Lumentum Q2 revenue, adj EPS beat estimates

Overview

• Optical tech firm's fiscal Q2 revenue grew 65.5% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company sees growth opportunities in optical circuit switches and co-packaged optics

Outlook

• Lumentum expects Q3 FY 2026 net revenue between $780 mln and $830 mln

• Company anticipates Q3 FY 2026 non-GAAP operating margin of 30% to 31%

• Lumentum forecasts Q3 FY 2026 non-GAAP EPS of $2.15 to $2.35

Result Drivers

• OPTICAL CIRCUIT SWITCHES - Rapid scaling to meet extraordinary customer demand, backlog exceeds $400 mln

• MARGIN EXPANSION - Non-GAAP operating margin expanded by over 1,700 basis points year-over-year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 5 "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 $370.00, about 12.6% below its February 2 closing price of $423.42

• The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 37 three months ago

Press Release: ID:nBwbs4Mra

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