Lumentum (LITE)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-07-07
$698.91-4.42%
Close 2026-07-07 · 1-day change
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Track LITE free→Lumentum is growing revenue fast, from $425 million in 2025-Q3 to $808 million in 2026-Q3. Profit margins improved sharply to 21.6% in 2026-Q3. EPS rose from $1.67 in 2026-Q2 to $2.37 in 2026-Q3. The company is well positioned in AI optics and data centers, supported by new facilities and strong demand.
Rising purchase obligations may pressure margins. The recent sharp share price drop signals investor concerns. Capital raises and litigation add risks. If revenue growth or margins weaken, the growth story may falter.
The market prices in about 41% revenue growth and values shares roughly 18% above our fair value. Our fair value is 42% below the Street median, reflecting a more cautious outlook. We see risk in margin pressure and capital allocation that the market may underappreciate.
Breaks if: Purchase obligations growth causes operating margin to fall below 20%
Breaks if: EPS falls below $2.15 in Q2 2026
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Increase earnings per share through strategic initiatives and cost management.
Stated in 2 of last 2 quarters. EPS increased from $1.67 in 2026-Q2 to $2.37 in 2026-Q3, reflecting strong performance. Management's focus on enhancing EPS is showing positive results.
“CEO: 'Non-GAAP diluted earnings per share of $2.37, up from $1.67 in the previous quarter.'”
“Non-GAAP diluted earnings per share of $1.67.”
Breaks if: Operating margin falls below 20% in Q2 2026
Enhance operating margins through operational rigor and pricing discipline.
Stated in 3 of last 3 quarters. Operating margin improved from 9.7% in 2026-Q2 to 21.6% in 2026-Q3, indicating significant progress. Management's focus on margin improvement is delivering results.
“CEO: 'In fiscal Q3, gross margin improved by 540 basis points on quarter and operating margin by 700 basis points.'”
“Non-GAAP operating margin of 30.0% to 31.0%.”
“Non-GAAP operating margin of 20.0% to 22.0%.”
Breaks if: Revenue falls below $650 million in Q3 2026
Focus on increasing revenue through strategic initiatives and market expansion.
Stated in 4 of last 4 quarters. Revenue grew from $425.2 million in 2025-Q3 to $808.4 million in 2026-Q3, showing a strong upward trajectory. Management's focus on revenue growth is delivering substantial results.
“CEO: 'Lumentum delivered an exceptional third quarter, with revenue growing 90% year over year to a record $808 million.'”
“Our forward guidance calls for over 85 percent year-over-year revenue growth.”
“Looking ahead, we expect continued strong demand for our AI data center and long-haul solutions.”
“Our guidance indicates we expect more than 20 percent sequential revenue growth.”