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Lumentum Q3 2025 Earnings Report
Lumentum reported its fiscal third quarter 2025 results, exceeding the high end of its guidance for both revenue and EPS, driven by strong demand from cloud customers and a recovering networking market.
Key Takeaways
Lumentum announced fiscal third quarter 2025 net revenue of $425.2 million, a GAAP net loss of $44.1 million, and a non-GAAP net income of $40.9 million. The company exceeded its guidance for both revenue and EPS, primarily due to strong cloud customer demand and a recovering networking market.
Net revenue for Q3 2025 was $425.2 million, an increase of 5.7% sequentially and 16.0% year-over-year.
GAAP diluted net loss per share was $0.64, while non-GAAP diluted net income per share was $0.57.
Non-GAAP gross margin improved to 35.2%, up from 32.3% sequentially and 28.7% year-over-year.
The company held $866.7 million in total cash, cash equivalents, and short-term investments at the end of the quarter.
Lumentum
Lumentum
Lumentum Revenue by Segment
Revenue by Segment
Cloud Networking Revenue
CapyFin.comIndustrial Tech Revenue
CapyFin.com Forward Guidance
Lumentum expects net revenue for the fiscal fourth quarter 2025 to be in the range of $440 million to $470 million, with a non-GAAP operating margin of 13.0% to 14.0% and non-GAAP diluted earnings per share of $0.70 to $0.80.
Positive Outlook
- Expected net revenue increase to $440 million - $470 million, indicating continued growth.
- Anticipated non-GAAP operating margin of 13.0% - 14.0%, showing improved profitability.
- Projected non-GAAP diluted earnings per share of $0.70 - $0.80, reflecting positive earnings outlook.
- AI-driven cloud growth is expected to continue driving financial momentum.
- Strong demand from cloud customers and a recovering networking market are expected to persist.
Challenges Ahead
- Non-GAAP adjustments are highly volatile and have low visibility, making precise forecasting difficult.
- Stock-based compensation, acquisition-related costs, and restructuring charges are significant non-GAAP adjustments.
- Foreign exchange gains and losses are unpredictable and can impact financial results.
- Non-recurring activities can introduce variability to financial performance.
- The company does not provide GAAP reconciliations for forward guidance due to unreasonable effort, indicating potential complexities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income