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Earnings analysis · 10-K

LITE earnings analysis

Filed August 17, 2026 · Our reading of the company's report

The latest report

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…

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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.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $59 Operating expenses $24 Left as operating profit $17

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Components revenue was 42.1% Asia-Pacific revenue was 36.8% Systems revenue was 21.2%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$-92.96

What stood out

  • 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.

What to watch

  • 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.

Management's outlook

The 10-K does not provide annual numeric guidance; quarterly outlook was provided separately in the Q4 earnings press release and call.

Earlier filings 1

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 itself. Analysis can contain errors; check the source document for full context.