.