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- **Record Growth**: Q2 revenue $665.5M (+65% YoY), Q3 guidance $805M midpoint (+85% YoY). Non-GAAP EPS $1.67 vs. prior expectations.
- **OCS Momentum**: $400M+ backlog, shipments ramping H2 2026. CPO orders for UHP lasers, with ELS modules targeting 2.5x ASP gain.
- **AI Leadership**: Optical scale-up first shipments late 2027, leveraging UHP lasers and ELS modules. 1.6T transceivers in lead pack of suppliers.
- **Capacity Expansion**: 40%+ indium phosphide capacity by H2 2026, with CM partnerships to accelerate ramp.
- **Financial Strength**: Gross margin 42.5%, operating margin 25.2%. Cash $1.16B, CapEx $84M for cloud/AI growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue reached $665.5M, up 65% YoY, with a new quarterly record. Q3 guidance midpoint of $805M represents an 85%+ YoY increase.
- **AI Leadership**: Recognized as a foundational engine for AI networks, with OCS backlog exceeding $400M and CPO orders for ultra-high-power lasers.
- **Growth Drivers**:
  - **OCS**: Exceeded $10M/Q1 target by 3 months, with shipments 3Q26+.
  - **Cloud Transceivers**: Sequential growth driven by 1.6T designs, now in the lead pack of suppliers.
  - **CPO**: Secured multi-hundred million dollar orders, with UHP chip shipments ramping H2 2026.
  - **Optical Scale-Up**: First shipments expected late 2027, leveraging UHP lasers and ELS modules.
- **Capacity Expansion**: Front-loaded 40% indium phosphide fab capacity, with additional output from UK and Japan fabs.

**【CFO Financial Commentary】**
- **Q2 Results**: GAAP net income $78.2M, non-GAAP EPS $1.67 (vs. $1.08 prior expectations). Gross margin 42.5%, up 1,020bps YoY.
- **Q3 Guidance**: Revenue $780-830M, non-GAAP EPS $2.15-2.35, operating margin 30-31%.
- **Financial Health**: Cash $1.16B, CapEx $84M for cloud/AI capacity. Operating expenses 17.3% of revenue, up $4.4M QoQ.

**【Q&A Highlights】**
- **OCS Market**: Backlog >$400M, driven by 3+ customers, with H2 2026 shipments. Price increases contributing to margin expansion.
- **Indium Phosphide Capacity**: 20% Q2 capacity increase, with line of sight to 40%+ by H2 2026. Supply-demand gap ~30%.
- **Transceivers**: 1.6T shipments accelerating, with 200G EML ASP 2x 100G. Vertical integration of CW lasers delayed to late 2026.
- **CPO Strategy**: Expanding into ELS modules for higher ASPs. UHP laser shipments ramping H2 2026, with new fabs under consideration.
- **Supply Chain**: Shifting to contract manufacturing in Thailand to meet demand, with CM partnerships for high-volume SKUs.

Lumentum Holdings Inc. (LITE) Q2 2026 Earnings Call Transcript

- **Record Revenue Growth**: Q1 revenue of $533 million (+58% YoY), with Q2 guidance of $630-$670 million, surpassing $600 million target 2 quarters early.
- **Cloud & AI Dominance**: 60% of revenue from cloud/AI infrastructure, with components (laser chips, line subsystems) up 64% YoY and systems (transceivers) up 47% YoY.
- **Key Growth Drivers**: 1.6T transceivers ramping mid-2026, optical circuit switches targeting $100 million/Q4 2026, and CPO adoption accelerating with ultra-high power lasers.
- **Margin Expansion**: Non-GAAP gross margin 39.4%, operating margin 18.7%, with 1.6T transceivers expected to deliver superior margins compared to 800G.

