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Lumentum Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Up
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Key Takeaways
Lumentum's Q1 2026 revenues rose 58% year over year to $533.8M, topping estimates by 1.43%.
Non-GAAP EPS of $1.10 beat the Zacks Consensus Estimate by 6.8%, driven by AI and cloud strength.
Guidance sees Q2 revenues of up to $670M with 20-22% operating margin and higher EPS outlook.
Lumentum (LITE - Free Report) reported first-quarter fiscal 2026 non-GAAP earnings of $1.1 per share, surpassing the Zacks Consensus Estimate by 6.80%. The company reported non-GAAP earnings of $0.18 per share in the year-ago quarter.
Revenues of $533.8 million increased 58% year over year and 11% sequentially, beating the Zacks Consensus Estimate by 1.43%. The uptick can be attributed to cloud and AI growth.
In the pre-market trading, shares rose to 14.14%.
LITE 1Q26 Quarterly Details
Product-wise, Component revenues (71% of total revenues) increased 63.9% year over year to $379.2 million. Sequentially, revenues increased 18.5%.
Lumentum Holdings Inc. Price, Consensus and EPS Surprise
Systems revenues (29% of total revenues) increased 46.5% year over year to $154.6 million. However, sequentially, revenues declined 3.6%.
LITE 1Q26 Operating Details
First-quarter fiscal 2026 non-GAAP gross margin expanded 660 basis points (bps) from the year-ago quarter to 39.4%.
On a non-GAAP basis, research and development expenses increased 10% year over year to $69 million. Selling, General and Administrative expenses rose 10.1% year over year to $41.5 million in the reported quarter.
On a non-GAAP basis, operating income was $99.8 million compared with $10 million in the year-ago quarter. The operating margin was 18.7% compared with 3% a year ago.
The Adjusted EBITDA was $127.6 million compared with $37 million in the year-ago quarter.
LITE Balance Sheet Details
As of Sept. 27, 2025, Lumentum had cash and cash equivalents and short-term investments of $1.12 billion million compared with $8.77 billion as of June 28, 2025.
As of Sept. 27, 2025, the company had a long-term debt of $2.16 billion, down from $2.56 billion reported as of June 28, 2025.
LITE's Strong 2Q26 Guidance
For the second quarter of fiscal 2026, Lite expects revenues to be $630-$670 million.
Non-GAAP Operating margin is expected to be between 20% and 22%.
Non-GAAP earnings are expected to be between $1.30 per share and $1.50 per share.
Zacks Rank & Stocks to Consider
Lumentum currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Lumentum Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Up
Key Takeaways
Lumentum (LITE - Free Report) reported first-quarter fiscal 2026 non-GAAP earnings of $1.1 per share, surpassing the Zacks Consensus Estimate by 6.80%. The company reported non-GAAP earnings of $0.18 per share in the year-ago quarter.
Revenues of $533.8 million increased 58% year over year and 11% sequentially, beating the Zacks Consensus Estimate by 1.43%. The uptick can be attributed to cloud and AI growth.
In the pre-market trading, shares rose to 14.14%.
LITE 1Q26 Quarterly Details
Product-wise, Component revenues (71% of total revenues) increased 63.9% year over year to $379.2 million. Sequentially, revenues increased 18.5%.
Lumentum Holdings Inc. Price, Consensus and EPS Surprise
Lumentum Holdings Inc. price-consensus-eps-surprise-chart | Lumentum Holdings Inc. Quote
Systems revenues (29% of total revenues) increased 46.5% year over year to $154.6 million. However, sequentially, revenues declined 3.6%.
LITE 1Q26 Operating Details
First-quarter fiscal 2026 non-GAAP gross margin expanded 660 basis points (bps) from the year-ago quarter to 39.4%.
On a non-GAAP basis, research and development expenses increased 10% year over year to $69 million. Selling, General and Administrative expenses rose 10.1% year over year to $41.5 million in the reported quarter.
On a non-GAAP basis, operating income was $99.8 million compared with $10 million in the year-ago quarter. The operating margin was 18.7% compared with 3% a year ago.
The Adjusted EBITDA was $127.6 million compared with $37 million in the year-ago quarter.
LITE Balance Sheet Details
As of Sept. 27, 2025, Lumentum had cash and cash equivalents and short-term investments of $1.12 billion million compared with $8.77 billion as of June 28, 2025.
As of Sept. 27, 2025, the company had a long-term debt of $2.16 billion, down from $2.56 billion reported as of June 28, 2025.
LITE's Strong 2Q26 Guidance
For the second quarter of fiscal 2026, Lite expects revenues to be $630-$670 million.
Non-GAAP Operating margin is expected to be between 20% and 22%.
Non-GAAP earnings are expected to be between $1.30 per share and $1.50 per share.
Zacks Rank & Stocks to Consider
Lumentum currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Exodus movement, Inc. (EXOD - Free Report) , CoreWeave (CRWV - Free Report) and NVIDIA Corporation (NVDA - Free Report) . While Exodus Movement sports a Zacks Rank #1 (Strong Buy) at present, CoreWeave and NVIDIA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Exodus is set to report third-quarter 2025 results on Nov.10. EXOD shares have lost 24.6% year to date.
CoreWeave is slated to report third-quarter 2025 results on Nov. 10. CRWV shares have gained 189.4% year to date.
NVIDIA is set to report third-quarter 2025 results on Nov. 19. Nvidia shares have surged 47.9% year to date.