Want to see LITE full AI Analyst Report?
Lumentum Holdings (LITE) AI Stock Analysis
Top Page
Lumentum Holdings
(NASDAQ:LITE)
The score is driven primarily by strong technical momentum and an upbeat earnings call with robust forward guidance and expanding non-GAAP margins. Financials are mixed—improving revenue, cash flow, and leverage are positives, but the extremely large GAAP loss and earnings volatility materially increase uncertainty. Valuation is constrained by a negative P/E and no stated dividend yield.
Lumentum Holdings Key Performance Indicators (KPIs)
Revenue by SegmentHow sales split across Lumentum’s product lines and end markets, showing which businesses drive growth, profit margins, and sensitivity to demand cycles. Segment mix reveals whether the company depends more on telecom and data‑center optics, which can be cyclical, or on commercial lasers and sensing, which may offer different growth and margin profiles — changes in the mix can signal margin pressure or faster expansion opportunities.
Components have become the primary growth engine after a prolonged recovery, benefiting from surging laser/chip shipments and partial insourcing that raises content per module; Systems are accelerating too—driven by high‑speed transceivers and early OCS ramps—but remain a smaller, supply‑constrained lever. Management’s record revenue guidance and margin expansion reflect improving mix and pricing, yet multi‑product component shortages and delayed Greensboro capacity mean upside depends on LTAs, contract manufacturing and capex execution, keeping near‑term revenue upside capped despite strong demand.
The FlyLumentum Holdings (LITE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $76.15B
- Dividend Yield
- ―
- Average Volume (3M)
- 4.91M
- Price to Earnings (P/E)
- -9.0
- Beta (1Y)
- 2.24
- Revenue Growth
- 83.22%
- EPS Growth
- -24212.72%
- Country
- US
- Employees
- 13,757
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Communication Equipment
Lumentum Holdings Business Overview & Revenue Model
Company Description
Lumentum Holdings Inc., established in 2015 and headquartered in San Jose, California, is a global leader in optical and photonic product manufacturing. The company's reach extends across the Americas, Asia-Pacific, Europe, the Middle East, and Afric...
How the Company Makes Money
Lumentum makes money primarily by selling photonics products (components, modules, and subsystems) to other businesses, with revenue recognized from product shipments under customer purchase orders and supply agreements. A major revenue stream comes...
Lumentum Holdings Earnings Call Summary
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.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
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).
Lumentum Holdings Financial Statement Overview
Summary
Revenue rebounded strongly in 2026 and gross margin improved materially, while the balance sheet de-levered significantly (debt down and equity up). Cash flow also swung to strong positive in 2026. Offsetting these positives, reported profitability is highly unstable, with an exceptionally large 2026 net loss and weak returns, raising uncertainty around normalized earnings quality.
Income Statement
34NegativeBalance Sheet
62PositiveCash Flow
57Neutral| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.01B | 3.01B | 1.65B | 1.36B | 1.77B | 1.71B |
| Gross Profit | 1.26B | 1.26B | 459.90M | 251.50M | 569.00M | 788.60M |
| EBITDA | -6.88B | -6.88B | 106.80M | -81.60M | 188.70M | 482.40M |
| Net Income | -6.94B | -6.94B | 25.90M | -546.50M | -131.60M | 198.90M |
Balance Sheet | ||||||
| Total Assets | 7.31B | 7.31B | 4.22B | 3.93B | 4.63B | 4.16B |
| Cash, Cash Equivalents and Short-Term Investments | 2.74B | 2.74B | 877.10M | 887.00M | 2.01B | 2.55B |
| Total Debt | 1.67B | 1.67B | 2.61B | 2.56B | 2.87B | 1.94B |
| Total Liabilities | 2.66B | 2.66B | 3.08B | 2.97B | 3.28B | 2.29B |
| Stockholders Equity | 4.64B | 4.64B | 1.13B | 957.30M | 1.36B | 1.88B |
Cash Flow | ||||||
| Free Cash Flow | 550.50M | 300.10M | -104.70M | -111.30M | 51.30M | 368.10M |
| Operating Cash Flow | 751.40M | 751.40M | 126.30M | 24.70M | 179.80M | 459.30M |
| Investing Cash Flow | -785.50M | -785.50M | -84.10M | -114.30M | -874.00M | -226.30M |
| Financing Cash Flow | 1.56B | 1.56B | 41.80M | -332.70M | 263.00M | 282.90M |
Lumentum Holdings Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LITE, the sentiment is Negative. The current price of 840.70 is below the 20-day moving average (MA) of 921.82, below the 50-day MA of 922.90, and above the 200-day MA of 801.17, indicating a neutral trend. The MACD of -27.16 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 71.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LITE.
Lumentum Holdings Risk Analysis
Lumentum Holdings disclosed 45 risk factors in its most recent earnings report. Lumentum Holdings reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksLumentum Holdings Peers Comparison
Overall Rating
CIEN75Outperform- LITE71Outperform
VIAV68Neutral
CSCO67Neutral
NOK55Neutral
AAOI53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CIEN | 75Outperform | $45.48B | 69.42 | 22.82% | ― | 32.57% | 367.53% |
| LITE | 71Outperform | $76.15B | -9.04 | -300.07% | ― | 83.22% | -24212.72% |
| VIAV | 68Neutral | $7.36B | -233.02 | -3.16% | ― | 40.03% | -193.79% |
| CSCO | 67Neutral | $411.45B | 31.10 | 27.39% | 1.60% | 11.77% | 27.65% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| NOK | 55Neutral | $49.12B | 55.57 | 3.65% | 1.90% | 9.69% | -8.89% |
| AAOI | 53Neutral | $5.86B | -88.66 | -5.61% | ― | 61.85% | 76.82% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LITE | Lumentum Holdings Inc | 840.70 | 641.12 | 321.23% | |
| CIEN | Ciena Corporation | 320.72 | 131.16 | 69.19% | |
| CSCO | Cisco | 104.51 | 31.41 | 42.98% | |
| NOK | Nokia | 8.56 | 1.51 | 21.37% | |
| AAOI | Applied Optoelectronics Inc | 69.05 | 36.01 | 108.99% | |
| VIAV | Viavi Solutions Inc | 29.92 | 12.38 | 70.58% |
Lumentum Holdings Corporate Events
Lumentum announces upcoming leadership transition in quality unit
NeutralOn July 27, 2026, Lumentum Holdings Inc. disclosed that Vincent Retort, Executive Vice President, Global Reliability & Quality, plans to retire from the company effective October 2026. The announcement marks a leadership transition in a function...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 18, 2026