Lumentum stock: Q1 revenue surges 136.5% as outlook rises

Lumentum reported a sharp expansion in its fiscal first quarter on November 2, with demand for pump lasers and optical circuit switches leading growth. In its Lumentum investor release, the company said revenue for the quarter ended September 26, 2026, reached USD 1.2626 billion, up 136.5 percent from the year-earlier period.

Demand lifts revenue and margins

GAAP gross margin rose to 51.0 percent from 34.0 percent a year earlier, while non-GAAP gross margin reached 53.2 percent. GAAP operating margin was 28.5 percent, and the non-GAAP measure was 42.3 percent. GAAP net income came to USD 360.3 million, compared with USD 4.2 million in the prior-year quarter; non-GAAP net income was USD 461.1 million.

Components revenue increased 98.9 percent year over year to USD 754.2 million, while Systems revenue climbed 228.8 percent to USD 508.4 million. Management said the company secured a second major NPO/CPO win during the quarter, backed by purchase commitments exceeding USD 5 billion, and that visibility for optical switching demand had expanded.

Second-quarter outlook rises

For the second quarter of fiscal 2027, Lumentum expects revenue between USD 1.575 billion and USD 1.625 billion. The company projects a non-GAAP operating margin of 45.0 percent to 46.0 percent and non-GAAP diluted earnings per share of USD 5.90 to USD 6.20.

The real-time quote of Lumentum stock traded at 499.73 euros on Lang & Schwarz at 16:06 CET on Thursday, November 5, 2026.

For investors, the results point to accelerating exposure to AI, cloud computing and high-capacity optical networks, while the stronger outlook raises the importance of production capacity and execution. The company also held USD 2.0 billion in cash, cash equivalents and short-term investments at the end of the quarter.

The S&P 500 remains the relevant US market benchmark for Lumentum stock.

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