Lumentum (LITE) investor relations material

Executive summary

• Q4 revenue reached $1.01 billion, up 109% year-over-year, marking the eighth consecutive quarter of top-line growth and driven by strong cloud and AI demand.

• Non-GAAP gross margin exceeded 50% and non-GAAP operating margin expanded by over 2,150 basis points year-over-year, both above guidance.

• Record shipments in 100G/200G EMLs, ultra-high-power lasers, and cloud transceivers, with initial 1.6T module production.

• Demand for AI and cloud-related products continues to accelerate, with significant supply-demand imbalances in high-powered lasers and EMLs.

• Q4 GAAP net loss was $7.2 billion due to a one-time, non-cash $7.8 billion loss on debt extinguishment.

Financial highlights

• Q4 non-GAAP revenue: $1.01 billion (up 109% YoY); non-GAAP EPS: $3.23; GAAP gross margin: 47.4%; non-GAAP gross margin: 50.4%.

• Q4 non-GAAP operating margin: 36.6% (up 440 bps sequentially, 2,160 bps YoY); GAAP operating margin: 27.8%.

• Non-GAAP net income: $326.3 million; Adjusted EBITDA: $406.4 million.

• Q4 GAAP net loss: $7.2 billion due to a one-time, non-cash charge from convertible debt equitization.

• Full year FY26 net revenue: $3.01 billion, up 83.2% YoY; full year non-GAAP net income: $782.3 million.

Outlook and guidance

• Q1 FY27 revenue guidance: $1.225–$1.275 billion (midpoint up 130% YoY, record quarterly revenue).

• Q1 non-GAAP operating margin guidance: 39.5%–40.5%; non-GAAP EPS: $4.05–$4.35.

• Operating margin at midpoint represents over 2,100 bps YoY expansion.