Lumentum (LITE) Q4 2026 earnings summary

Executive summary

• Q4 revenue reached $1.01 billion, up 109% year-over-year and 24.5% sequentially, marking the eighth consecutive quarter of top-line growth and third consecutive quarter of over 20% sequential growth.

• Non-GAAP operating margin expanded by over 2,150 basis points year-over-year, with EPS and operating margin above the high end of guidance.

• Record shipments in 100G, 200G EML components, and 800G cloud transceivers, with initial production and shipments of 1.6T modules.

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

• Demand for AI and cloud-related products continues to accelerate, with visibility into further growth in both components and systems portfolios.

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%; GAAP operating margin: 27.8%; non-GAAP operating margin: 36.6%.

• Q4 non-GAAP net income: $326.3 million; Adjusted EBITDA: $406.4 million.

• Full year FY26 net revenue: $3.01 billion (up 83.2% YoY); non-GAAP net income: $782.3 million; non-GAAP EPS: $8.67.

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

Outlook and guidance

• Q1 FY27 non-GAAP 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.