Lumentum Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Up

Lumentum LITE 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, CoreWeave CRWV and NVIDIA Corporation NVDA. 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.

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This article originally published on Zacks Investment Research (zacks.com).

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