**【CEO Summary Section】**
- Q1 revenue surged 58% YoY to $533 million, the highest quarterly revenue in company history.
- 60% of revenue now comes from cloud and AI infrastructure, driven by hyperscale customers and network equipment manufacturers.
- Growth drivers include cloud transceivers, optical circuit switches, and co-packaged optics. Q2 guidance expects to surpass $600 million in quarterly revenue 2 quarters ahead of schedule.
- Components revenue ($379 million) grew 18% sequentially and 64% YoY, driven by laser chips, line subsystems, and DCI components.
- Systems revenue ($155 million) grew 47% YoY, with cloud transceivers leading the charge.

**【CFO Financial Commentary】**
- Non-GAAP EPS of $1.10, at the high end of guidance, with GAAP net income of $4.2 million.
- Non-GAAP gross margin improved to 39.4%, up 160 basis points sequentially and 660 basis points YoY.
- Operating margin expanded to 18.7%, up 370 basis points sequentially and 1,570 basis points YoY.
- Q2 guidance: Revenue $630-$670 million (midpoint $650 million), non-GAAP EPS $1.30-$1.50, and operating margin 20%-22%.

**【Q&A Highlights】**
- **Transceiver Growth**: Q2 cloud transceiver revenue expected to accelerate, with 1.6T transceivers ramping mid-2026. 40% increase in indium phosphide capacity to support 200G EML shipments, expected to contribute 10% of mix in Q1 2026.
- **OCS Momentum**: Optical circuit switches on track for $100 million quarterly revenue by Q4 2026, with 3 customers in lab testing and software qualification underway.
- **CPO Expansion**: CPO demand stronger than expected, with ultra-high power lasers seeing accelerated adoption and customer engagement expanding.
- **Margin Outlook**: 1.6T transceivers expected to have significantly better margins than 800G, with co-packaged optics and OCS driving long-term margin expansion.

Lumentum Holdings Inc. (LITE) Q1 2026 Earnings Call Transcript

- **Record Q4 Performance**: $480.7M revenue, Cloud & Networking up 67% YoY, Cloud modules grow 50% QoQ.
- **Breakout Products**: 200G EML chips on track for H2 2026, OCS secures 3 hyperscale customers, CPO lands largest purchase commitment.
- **Growth Targets**: $600M quarterly revenue by June 2026, gross margins >40%, operating margins >20%.
- **Financial Strength**: Non-GAAP EPS $0.88, Q1 guidance for $510-540M revenue, 16-17.5% operating margin.
- **Strategic Wins**: Exempt from semiconductor tariffs, sole-source for CPO lasers, EML wafer fab expansion on track.

**【CEO Summary Section】**
- **Revenue Growth**: Q4 revenue reached $480.7M, exceeding revised guidance, with Cloud & Networking segment up 16% sequentially and 67% YoY. Cloud modules grew 50% QoQ, driven by 3 hyperscale customers.
- **Product Highlights**: EML shipments doubled YoY, 200G EML chips received a substantial order for Q1 2026. OCS recognized first revenue with 2 customers, and a third committed for 2026. CPO secured the largest purchase commitment in company history.
- **Future Targets**: Aims for $600M quarterly revenue by June 2026, with gross margins exceeding 40% and operating margins >20%.

**【CFO Financial Commentary】**
- **Q4 Financials**: Non-GAAP EPS of $0.88, up 1,000bps YoY. Gross margin 37.8%, up 260bps QoQ due to better product mix. Operating margin 15%, up 420bps QoQ.
- **Q1 Guidance**: Revenue $510-540M (midpoint new record), operating margin 16-17.5%, EPS $0.95-1.10. CapEx $59M for manufacturing expansion.
- **Cost Management**: Operating expenses up $5.9M QoQ due to incentives and scaling investments, but R&D and SG&A remained disciplined.

**【Q&A Highlights】**
- **OCS Ramp**: Expected to contribute meaningfully in Q1 2026, with capacity expansion in Thailand. Third hyperscale customer committed for 2026.
- **CPO Position**: Sole-source supplier for ultra-high-power lasers, with revenue ramp expected in H2 2026.
- **EML Capacity**: 4-inch wafer transition underway, 6-inch wafers planned. Sold out for FY26, with pricing discussions for 2026+.
- **Tariffs**: Products exempt from new semiconductor tariffs, minimal impact expected in Q1.
- **Gross Margin Trajectory**: 37.8% in Q4, targeting 40%+ at $600M run rate, driven by components and OCS. NPI costs (~150bps) expected to decline as scale improves.

