UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 27, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36861 Lumentum Holdings Inc. (Exact name of Registrant as specified in its charter) Delaware 47-3108385 (State or other juri ...

Financial Data and Key Metrics Changes - Lumentum reported a record quarterly revenue of $665.5 million, representing over 65% year-over-year growth and a non-GAAP operating margin increase of more than 1,700 basis points [5][17] - Non-GAAP gross margin for Q2 was 42.5%, up 310 basis points sequentially and 1,020 basis points year-on-year, driven by better manufacturing utilization and increased pricing [17][18] - Non-GAAP operating margin reached 25.2%, up 650 basis points sequentially and 1,730 basis points year-on-year, primarily due to revenue growth in components products [18] Business Line Data and Key Metrics Changes - Components revenue was $443.7 million, a 17% sequential increase and 68% year-over-year growth, driven by demand for laser chips and assemblies [21][11] - Systems revenue reached $221.8 million, reflecting a 43% sequential increase and 60% year-over-year growth, with cloud transceivers being the main contributor [21][14] - The optical circuit switches (OCS) business exceeded expectations, with a backlog exceeding $400 million, primarily to be shipped in the second half of the calendar year [7][27] Market Data and Key Metrics Changes - The demand for cloud transceivers and optical circuit switches is accelerating, with significant contributions expected from these segments in the upcoming quarters [6][16] - The company is experiencing a demand-supply imbalance, with a gap of approximately 25%-30% in EML products, indicating strong market demand [75] - The transition to 1.6T speeds is being driven primarily by EMLs, with silicon photonics expected to dominate future shipments [50][51] Company Strategy and Development Direction - Lumentum aims to capitalize on the AI revolution, positioning itself as a foundational technology provider for AI networks [5] - The company is focusing on expanding its capacity and improving manufacturing efficiency to meet growing demand, particularly in cloud applications [10][21] - Lumentum is exploring new market opportunities, including pluggable external light source modules, which could significantly increase its addressable market [9][83] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in surpassing previous revenue projections, with Q3 guidance indicating a midpoint of $805 million, representing an 85%+ year-over-year increase [5][22] - The company anticipates continued growth in its components portfolio, driven by cloud applications, while also addressing cyclical softness in the industrial market [15][16] - Management highlighted the importance of long-term agreements with customers, which provide pricing flexibility and stability in supply [76][78] Other Important Information - The company is actively negotiating with customers to offset capital requirements in exchange for long-term supply assurances, indicating the critical nature of its technology [10] - Lumentum's cash and short-term investments increased by $33 million to $1.16 billion, with inventory levels rising to support expected growth [21] Q&A Session Summary Question: Insights on the OCS market and price increases impact - Management noted that the OCS market is developing better than expected, with a backlog exceeding $400 million and significant demand from multiple customers [27][28] - Price increases are positively impacting both top line and gross margin, with modest overall revenue impact expected [29][30] Question: Indium phosphide capacity ramp and future capacity plans - Management confirmed that capacity increases are ahead of schedule, with expectations for better than previously outlined growth [35][36] - Discussions about new fabs are ongoing, indicating a proactive approach to expanding capacity [42] Question: Transceiver market dynamics and pricing - Demand for transceiver products is strong, with expectations for growth beyond initial projections, driven by multiple customers [39][40] - Management indicated that pricing discussions are ongoing, with opportunities for incremental pricing based on demand [78] Question: CPO opportunity and market share - Management expressed confidence in the CPO market, highlighting a significant order and the potential for increased market share [61][64] - The introduction of external light source modules is expected to enhance revenue potential significantly [83]

Q2 FY26 Conference Call February 3, 2026 ▪ Systems Forward Looking Statements and Financial Presentation This presentation and our earnings call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These include statements regarding: our revenue, profitability, revenue growth and momentum, growth catalysts and drivers, the sustainability of our growth, the potential for our products, our ability to scale co ...

NEWS RELEASE LUMENTUM ANNOUNCES SECOND QUARTER OF FISCAL YEAR 2026 FINANCIAL RESULTS San Jose, Calif., February 3, 2026 – Lumentum Holdings Inc. ("Lumentum" or the "Company") today reported results for its fiscal second quarter ended December 27, 2025. "Lumentum delivered a standout second quarter, with over 65 percent year-over-year revenue growth and non-GAAP operating margin expansion above 1,700 basis points," said President and CEO Michael Hurlston. "Revenue hit the high end of our guidance range, whil ...

