Lumentum stock: Q1 revenue surges 136.5%, Q2 outlook rises

Lumentum reported a sharp expansion in its fiscal first quarter on November 2, with management pointing to pump lasers and optical circuit switches as the main growth drivers. The company also raised expectations for the next quarter, strengthening the earnings case while investors continue to weigh the proposed Marvell combination.

According to the Lumentum investor release, revenue for the three months ended September 26, 2026, rose 136.5 percent year over year to USD 1.2626 billion. Revenue was up 25.5 percent from the fourth quarter of fiscal 2026, when the company generated USD 1.0063 billion.

Growth Reaches Both Segments

Components revenue increased 98.9 percent from the year-earlier quarter to USD 754.2 million, helped by pump lasers. Systems revenue climbed 228.8 percent to USD 508.4 million, with optical circuit switches, or OCS, leading the advance. Components represented 59.7 percent of total revenue and Systems 40.3 percent.

Profitability also improved markedly. GAAP gross margin reached 51.0 percent, compared with 34.0 percent a year earlier, while GAAP operating margin rose to 28.5 percent from 1.3 percent. On a non-GAAP basis, gross margin was 53.2 percent and operating margin was 42.3 percent, compared with 39.4 percent and 18.7 percent, respectively, in the prior-year period.

GAAP net income was USD 360.3 million, or USD 3.54 per diluted share, versus USD 4.2 million, or USD 0.05 per share, a year earlier. Non-GAAP net income reached USD 461.1 million, or USD 4.57 per diluted share, compared with USD 86.4 million, or USD 1.10 per share. The adjusted figures exclude items including stock-based compensation, amortization of acquired intangibles and foreign-exchange effects.

Management Raises The Bar

President and CEO Michael Hurlston said the company secured its second major NPO/CPO win during the quarter, backed by purchase commitments exceeding USD 5 billion. He added that OCS demand visibility had expanded and could support a multi-billion-dollar annual optical-switching business. Lumentum also said its cloud modules business was gaining strength and improving on the gross-margin line.

For fiscal second-quarter 2027, Lumentum expects revenue of USD 1.575 billion to USD 1.625 billion. The company forecasts a non-GAAP operating margin of 45.0 percent to 46.0 percent and non-GAAP diluted earnings per share of USD 5.90 to USD 6.20. Management said sequential growth should be approximately USD 350 million and that operating margin should exceed 45 percent.

The outlook leaves execution, product mix and manufacturing capacity as key issues for investors. Lumentum itself highlighted the risk that quarter-to-quarter mix changes, customer demand, supplier capacity, tariffs and export controls could affect revenue and margins. Cash, cash equivalents and short-term investments totaled USD 2.0 billion at the end of the quarter, down USD 758.8 million from the prior quarter.

Share Price Tracks Market Uncertainty

Lumentum stock traded at 532.65 euros on Lang & Schwarz at 14:07 CET on Thursday, November 5, 2026, 1.85 percent below the Xetra close of 542.70 euros on Wednesday, November 4. Investors can follow the real-time quote of Lumentum stock.

The S&P 500 remains the relevant market backdrop for the US-listed company.

More earnings developments and company news are available in More news and analyses on Lumentum stock.