LITE
Lumentum Holdings Inc.316.15
-18.54-5.54%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
Demand accelerates; capacity strains intensify
Q&A sharpened Lumentum's AI optics momentum, clarifying OCS backlog over $400 million skews mostly to 2027 shipments despite strong calendar 2026 exit above $100 million from three customers. Transceiver demand now challenges prior $1B annual cap as 1.6T ramps faster, fueled by EML strength and improving execution. Capacity strains persist at 25-30% supply gap; management front-loaded >40% InP expansion, eyes new fabs, and pivots to contract manufacturing. LTAs lock pricing power through 2027. They're scrambling for more factory space. Confident tone prevails, but investors track supply execution.
Key Stats
Market Cap
22.42BP/E (TTM)
192.77Basic EPS (TTM)
1.64Dividend Yield
0%Recent Filings
8-K
NVIDIA invests $2B in Lumentum
Lumentum closed a $2 billion private placement of Series A Convertible Preferred Stock to NVIDIA on March 2, 2026, funding U.S. manufacturing expansion and R&D for AI optics. The deal pairs with a multi-year strategic partnership, including NVIDIA's multi-billion purchase commitment for laser components. Conversion awaits HSR clearance. Risks tie to partnership execution.
10-Q
Q2 FY2026 results
Lumentum crushed Q2 FY2026 with revenue jumping 65% y/y to $665.5M, fueled by laser chips and assemblies for AI data centers while systems grew on transceiver volume. Gross margin soared to 36.1% from 24.8% on higher utilization, delivering $64.3M operating income versus a $51.6M loss; diluted EPS swung to $0.89 from -$0.88 (anti-dilution from convertibles noted). Cash hit $657.7M plus $497.6M short-term investments after $184.6M OCF; $3.3B convertible notes now current on stock trigger, with $400M revolver available. Issued $1.3B 2032 Notes to repurchase 2026 Notes. Escrow settlement added $27.5M other income. Noteholders' conversion option strains liquidity. Strong demand persists, but tariff hikes loom.
8-K
Q2 revenue surges 65.5%
Lumentum crushed Q2 FY26 with $665.5M revenue, up 65.5% year-over-year and 24.7% sequentially, flipping to GAAP profit of $78.2M from last year's $60.9M loss. Non-GAAP operating margin soared to 25.2%, fueled by components (66.7%) and systems growth. Revenue hit guidance high. OCS backlog tops $400M; Q3 eyes $780M-$830M.
8-K
CAO retires; Chang appointed
Lumentum's Chief Accounting Officer Matthew Sepe announced retirement on December 29, 2025, staying as SVP Finance until fall 2026 while stepping down from CAO effective February 6, 2026 or post-Q1 10-Q filing. Eric Chang, recent SVP Finance with CFO stints at Digilens and Edgio plus Big Four roots, steps in as CAO. Smooth handoff. No comp changes or conflicts disclosed.
8-K
Lumentum inks $400M revolver
Lumentum secured a $400M senior secured revolving credit facility on December 19, 2025, maturing December 19, 2030, with Wells Fargo as agent; no borrowings drawn yet. Rates tie to secured net leverage (SOFR+1.50-2.50%, base+0.50-1.50%), commitment fees 0.15-0.35%, and covenants cap leverage at 3.25x while requiring 3.00x interest coverage. Lenders hold no obligation for unlimited expansions.
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