LITE earnings analysis
What we found in LITE's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Lumentum delivered a significant fiscal 2026 operating inflection, with revenue rising to $3,014.0 million, gross margin reaching approximately 41.7%, operating margin turning positive at approximately 17.4%, and operating cash flow increasing to $751.4 million. Growth was concentrated in Components, Systems, Asia-Pacific and the Americas, consistent with the company’s positioning around cloud, AI/ML and data-center capacity expansion. The outlook remains bullish based on improving execution and capacity investment, but near-term convertible debt obligations, supplier and inventory commitments, and rising customer concentration materially increase downside risk.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Positioned for cloud and AI/ML demand
- Lumentum describes itself as a global leader in optical and photonic technologies and an industry-leading provider based on revenue and market share. Its products support cloud, AI/ML, data-center interconnect, telecommunications and industrial applications.
- Major revenue and margin inflection
- Revenue increased to $3,014.0 million in fiscal 2026 from $1,645.0 million in fiscal 2025 and $1,359.2 million in fiscal 2024. Gross margin expanded to approximately 41.7% from 28.0% in fiscal 2025 and 18.5% in fiscal 2024, while operating margin improved to approximately 17.4% from negative 10.9% and negative 31.9%, respectively.
- Broad product-based growth
- Both product categories grew materially: Components revenue rose to $2,005.6 million from $1,116.3 million, while Systems revenue rose to $1,008.4 million from $528.7 million. Components remained the larger category at 66.5% of fiscal 2026 revenue.
- Asia-Pacific and Americas drove growth
- Asia-Pacific remained the largest region at $1,752.2 million, up from $1,000.6 million in fiscal 2025; Americas revenue increased to $1,084.8 million from $480.9 million. Thailand revenue rose to $626.6 million from $291.8 million and Mexico increased to $443.7 million from $148.5 million.
- Cash generation improved sharply
- Operating cash flow reached $751.4 million, compared with $126.3 million in fiscal 2025 and $24.7 million in fiscal 2024. Cash and cash equivalents increased by $1,522.8 million to $2,043.5 million, although the increase was supported by $1,556.9 million of financing cash flow.
- Capacity expansion funded
- The company invested $451.3 million in capital expenditures, up from $231.0 million in fiscal 2025, and acquired a Greensboro, North Carolina manufacturing facility for $38.0 million to expand capacity. It also raised $2.0 billion through Series A Convertible Preferred Stock issued to NVIDIA and issued $1,265.0 million of 2032 convertible notes.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Near-term convertible debt exposure
- Convertible notes totaling $1,554.3 million of principal were classified as current because all outstanding notes remained convertible in the first quarter of fiscal 2027. Contractual obligations include $54.8 million of 2026 Notes due in fiscal 2027, and the company had received early conversion requests totaling $757.8 million as of August 14, 2026.
- Supply and inventory execution risk
- Liquidity is committed against $2,354.4 million of purchase obligations, including $2,112.5 million due within one year, while inventory increased to $691.6 million from $470.1 million. The company relies on limited suppliers and contract manufacturers; a demand shortfall could result in excess inventory, write-downs, cancellation charges or delayed shipments.
- Customer concentration and trade exposure
- Customer and trade concentration increased: one customer represented 30.4% of gross accounts receivable at June 27, 2026 versus 13.2% the prior year, and two customers represented 26.6% and 15.0% of fiscal 2026 revenue. The company also states that tariffs and trade restrictions could have a material future impact, although no material impact was recorded in fiscal 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-92.96
- Gross margin
- 41.7%
- Operating margin
- 17.4%
- Segment
- Single reportable segment after the fiscal 2026 reorganization.
- Segment
- Components revenue was $2,005.6 million, or 66.5% of total revenue, versus $1,116.3 million, or 67.9%, in fiscal 2025.
- Segment
- Systems revenue was $1,008.4 million, or 33.5% of total revenue, versus $528.7 million, or 32.1%, in fiscal 2025.
- Segment
- Asia-Pacific revenue was $1,752.2 million, or 58.2% of total revenue; Americas revenue was $1,084.8 million, or 35.9%; EMEA revenue was $177.0 million, or 5.9%.
What they said about what is next.
The 10-K does not provide annual numeric guidance; quarterly outlook was provided separately in the Q4 earnings press release and call.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- Lumentum Holdings reported an impressive Q3 2026 with revenues of $808.4 million, showing a 90.1% increase year-over-year. Despite a slight miss on revenue expectations, EPS of $2.37 surpassed estimates of $2.17, aided…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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