Lumentum delivered a record quarter and guided significantly higher, driven by massive demand for optical components in AI. The company is sold out of key products and has line of sight to significant growth in OCS, CPO, and scale-up opticals. Record revenue of $665.5M, with strong gross and operating margin expansion.
Lumentum delivered a record quarter and guided significantly higher, driven by massive demand for optical components in AI. The company is sold out of key products and has line of sight to significant growth in OCS, CPO, and scale-up opticals. Record revenue of $665.5M, with strong gross and operating margin expansion.
Management conveys strong confidence, citing record revenues, accelerating demand, and a significant order backlog, with a clear view toward future growth drivers.
Management emphasizes Lumentum's role as a foundational engine of the AI revolution, with strong demand across cloud transceivers, optical circuit switches (OCS), and co-packaged optics (CPO), including a new multi-hundred million dollar purchase order for ultra-high power…
Management is proactively investing in capacity, having front-loaded a 40% expansion target for indium phosphide wafers and exploring new fab capacity. They are in active negotiations with customers to offset capital requirements in exchange for long-term supply assurances, and…
Guidance · revenue to $0.805B
Management emphasizes Lumentum's role as a foundational engine of the AI revolution, with strong demand across cloud transceivers, optical circuit switches (OCS), and co-packaged optics (CPO), including a new multi-hundred million dollar purchase order for ultra-high power lasers and early progress in optical scale-up architecture.
OCS backlog surges past $400 million, shipments in H2 calendar year. Management conveys strong confidence, citing record revenues, accelerating demand, and a significant order backlog, with a clear view toward future growth drivers.
Management is proactively investing in capacity, having front-loaded a 40% expansion target for indium phosphide wafers and exploring new fab capacity. They are in active negotiations with customers to offset capital requirements in exchange for long-term supply assurances, and plan to leverage contract manufacturers to accelerate ramps.
Management conveys strong confidence, citing record revenues, accelerating demand, and a significant order backlog, with a clear view toward future growth drivers.
“Our order backlog now has surged well past $400 million, the majority of which is slated for shipment in the second half of this calendar year.”
“we expanded our footprint in next generation architectures, shipping CW lasers for 800 gig manufacturers and increased volumes of ultra-high powered laser shipments for CPO applications.”
“Even as we add capacity, it seems that the demand supply imbalance increases. We talked about that last quarter, and I'd say again, even as we've added this 20% additional capacity, the demand-supply imbalance has increased.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 Q3 | $2.15–$2.35 | $2.25 | GUIDED |
| Op margin | FY2026 Q3 | 30%–31% | 30.5% | GUIDED |
| Revenue | FY2026 Q3 | $0.78B–$0.83B | $0.805B | GUIDED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2026 Q3 | EPS | FY2026 Q4 | $2.85–$3.05 | $3.23 | Met / beat |
| FY2026 Q3 | Op margin | FY2026 Q4 | 35%–36% | 27.76% | Missed |