Lumentum Revenue Doubles Year-Over-Year as AI Demand Accelerates
The optical-components maker posted $1.006 billion in quarterly revenue, surpassing the high end of its own guidance, and projected another 24% sequential jump for the current quarter.
Lumentum Holdings (LITE), the optical-components maker, reported fiscal fourth-quarter revenue of $1.006 billion, more than doubling from a year earlier and topping the high end of its prior forecast, as demand for advanced laser components used in artificial-intelligence infrastructure continued to build.
The results marked an acceleration from the prior quarter's pace. Revenue rose 24.5% sequentially and 109.3% year over year, compared with 21.5% and 90.1% respectively in the fiscal third quarter. For the full fiscal year, revenue reached $3.014 billion, up 83.2% from $1.645 billion in fiscal 2025.
Profitability expanded alongside the top line. Non-GAAP gross margin widened to 50.4%, up 250 basis points sequentially and 1,260 basis points from 37.8% a year ago, continuing a multi-quarter climb from 42.5% in the fiscal second quarter. Non-GAAP operating margin reached 36.6%, up 440 basis points from the prior quarter and 2,160 basis points from 15.0% a year earlier. On a GAAP basis, operating margin was 27.8%, swinging from negative 1.7% in the year-ago period. Non-GAAP diluted earnings came to $3.23 a share, a 267% increase from $0.88 a year prior.
Systems revenue grew faster than the components business on a sequential basis, rising 29.7% to $356.9 million, while Components revenue climbed 21.8% to $649.4 million. Systems' share of total revenue increased to 35.5% from 34.0% in the prior quarter, reflecting growing demand for integrated solutions alongside individual laser and photonic components.
The company's prior fourth-quarter guidance, issued after the fiscal third quarter, had called for revenue of $960 million to $1.01 billion, non-GAAP operating margin of 35.0% to 36.0%, and non-GAAP EPS of $2.85 to $3.05. Actual results landed at or above the top of each range. Lumentum is reaching its target operating model more than a quarter ahead of schedule.
Looking ahead, Lumentum guided fiscal first-quarter 2027 revenue to a midpoint of $1.25 billion, implying a further 24% sequential increase. Non-GAAP operating margin is forecast at 39.5% to 40.5%, representing roughly 300 to 400 basis points of expansion from the quarter just ended, and non-GAAP EPS is projected at $4.05 to $4.35, up 25% to 35%.
A non-cash charge of $7.8 billion tied to the equitization of convertible notes drove a GAAP net loss of $7.16 billion for the quarter, though the company's cash position remained substantial at $2.7 billion in cash, equivalents, and short-term investments. NVIDIA announced a $2 billion strategic investment in Lumentum in March 2026, along with a multi-billion-dollar purchase commitment and capacity access rights for advanced laser components, supporting a new U.S. fabrication facility. Restructuring charges declined to $2.4 million from $5.2 million a year earlier, signaling the wind-down of prior cost-reduction efforts.