Lumentum Q4 revenue beats estimates on AI demand

Overview

• Lumentum Holdings Inc fiscal Q4 rev of $480.7 mln beats analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q4 exceeds analyst estimates, per LSEG data

• Strong demand for AI data center products drives Q4 performance of the maker of optical and photonics products

Outlook

• Company expects Q1 FY2026 revenue between $510 mln and $540 mln

• Lumentum anticipates non-GAAP EPS of $0.95 to $1.10 in Q1 FY2026

• Company forecasts non-GAAP operating margin of 16% to 17.5% for Q1 FY2026

• Lumentum aims to exceed $600 mln in quarterly revenue by June 2026

Result Drivers

• AI DATA CENTER DEMAND - Robust demand for cloud products supporting AI data centers drove Q4 revenue, per CEO Michael Hurlston

• COMPONENT STRENGTH - Strong performance in EML chips, pump lasers, and narrow linewidth laser assemblies contributed to revenue growth

• 800G MODULES - High demand for 800G modules supported Q4 revenue above revised guidance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and 1 "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 $102.50, about 12.2% below its August 11 closing price of $115.03

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw89Ynyra