Lumentum Sets Second-Quarter Revenue Outlook

The Tip Desk · November 2, 2026 · 3 min read

The optical-technology company guided fiscal second-quarter revenue to $1.575 billion to $1.625 billion after first-quarter sales of $1.26 billion.

Lumentum Holdings (LITE) guided fiscal second-quarter revenue to $1.575 billion to $1.625 billion, well above the $1.225 billion to $1.275 billion range it had set for the first quarter, and said non-GAAP operating margin should reach 45.0% to 46.0%.

The optical and photonic technology company reported net revenue of $1.26 billion for the fiscal first quarter ended September 26, 2026, up 25.5% from $1.01 billion in the prior quarter. Sequential growth had been 21.5% in the preceding quarter. Year over year, revenue rose 136.5% from $533.8 million.

President and CEO Michael Hurlston said the company built on momentum across all businesses, with pump lasers and optical circuit switches as the leading contributors. He said Lumentum secured a second major NPO/CPO win backed by purchase commitments exceeding $5 billion, and that optical circuit switch demand visibility had expanded, positioning optical switching to become a multi-billion-dollar annual revenue stream. He also said the cloud modules business was showing improvement on the gross margin line.

Systems revenue grew faster than components. Systems reached $508.4 million, or 40.3% of net revenue, up 42.4% sequentially. Components were $754.2 million, or 59.7% of net revenue, up 16.1%.

GAAP gross margin expanded 360 basis points sequentially to 51.0%, after a 320 basis point sequential expansion in the prior quarter. Non-GAAP gross margin expanded 280 basis points sequentially to 53.2%. GAAP operating margin expanded 70 basis points sequentially to 28.5%, after a 620 basis point sequential expansion in the prior quarter. Non-GAAP operating margin expanded 570 basis points sequentially to 42.3%.

GAAP net income was $360.3 million, or $3.54 a share. The prior quarter had a GAAP net loss of $7.2 billion, or $84.65 a share, driven by a one-time, non-cash loss on debt extinguishment of $7.8 billion from the equitization of certain convertible notes.

Non-GAAP net income was $461.1 million, or $4.57 a share, compared with $326.3 million, or $3.23 a share, in the prior quarter. Adjusted EBITDA increased to $578.0 million from $406.4 million.

The company recorded a $6.9 million gain on the sale of a product line for $12.3 million of proceeds. Research and development expense was $191.8 million. Selling, general and administrative expense was $99.3 million.

Cash, cash equivalents, and short-term investments were $2.0 billion at quarter-end, down $758.8 million from the end of the fourth quarter of fiscal 2026. Current portion of long-term debt was $1.36 billion.

Hurlston said the company anticipates adding approximately $350 million in sequential growth in the second quarter, a figure greater than the quarterly revenue of the whole company just two years ago, and that second-quarter operating margin is projected to exceed 45 percent. Lumentum also guided non-GAAP diluted earnings of $5.90 to $6.20 a share for the second quarter.