Lumentum Holdings Q4 revenue beats on AI-driven optical demand

Lumentum Holdings

11/08/2026 21:11

Overview
U.S. optical tech provider's fiscal Q4 revenue rose 109% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q4 beat consensus
Company forecasts Q1 fiscal 2027 revenue of $1.225 bln to $1.275 bln

Outlook
Lumentum sees Q1 fiscal 2027 revenue of $1.225 bln to $1.275 bln
Company expects Q1 non-GAAP operating margin of 39.5% to 40.5%
Lumentum forecasts Q1 non-GAAP diluted EPS of $4.05 to $4.35

Result Drivers
AI-DRIVEN OPTICAL DEMAND - Co said increased AI compute workloads are driving data center architects to adopt optical links, boosting demand for its products
PRODUCT SEGMENT GROWTH - Co reported strong yr/yr revenue growth in both components and systems segments
NEW PRODUCT ADOPTION - Co cited growth drivers including OCS solutions, cloud module business with 1.6T adoption, and initial orders for ELS modules

Company press release: ID:nBw43pN51a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.01 bln
$987.89 mln (16 Analysts)
Q4 Adjusted EPS
Beat
$3.23
$2.97 (19 Analysts)
Q4 Loss Per Share
 
$84.65
 
Q4 Adjusted Net Income
Beat
$326.30 mln
$290.83 mln (16 Analysts)
Q4 Adjusted Gross Margin
 
50.40%
 
Q4 Adjusted Operating Margin
 
36.60%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Lumentum Holdings Inc. is $1,100.00, about 35.2% above its August 10 closing price of $813.51
The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 62 three months ago

Reuters Recommended Reads
Aug 10 - Israel's Camtek Q2 revenue beats on increased AI compute demand
Aug 10 - Ceva Q2 revenue beats analyst estimates on AI demand
Aug 10 - Lenders scrutinize US data center financing as community opposition builds

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)