Lumentum (LITE)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
$881.26+4.00%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
QuarterlyIQ Insights · LITE
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks LITE against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6360).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 50% of the last 8 guided quarters · 31.9% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on expanding revenue through AI compute workloads, cloud data center growth, and optical solutions including OCS and CPO.
Stated as a priority in 6 of last 6 quarters. Revenue grew from $480.7 million in 2025-Q4 to $1.01 billion in 2026-Q4, more than doubling year over year. Management consistently highlights AI and cloud demand as key growth drivers, with Q1 FY27 guidance at $1.25 billion, exceeding prior targets. The trajectory is delivering strong revenue growth aligned with management's stated priorities.
“AI demand drives Q1 revenue guidance midpoint to $1.25 billion, reaching target model more than a quarter ahead of schedule.”
“Revenue grew 90% year over year to a record $808 million, driven by cloud and AI demand.”
“Scaling rapidly to meet extraordinary customer demand for OCS and CPO, with backlog over $400 million.”
“Strong momentum across data center, data center interconnect, and long-haul markets.”
“Expect continued strong demand for AI data center and long-haul solutions, surpassing $600 million quarterly revenue by June 2026 or earlier.”
“AI-driven cloud growth will continue to drive financial momentum into Q4 and beyond.”
Continue improving gross and operating margins via pricing discipline, operational efficiency, and favorable product mix.
Stated as a priority in 6 of last 6 quarters. Non-GAAP operating margin expanded from 10.8% in 2025-Q3 to 36.6% in 2026-Q4, with gross margin also improving significantly. Management attributes margin expansion to operational rigor, pricing discipline, and product mix. The trajectory is delivering sustained margin improvement consistent with management's stated focus.
Drive EPS growth by combining strong revenue growth with expanding operating margins and operational efficiencies.
Stated as a priority in 6 of last 6 quarters. Non-GAAP diluted EPS increased from $0.57 in 2025-Q3 to $3.23 in 2026-Q4, reflecting strong revenue growth and margin expansion. Management consistently highlights EPS growth as a key objective, and the financial results demonstrate delivering on this priority.
“Non-GAAP diluted net income per share of $3.23.”
Focus on scaling OCS and CPO product lines to meet customer demand and expand total addressable market.
Stated as a priority in 4 of last 6 quarters. Management highlights OCS and CPO as key growth drivers with a backlog exceeding $400 million for OCS and significant orders for CPO. While these drivers are early in revenue contribution, the company is advancing adoption and scaling production, indicating progress consistent with stated priorities.
Manage capital structure prudently including equity issuance and convertible note exchanges to support growth and liquidity.
Stated as a priority in 2 of last 6 quarters. Management has executed convertible note exchanges delivering approximately 5 million shares for $650 million and issued 2.9 million Series A Convertible Preferred Stock shares. These actions reflect disciplined capital allocation to support liquidity and growth. The trajectory shows active management of capital structure consistent with stated priorities.
Over the trailing year it converted 3.41x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 50% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates (low R² over the window).
16 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated neutral grew net income 60% of the time over the next year (vs 57% for the rest of the cohort, n=3673).
Not investment advice. As of 2026-09-04.
“Non-GAAP operating margin of 36.6%, up 440 bps quarter over quarter.”
“Gross margin improved by 540 basis points and operating margin by 700 basis points quarter over quarter.”
“Non-GAAP operating margin expanded above 1,700 basis points year over year.”
“Operating margin expansion of over 1,500 basis points on a non-GAAP basis.”
“Non-GAAP operating margin of 15.0%, up 420 bps quarter over quarter.”
“Non-GAAP operating margin improved to 10.8% from prior periods.”
“Non-GAAP diluted net income per share of $2.37.”
“Non-GAAP diluted net income per share of $1.67.”
“Non-GAAP diluted net income per share of $1.10.”
“Non-GAAP diluted net income per share of $0.88.”
“Non-GAAP diluted net income per share of $0.57.”
“OCS solutions and cloud module business, where we are advancing 1.6T adoption, are beginning to layer in.”
“As key growth drivers of co-packaged optics and optical circuit switches begin to kick in, we expect further earnings power increases.”
“Scaling rapidly to meet extraordinary customer demand for OCS with backlog well beyond $400 million.”
“Received incremental multi-hundred-million-dollar order for CPO, deliverable in first half calendar 2027.”
“Entered into exchange agreements delivering approximately 5 million shares for $650 million of convertible notes.”
“Completed issuance and sale of 2.9 million shares of Series A Convertible Preferred Stock to NVIDIA.”