Lumentum (NASDAQ:LITE) Posts Earnings Results, Beats Expectations By $0.26 EPS

Lumentum (NASDAQ:LITE) announced its quarterly earnings data on Tuesday. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26, FiscalAI reports. Lumentum had a net margin of 6.11% and a return on equity of 4.62%. The business had revenue of $665.50 million for the quarter, compared to analysts’ expectations of $646.74 million. During the same period last year, the firm posted $0.42 earnings per share. The firm’s quarterly revenue was up 65.5% compared to the same quarter last year. Lumentum updated its Q3 2026 guidance to 2.150-2.350 EPS.

Here are the key takeaways from Lumentum’s conference call:

• Lumentum reported a strong beat in Q2 with $665.5 million revenue (65% YoY) and non-GAAP operating margin of 25.2%, and guided Q3 to a record midpoint of $805 million (≈85%+ YoY) and non-GAAP EPS $2.15–$2.35.
• Optical circuit switch (OCS) demand accelerated materially—backlog surged to well north of $400 million, most slated for shipment in H2 calendar 2026, and the business cleared its first $10M quarter ahead of plan.
• Cloud transceivers and CPO are gaining momentum—transceiver execution/1.6T design wins improved (Q2 transceivers up ≈$50M sequential), and Lumentum won an additional multi‑hundred‑million PO for ultra‑high‑power lasers with shipments expected in H1 2027; expansion into pluggable ELS modules and planned scale‑up CPO shipments (~late 2027) could materially enlarge TAM.
• Indium phosphide capacity is tight but expanding—management front‑loaded a meaningful portion of a targeted ~40% expansion, has LTAs covering much of supply through 2027, yet still reports a ~25–30% supply shortfall versus customer demand.
• Manufacturing and backend capacity are constrained—inventory rose to support growth, CapEx was $84M this quarter, and the company is increasingly turning to contract manufacturers and facility reconfigurations to meet demand, introducing execution and scaling risks.

Lumentum Trading Up 2.8%

LITE opened at $435.10 on Wednesday. The company has a debt-to-equity ratio of 2.77, a current ratio of 1.37 and a quick ratio of 1.02. Lumentum has a fifty-two week low of $45.65 and a fifty-two week high of $464.00. The company’s 50 day moving average price is $356.09 and its two-hundred day moving average price is $230.90. The firm has a market capitalization of $30.85 billion, a price-to-earnings ratio of 292.02 and a beta of 1.51.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Q2 results beat expectations — Lumentum reported $1.67 EPS vs. Zacks/consensus ~ $1.40–$1.41 and revenue of $665.5M (up ~65.5% YoY), signalling solid top-line and profit recovery. Read More.
• Positive Sentiment: Very strong forward guidance — Lumentum raised Q3 FY2026 guidance to $2.15–$2.35 EPS and revenue $780M–$830M, well above sell-side consensus, which is the primary driver of the rally (big beat on both EPS and revenue outlook). Read More.
• Positive Sentiment: Margin expansion and CEO commentary — Management highlighted >1,700 bps non‑GAAP operating margin improvement and said revenue hit the high end of guidance, supporting sustainability of the profit improvement. Read More.
• Positive Sentiment: Analyst / market momentum — Pre-earnings price-target upgrades and coverage notes amplified buying into the print, contributing to the multi-day rally. Read More. and Read More.
• Neutral Sentiment: Investor materials available — Conference call, slide deck and replay were posted for deeper review; useful for confirming forward assumptions and product/program cadence. Read More. • Read More.
• Negative Sentiment: Valuation and leverage remain watch points — Lumentum’s trailing P/E is elevated and the company carries leverage (debt-to-equity ~2.8), which could amplify downside if growth slows or guidance slips. Read More.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on LITE shares. Wolfe Research reissued an “outperform” rating and set a $240.00 price target on shares of Lumentum in a report on Wednesday, November 5th. Morgan Stanley lifted their target price on Lumentum to $350.00 and gave the company an “equal weight” rating in a research report on Friday, January 30th. Barclays boosted their target price on Lumentum from $181.00 to $365.00 and gave the stock an “equal weight” rating in a research note on Thursday, January 15th. Wall Street Zen downgraded shares of Lumentum from a “buy” rating to a “hold” rating in a research note on Saturday, November 1st. Finally, Zacks Research raised shares of Lumentum from a “hold” rating to a “strong-buy” rating in a report on Tuesday, December 2nd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $288.06.

Insider Activity at Lumentum

In other Lumentum news, CAO Matthew Joseph Sepe sold 4,232 shares of Lumentum stock in a transaction dated Friday, November 7th. The stock was sold at an average price of $239.63, for a total transaction of $1,014,114.16. Following the transaction, the chief accounting officer directly owned 43,544 shares of the company’s stock, valued at approximately $10,434,448.72. The trade was a 8.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Jae Kim sold 1,367 shares of the stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $234.14, for a total value of $320,069.38. Following the completion of the sale, the senior vice president directly owned 38,570 shares of the company’s stock, valued at approximately $9,030,779.80. The trade was a 3.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,612 shares of company stock valued at $7,317,398 in the last quarter. Insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

Large investors have recently bought and sold shares of the business. CIBC Private Wealth Group LLC grew its stake in Lumentum by 97.5% during the third quarter. CIBC Private Wealth Group LLC now owns 1,918 shares of the technology company’s stock worth $312,000 after purchasing an additional 947 shares during the period. CIBC Bancorp USA Inc. bought a new stake in shares of Lumentum in the 3rd quarter valued at $377,000. Danske Bank A S acquired a new position in shares of Lumentum during the 3rd quarter valued at $33,000. Oberweis Asset Management Inc. boosted its stake in Lumentum by 22.1% during the third quarter. Oberweis Asset Management Inc. now owns 328,630 shares of the technology company’s stock worth $53,471,000 after acquiring an additional 59,580 shares in the last quarter. Finally, Castleark Management LLC grew its holdings in Lumentum by 3.9% in the third quarter. Castleark Management LLC now owns 65,823 shares of the technology company’s stock worth $10,710,000 after purchasing an additional 2,453 shares during the period. 94.05% of the stock is currently owned by institutional investors and hedge funds.

About Lumentum

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.