Lumentum reports ‘record’ third-quarter 2026 results

Lumentum has reported results for its fiscal third quarter that ended March 28th. Earnings exceeded analysts’ expectations with earnings per share of $2.37, compared to the forecast of $2.26. 

The company’s own statement noted the following aspects: an EPS surprise of 4.87% for the third quarter; revenue growth of 90% year-on-year, driven by “strong performance in both components and systems”; and the firm’s stock price was “stable with a slight pre-market decline after the initial earnings release. The statement also noted that “supply chain constraints remain a challenge, potentially impacting future growth.” 

President and CEO Michael Hurlston commented, “Lumentum delivered an exceptional third quarter, with revenue growing 90% year over year to a record $808 million. While our top line growth continues to garner headlines, the more impressive part of our recent performance has been our margin expansion. In fiscal Q3, gross margin improved by 540 basis points on quarter and operating margin by 700 basis points.” 

Hurlston added, “Margin improvement has been driven by many factors including operational rigor, pricing discipline, and product mix. This quarter, mix was aided by strength in laser chips, but also by a less-heralded part of our portfolio, ‘scale-across’ components, which include our pump lasers and narrow linewidth laser assemblies. As our key growth drivers of co-packaged optics and optical circuit switches begin to kick in, we would expect further increases in earnings power.” 

Q3 highlights 

Net revenue for the third quarter of 2026 was $808.4 million. Non-GAAP net income for the third quarter of fiscal year 2026 was $225.7 million, or $2.37 per diluted share. Non-GAAP net income for the second quarter of fiscal year 2026 was $143.9 million, or $1.67 per diluted share. Non-GAAP net income for the third quarter of fiscal year 2025 was $40.9 million, or $0.57 per diluted share. 

The company held $3.17billion in total cash, cash equivalents, and short-term investments at the end of the third quarter of fiscal year 2026, up $2.02 billion from the end of the second quarter - primarily due to the proceeds from the issuance of Series A Convertible Preferred Stock in March 2026. 

Business outlook 

Lumentum also stated that it expects the following for the fourth quarter of fiscal year 2026: 

• Net revenue in the range of $960 million to $1.01 billion 

• Non-GAAP operating margin of 35.0% to 36.0% 

• Non-GAAP diluted earnings per share of $2.85 to $3.05