Lumentum Holdings Inc. (LITE) Q4 2025 Earnings Call Transcript

- **Cloud Growth Accelerating**: Q3 Cloud & Networking revenue up 16% YoY, with EML chip shipments setting new records. Q4 cloud transceiver revenue to grow >50% QoQ.
- **Gross Margin Expansion**: Q3 non-GAAP gross margin 35.2%, up 290bps QoQ. On track to achieve >40% gross margin target by 2026.
- **Tariff Mitigation**: 100bps Q4 gross margin headwind from tariffs, but 90%+ of shipments not subject to tariffs. Thailand manufacturing ramp reducing China dependency.
- **CPO Leadership**: Early production units of ultra-high power laser shipped, with H2 2026 revenue ramp expected. CW lasers being added to complement EML leadership.
- **Industrial Tech Restructuring**: Core ultrafast laser business growing, with 2025+ profit improvement expected from portfolio rationalization.


**【CEO Opening Remarks】**
- Lumentum is positioned to capitalize on the convergence of optics and electronics, targeting $750M quarterly revenue, >40% gross margin, and >20% operating margin by 2026.
- Q3 Cloud & Networking segment revenue grew 8% QoQ and 16% YoY, driven by hyperscale cloud demand. EML chip set shipments set a new record, with plans to double this business by end-2025.
- Introduced R300 optical circuit switch for AI clusters, with beta samples being qualified by hyperscalers.
- Thailand manufacturing ramp to begin shipments to second hyperscale customer in June, with Q4 cloud transceiver revenue expected to grow >50% QoQ.

**【CFO Financial Highlights】**
- Q3 revenue: $425.2M (non-GAAP EPS: $0.57), exceeding high end of guidance. Non-GAAP gross margin: 35.2% (up 290bps QoQ), driven by improved manufacturing utilization and product mix.
- Q4 guidance: Revenue $440M-$470M, non-GAAP operating margin 13%-14%, EPS $0.70-$0.80. 100bps gross margin headwind from tariffs, but sequential margin improvement expected.
- Capital expenditures: $59.5M in Q3, focused on expanding Thailand manufacturing and indium phosphide wafer capacity.

**【Key Q&A Takeaways】**
- **Tariff Impact**: 100bps gross margin headwind in Q4, but 90%+ of shipments not subject to tariffs as Lumentum is not importer of record. Moving production from China to Thailand to mitigate risk.
- **CPO Progress**: Early production units of ultra-high power laser shipped, with meaningful revenue expected in H2 2026. CW lasers being ramped alongside EMLs to diversify serviceable market.
- **Transceiver Growth**: Q4 cloud transceiver revenue to grow >50% QoQ, driven by three hyperscale customers. EMLs remain sold out, with CW lasers being externally sourced for now.
- **Industrial Tech Adjustments**: Rationalized portfolio by closing two R&D sites, with focus on core ultrafast laser business (solar cell manufacturing, advanced packaging).
- **Long-Term Confidence**: On track to exceed $500M quarterly run rate by end-2025, with strong demand visibility in cloud and AI infrastructure.


Lumentum (LITE)-6 May 25-2025 Q3 Earnings call transcript

- **Q2 Beat**: $402.2M revenue (+18% YoY) driven by 20% sequential growth in Cloud and Networking segment. Non-GAAP EPS of $0.42 exceeded guidance.
- **EML Supply Tightness**: 200G EML demand outpaces supply into 2026; 40%+ CAGR expected through 2025. Capacity expansion underway in Japan and Thailand.
- **DCI Growth**: Telecom products (e.g., ZR/ZR+ modules) seeing strong demand from cloud and network equipment customers.
- **Leadership Transition**: Alan Lowe retiring as CEO; Michael Hurlston succeeding with immediate Board appointment.
- **2025 Target**: On track for $500M quarterly revenue by end-2025, with potential upside from new customer wins.


