Lumentum Holdings (1LITE) Q4 2026 Earnings Report

The call highlighted substantial revenue acceleration, strong margin expansion, record shipments across multiple product lines, and accelerated adoption of 1.6T and new optical architectures (NPO/CPO/ELS). Management provided confident near-term guidance (Q1 midpoint $1.25B) and outlined capacity and supply actions (AXT deal, Greensboro ramp, CapEx). Key challenges were a large one-time GAAP charge from convertible note conversions (non-cash), continued supply constraints in certain products (notably ultra-high-power lasers and ongoing EML demand shortfall), and a cash decline tied to the conversion. Overall, positives (strong growth, margin leverage, product momentum, guidance beat) materially outweigh the negatives, though execution on supply ramp and capacity expansion remains critical.

Lumentum guided Q1 FY27 non‑GAAP revenue of $1.225–$1.275 billion (midpoint $1.25B, >130% YoY), non‑GAAP operating margin of 39.5%–40.5% and diluted non‑GAAP EPS of $4.05–$4.35 (assumes a 16.5% non‑GAAP tax rate and roughly 102M diluted shares). Management said the midpoint hits the $1.25B target more than one quarter early and that the Q1 operating margin exceeds the high end of the company’s target model at this revenue level; they expect roughly half of sequential growth to come from components and half from systems (1.6T transceivers and accelerating OCS deliveries) and continued gross‑margin expansion driven by mix and execution (Q4 non‑GAAP gross margin was 50.4%, Q4 revenue $1.01B, Q4 non‑GAAP operating margin 36.6%, Q4 non‑GAAP EPS $3.23).