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Dec 27, 2025
Lumentum Q2 2026 Earnings Report
Lumentum reported strong financial results for its fiscal second quarter ended December 27, 2025, with significant year-over-year revenue growth and expanded profitability.
Key Takeaways
Lumentum delivered a standout second quarter, with over 65 percent year-over-year revenue growth and non-GAAP operating margin expansion above 1,700 basis points. Revenue hit the high end of guidance, while profitability and EPS expanded well beyond prior guidance, demonstrating the leverage of the business model.
Net revenue reached $665.5 million, marking a 65.5% increase year-over-year.
Non-GAAP diluted net income per share was $1.67, significantly exceeding prior guidance.
The company reported a GAAP net income of $78.2 million for the quarter.
Cash, cash equivalents, and short-term investments totaled $1,155.3 million, an increase of $33.5 million from the previous quarter.
Revenue by Segment
Forward Guidance
Lumentum expects continued strong performance for the third quarter of fiscal year 2026, with significant revenue growth and robust non-GAAP operating margin and diluted earnings per share.
Positive Outlook
- Net revenue is projected to be in the range of $780 million to $830 million, indicating continued growth.
- Non-GAAP operating margin is expected to be between 30.0% and 31.0%, reflecting strong profitability.
- Non-GAAP diluted earnings per share are anticipated to be between $2.15 and $2.35.
- The company is scaling rapidly in optical circuit switches (OCS) to meet extraordinary customer demand, with backlog exceeding $400 million.
- An incremental multi-hundred-million-dollar order for co-packaged optics (CPO) has been received, deliverable in the first half of calendar 2027.
Challenges Ahead
- Reconciliations from GAAP to non-GAAP financial measures for the outlook cannot be provided without unreasonable effort.
- A large portion of non-GAAP adjustments, such as stock-based compensation and acquisition-related costs, are highly volatile.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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