**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue of $402.2 million exceeded high-end guidance, driven by 20% sequential growth in Cloud and Networking segment (to $339.2 million) and 18% YoY growth. Key contributors include EML chip shipments (+200G lane speed variants) and new customer ramps.
- **Strategic Focus**: Emphasized AI and cloud market expansion through three pillars: customer base expansion, capacity scaling (e.g., Thailand manufacturing), and R&D partnerships. 200G EMLs are critical for 800G/1.6T transceivers, with demand outpacing supply into 2026.
- **Leadership Transition**: Alan Lowe retiring as CEO; Michael Hurlston succeeding. Transition highlights financial/operational strength and confidence in future growth.
- **Future Targets**: On track for $500M quarterly revenue by end-2025, with potential upside from new customer wins (e.g., third hyperscaler ramping in Q4).

**【CFO Financial Commentary】**
- **Q2 Results**: Non-GAAP EPS of $0.42 vs. guidance of $0.37-$0.42, driven by 7.9% operating margin (up 490bps QoQ). Gross margin 32.3% (slight QoQ decline due to new product ramps).
- **Expense Management**: Operating expenses down $2.1M QoQ to $98.3M (24.4% of revenue), reflecting restructuring and cost controls.
- **Q3 Guidance**: Revenue $410M-$425M (9.5%-10.5% operating margin), with Cloud and Networking up ~$25M vs. Q2. CapEx focus on EML/indium phosphide capacity expansion.

**【Q&A Highlights】**
- **EML Supply Constraints**: 200G EML demand exceeds supply into 2026; 40%+ CAGR expected through 2025. Capacity expansion in Japan and Thailand underway.
- **DCI Momentum**: Telecom products (e.g., ZR/ZR+ modules) seeing strong demand from cloud and network equipment customers. Inventory normalization in telecom market.
- **Tariff Impact**: Minimal due to Thailand-based production; focus on Japan/Thailand manufacturing to mitigate risks.
- **Customer Wins**: Second hyperscaler ramping in Q3, third in Q4. All three could be >$100M annually by end-2025.
- **Gross Margin Outlook**: Sequential improvement in Q3 as EML shipments ramp and new product yields stabilize.


Actual												1.26	1.18	1.78	1.99	1.4	1.06	1.79	1.6	1.19	1.47	1.69	1.52	0.75	0.59	0.35	0.32	0.29	0.06	0.18	0.42	0.57	0.88	1.1	1.67
Forecast												1.0525	0.8269	1.4694	1.9131	1.3971	1.0563	1.5477	1.5781	1.1187	1.3278	1.5599	1.3253	0.7771	0.555	0.2741	0.3053	0.2603	0.0247	0.1215	0.3556	0.5015	0.8139	1.0305	1.4087
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+19.71%	+42.70%	+21.14%	+4.02%	+0.21%	+0.35%	+15.66%	+1.39%	+6.37%	+10.71%	+8.34%	+14.69%	-3.49%	+6.31%	+27.69%	+4.81%	+11.41%	+142.91%	+48.15%	+18.11%	+13.66%	+8.12%	+6.74%	+18.55%

LITE

LITE fundamentals

LITE Q2 2026 Earnings

Earnings Call

You can ask Aime

LITE

LITE fundamentals

LITE Q2 2026 Earnings

Earnings Call

LITE Earnings Call Summary for Q2/20265:00 PM on Feb 3, 2026

LITE Earnings Call Summary for Q1/20265:00 PM on Nov 4, 2025

LITE Earnings Call Summary for Q4/20255:00 PM on Aug 12, 2025

LITE Earnings Call Summary for Q3/20255:00 PM on May 6, 2025

LITE Earnings Call Summary for Q2/20255:00 PM on Feb 6, 2025

You can ask Aime