Group 1 - Lumentum Holdings Inc. (NASDAQ:LITE) experienced a significant rally, increasing by 8.06% to close at $423.42 as investors anticipated its earnings report [1] - The company projected net revenues between $630 million and $670 million, with diluted earnings per share expected to be between $1.30 and $1.50 for the second quarter ending December 31 [2] - Morgan Stanley upgraded Lumentum's price target by 15% to $350 from $304, while maintaining an "equal weight" rating [2] Group 2 - Citigroup raised its price target for Lumentum by 87% to $450 from $240, while keeping a "buy" recommendation [4] - Stifel issued a new price target of $400, doubling its previous target of $200, and reaffirmed a "buy" rating based on expectations of increased networking intensity from AI advancements [5] - The overall sentiment indicates a strong belief in Lumentum's potential, although some analysts suggest that other AI stocks may offer higher returns with lower risk [6]

Core Thesis - Lumentum Holdings Inc. is positioned as a leader in AI infrastructure, having transitioned from a consumer-electronics supplier to a vertically integrated provider in cloud networking and data center interconnects, with a current share price of $381.44 [1][2] Company Overview - Lumentum manufactures and sells optical and photonic products globally, with significant operations in the Americas, Asia-Pacific, Europe, the Middle East, and Africa [2] - The company has experienced a V-shaped recovery after a 23% revenue contraction in FY2024, driven by increased demand for high-speed optical transceivers, particularly 800G and 1.6T modules for hyperscale cloud providers [2] Strategic Growth - Strategic acquisitions, such as NeoPhotonics and Cloud Light, have enhanced Lumentum's value chain, allowing it to sell complete transceiver modules directly to major hyperscalers, thus capturing high-margin revenue [3] - The Cloud & Networking segment now constitutes approximately 88% of total revenue, with Indium Phosphide-based EMLs serving as a key differentiator [3] Financial Performance - In Q1 FY2026, Lumentum reported a 58% year-over-year revenue increase to $533.8 million, with non-GAAP operating margins expanding to 18.7%, indicating strong operational efficiency [3] Valuation Insights - Despite trading at a premium, with an intrinsic value estimated at $126 per share, Lumentum's strong growth prospects in AI infrastructure present a compelling investment opportunity [4] - The company is well-positioned for long-term growth, particularly for investors willing to manage near-term volatility and convertible debt considerations [4]

In the current session, the stock is trading at $431.90, after a 10.22% spike. Over the past month, Lumentum Holdings Inc. (NASDAQ:LITE) stock increased by 8.68%, and in the past year, by 400.29%. With performance like this, long-term shareholders are optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.How Does Lumentum Holdings P/E Compare to Other Companies?The P/E ratio measures the current share price to the company's EPS. It is used by ...

Core Insights - Lumentum Holdings Inc. is set to release its quarterly earnings on February 3, 2026, with analysts expecting an EPS of $1.40 and revenue of approximately $646.7 million [1][6] - The company is experiencing significant growth driven by increased demand for AI and cloud technologies, projecting revenues between $630 million and $670 million and non-GAAP EPS ranging from $1.30 to $1.50 [2][6] - Over 60% of Lumentum's revenue comes from AI and cloud demand, primarily from hyperscaler customers, with a Zacks Consensus Estimate for revenues at $652.4 million, reflecting a 62.2% increase from the previous year [3] Revenue and Growth Projections - Lumentum's optics business is thriving due to the adoption of AI technologies, with expectations to surpass its revenue guidance of $650 million sooner than anticipated [4] - The company's components for cloud and data center applications are crucial for data center operations, contributing to half of the expected growth in the second quarter [3][4] Market Impact - The upcoming earnings report could significantly impact Lumentum's stock price, with potential for a rise if expectations are exceeded, or a decline if results fall short [5]

Core Insights - Lumentum Holdings Inc. (NASDAQ:LITE) experienced a significant share price increase of 15.52% week-on-week, driven by investor enthusiasm ahead of its earnings report and a price target upgrade from Morgan Stanley [1][3]. Financial Performance - The company is set to announce its financial and operational highlights for Q2 2026 on February 3, 2026, after market close, followed by a conference call to discuss the results [2]. Analyst Ratings and Market Sentiment - Morgan Stanley raised its price target for Lumentum Holdings to $350 from $304, while maintaining an "equal weight" rating on the stock [3]. - The stock has appreciated approximately 100% since the FQ1 results in early November, making it a top choice for incremental investors as the year closed [4]. - Despite the positive sentiment, Morgan Stanley noted that investors are becoming more neutral ahead of the upcoming results due to concerns about the sustainability of high expectations, particularly as the company may remain "capacity constrained" in several categories [5].

Core Viewpoint - Morgan Stanley has raised the price target for Lumentum (LITE) to $350 from $304 while maintaining an Equal Weight rating on the shares [1] Group 1: Financial Performance - The biggest unknowns for fiscal Q2 EPS are primarily related to margins [1] - Demand conditions for Lumentum remain strong [1] - The company is largely capacity constrained [1]