Lumentum (LITE) investor relations material

Executive summary

• Achieved Q2 revenue of $665.5 million, up over 65% year-over-year, driven by strong cloud and AI demand, setting a new company record and reaching the high end of guidance.

• Non-GAAP operating margin increased by more than 1,700 basis points year-over-year, with EPS and margins exceeding guidance.

• Positioned as a key technology provider for AI networks, with accelerating demand in cloud transceivers, OCS, and CPO.

• OCS order backlog surpassed $400 million, with most shipments expected in the second half of the year.

• Secured a multi-hundred million dollar CPO order for shipment in 2027 and initiated proactive capacity planning.

Financial highlights

• Q2 revenue reached $665.5 million, up from $402.2 million in Q2 FY25 and $533.8 million in Q1 FY26.

• Non-GAAP gross margin was 42.5%, up from 32.3% year-over-year; GAAP gross margin improved to 36.1% from 24.8%.

• Non-GAAP operating margin was 25.2%, up from 7.9% year-over-year; GAAP operating margin was 9.7%, up from -12.8%.

• Non-GAAP net income was $143.9 million ($1.67 EPS); GAAP net income was $78.2 million ($0.89 EPS).

• Adjusted EBITDA was $198.3 million; cash and short-term investments totaled $1,155.3 million at quarter end.

Outlook and guidance

• Q3 revenue guidance is $780–$830 million, with a midpoint of $805 million, representing over 85% year-over-year growth.

• Q3 non-GAAP operating margin projected at 30–31%; non-GAAP EPS guidance of $2.15–$2.35.

• Two-thirds of sequential revenue growth expected from components, one-third from systems, driven by high-speed transceivers and OCS.