Zacks Investment Research·21h ago
Lumentum Stock Skyrockets 700% in a Year: Is It Still a Buy?LITE's 700% rally has been fueled by AI and cloud demand, but strong fundamentals and optical networking growth keep its buy case intact.
Lumentum Holdings Inc.(LITE)Earnings, Financials & Key Ratios
LITE•NASDAQ
$698.91
1888.9× P/E·Price updated Jul 7, 2026
AboutLumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates in two segments, Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; vertical-cavity surface-emitting lasers; directly modulated and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in San Jose, California.Show more
- Revenue$1.65B+21.0%
- EBITDA$77M+153.3%
- Net Income$26M+104.7%
- EPS (Diluted)0.37+104.6%
- Gross Margin27.96%+51.1%
- EBITDA Margin4.66%+144.0%
- Operating Margin-10.95%+65.7%
- Net Margin1.57%+103.9%
- ROE2.48%+105.2%
LITE Price & Volume
Lumentum Holdings Inc. (LITE) stock price & volume — 10-year historical chart
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AI Driven Revenue Recovery Fuels Margin Expansion
Investment Thesis • Updated 2026Q3
VerdictNeutral: While the company has achieved a 25.2% free cash flow margin
Growth:Accelerating
Profitability:Moderate
Financial:Healthy
Cash Flow:Improving
Primary Risk:Cyclical demand and inventory
Key Thesis Takeaways
- Lumentum is currently undergoing a significant operational turnaround, evidenced by a 90.1% revenue growth rate in 2026Q3 as it capitalizes on surging demand for AI-related optical infrastructure.
- While the company has successfully transitioned from operating losses to a 21.6% operating margin, investors should remain cautious regarding the sustainability of this growth given the historical volatility in working capital and the $1.1 billion in goodwill that remains on the balance sheet.
- Future performance will likely depend on the company's ability to maintain its current 44.2% gross margin while navigating the cyclical risks inherent in its consumer sensing and telecommunications segments.
Verdict Logic
the current valuation multiples, including a forward P/E of 99.63, suggest that much of the recovery is already priced into the stock.
LITE Growth Metrics
Lumentum Holdings Inc. (LITE) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years6.99%
5 Years-0.4%
3 Years-1.33%
TTM68.98%
Profit CAGR
10 Years-
5 Years-28.18%
3 Years-49.31%
TTM200%
EPS CAGR
10 Years-
5 Years-26.71%
3 Years-48.32%
TTM183.78%
Return on Capital
10 Years2.48%
5 Years0.12%
3 Years-6.42%
Last Year-4.81%
LITE Recent Earnings
Lumentum Holdings Inc. (LITE) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 9/12 qtrs (75%)
Q2 2026Latest
May 5, 2026Metric
Actual
Est
EPS
$2.37+4.4%
$2.27
Rev
$808M-0.2%
$810M
Q1 2026
Feb 3, 2026Metric
Actual
Est
EPS
$1.67+18.4%
$1.41
Rev
$666M+2.1%
$652M
Q4 2025
Nov 4, 2025Metric
Actual
Est
EPS
$1.10+6.8%
$1.03
Rev
$534M+1.4%
$526M
Q3 2025
Aug 12, 2025Metric
Actual
Est
EPS
$0.88+8.1%
$0.81
Rev
$425M-9.6%
$471M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 5, 2026 | $2.37vs $2.27+4.4% | $808Mvs $810M-0.2% |
| Q1 2026 | Feb 3, 2026 | $1.67vs $1.41+18.4% | $666Mvs $652M+2.1% |
| Q4 2025 | Nov 4, 2025 | $1.10vs $1.03+6.8% | $534Mvs $526M+1.4% |
| Q3 2025 | Aug 12, 2025 | $0.88vs $0.81+8.1% | $425Mvs $471M-9.6% |
Based on last 12 quarters of dataView full earnings history →
Latest LITE News
Recent stock market news and headlines for Lumentum Holdings Inc. (LITE)
Zacks Investment Research·21h ago
LITE Expands Co-Packaged Optics: Can It Become the Next Growth Driver?Lumentum is expanding its CPO portfolio as AI infrastructure demand rises, with commercial deployments expected to support revenue and earnings growth.
Seeking Alpha·23h ago
Lumentum: The Market Is Counting Lasers While The Business Model Changes Underneath ItLumentum (LITE) is evolving from a component supplier to a full system provider, moving up the optical stack and expanding its value proposition. I rate LITE a buy with 15-20% upside, targeting an implied price of $845.66 based on premium industry positioning and margin expansion. LITE's sales CAGR (83.8% vs 23.1% peers, '25-'27) and margin growth support its premium valuation, solidifying its role in datacenter infrastructure.
The Motley Fool·2 days ago
Nvidia CEO Jensen Huang Highlighted a New AI Bottleneck. 3 AI Stocks That Could Benefit.One of the new congestion points in AI is the speed at which data can be transferred. Nvidia has been aggressively investing in companies that could offer a solution.
Seeking Alpha·4 days ago
Lumentum: The Pullback Before The BreakoutLumentum (LITE) corrected roughly 33% from its peak as valuation excess unwound after the rapid AI-driven repricing phase. Selloff unfolded in four waves, including profit-taking, multiple compression, macro repricing, and sector-wide AI narrative shock. Structural AI demand remains intact, driven by optical interconnect transition, 1.6T scaling, and hyperscaler infrastructure expansion cycles.
Peers Comparison
Key metrics vs top competitors for Lumentum Holdings Inc. (LITE)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $698.91 | $49.9B | 1888.95 | 21.03% | 1.57% | 2.48% | — | |
| $314.13 | $49.81B | -604.10 | 23.42% | 10.59% | 6.94% | — | |
| $114.41 | $9.03B | -178.77 | 82.75% | -8.55% | -6.14% | — | |
| $96.60 | $4.1B | 132.33 | 2.73% | 2.78% | 1.37% | — | |
| $40.22 | $9.31B | 268.13 | 8.39% | -4.03% | -6.92% | — | |
| $418.91 | $59.3B | 492.84 | 18.79% | 7.87% | 15.65% | — |
Compare LITE vs Peers
Lumentum Holdings Inc. (LITE) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
LITE SEC Filings & Documents
Lumentum Holdings Inc. (LITE) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 5, 2026·SEC
Material company update
Apr 8, 2026·SEC
Material company update
Mar 2, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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LITE Frequently Asked Questions
Lumentum Holdings Inc. (LITE) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Lumentum Holdings Inc.'s revenue?
Lumentum Holdings Inc. (LITE) reported $2.49B in revenue for fiscal year 2025. This represents a 223% increase from $769.9M in 2013.
How fast is Lumentum Holdings Inc. growing?
Lumentum Holdings Inc. (LITE) grew revenue by 21.0% over the past year. This is strong growth.
Is LITE profitable?
Yes, Lumentum Holdings Inc. (LITE) is profitable, generating $439.9M in net income for fiscal year 2025 (1.6% net margin).
Dividend & Returns
What is LITE's return on equity?
Lumentum Holdings Inc. (LITE) has a return on equity (ROE) of 2.5%. This is below average, suggesting room for improvement.
What is Lumentum Holdings Inc.'s free cash flow?
Lumentum Holdings Inc. (LITE) generated $398.5M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.