LITE Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise

Lumentum LITE reported second-quarter fiscal 2026 non-GAAP earnings of $1.67 per share, which beat the Zacks Consensus Estimate by 18.68%. The company reported non-GAAP earnings of 42 cents in the year-ago quarter.

Non-GAAP revenues of $665.5 million, which beat the consensus mark by 1.85%, increased 24.7% on a sequential basis and 65.5% on a year-over-year basis. The growth showcases the strength of the company’s plans for both optical components and systems. 

Product-wise, revenues from the Components segment contributed 66.7% to total revenues in the fiscal second quarter. The figure increased 68.3% year over year to $443.7 million. System revenues contributed 33.3% to total revenues. The figure increased 60.1% year over year to $221.8 million.

The share price of LITE was up by 2.76% at the time of writing this article.

LITE Q2 Details

The non-GAAP gross margin was 42.5% compared with 32.3% in the year-ago quarter.

Selling, general and administrative expenses, as a percentage of revenues, decreased 220 bps from the year-ago quarter’s level to 6.8%.

Research and development expenses, as a percentage of revenues, decreased 500 bps to 10.5%.

Lumentum reported a non-GAAP operating margin of 25.2% compared with 7.9% in the year-ago quarter.

Balance Sheet

As of Dec. 27, 2025, cash and cash equivalents (including short-term investments) were $1.15 billion compared with $1.12 billion as of Sept. 27, 2025.

LITE Q3 2026 Guidance

For third-quarter fiscal 2026, LITE expects non-GAAP revenues between $780 million and $830 million. The company expects non-GAAP operating margin in the range of 30% to 31% and non-GAAP diluted earnings between $2.15 and $2.35 per share, with diluted shares in the range of 92 million.

Zacks Rank & Other Stocks to Consider

Lumentum currently sports a Zacks Rank #1 (Strong Buy).

Ciena CIEN, Microchip Technology MCHP, and MKS MKSI are some other better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Each stock presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Ciena have gained 216% in the past 12-month period. CIEN is likely to report its first-quarter fiscal 2026 results on March 10, 2026.

Shares of Microchip Technology have gained 45.8% in the past 12-month period. MCHP is likely to report its third-quarter fiscal 2026 results on Feb. 5, 2026.

Shares of MKS have gained 105.2% in the past 12-month period. MKSI is likely to report its fourth-quarter 2025 results on Feb. 17, 2026.   

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research