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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LITE

LITE fundamentals

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