Lumentum (LITE) investor relations material

Executive summary

• Achieved record Q3 FY26 revenue of $808.4 million, up over 90% year-over-year, driven by strong demand in transceivers, laser chips, and both Components and Systems segments.

• GAAP net income reached $144.2 million, reversing a net loss in the prior year; non-GAAP net income was $225.7 million.

• Margin expansion was fueled by operational rigor, pricing discipline, and favorable product mix, especially in laser chips and scale-across components.

• Non-GAAP operating margin and EPS exceeded guidance, reflecting strong product mix and operating leverage.

• Strategic investments in manufacturing capacity, including a new indium phosphide fab in Greensboro, and financing activities support future growth.

Financial highlights

• Q3 FY26 revenue: $808.4 million (up 90.1% YoY), above guidance midpoint.

• GAAP gross margin: 44.2%; GAAP operating margin: 21.6%; GAAP net income: $144.2 million; GAAP EPS: $1.50.

• Non-GAAP gross margin: 47.9% (up 1,270 bps YoY); non-GAAP operating margin: 32.2% (up 2,140 bps YoY); non-GAAP net income: $225.7 million; non-GAAP EPS: $2.37.

• Adjusted EBITDA for Q3 FY26 was $293.5 million, up from $71.0 million in Q3 FY25.

• Cash and short-term investments rose to $3.17 billion, mainly from Series A Convertible Preferred Stock issuance and NVIDIA's direct investment.

Outlook and guidance

• Q4 FY26 revenue projected at $960 million–$1.01 billion; midpoint would be a new record.

• Q4 non-GAAP operating margin expected at 35%–36%; non-GAAP EPS guidance: $2.85–$3.05.

• Anticipates continued strong growth in EML lasers, scale-across components, and transceivers, with demand from AI and cloud customers outpacing supply.

• Confident in reaching $2 billion quarterly revenue goal in the future.