Lumentum takes advantage of AI data center demand, shares rise on Q4 results

[Lumentum Corporate Headquarters in San Jose, California, USA]
JHVEPhoto/iStock Editorial via Getty Images

Lumentum (NASDAQ:LITE [https://seekingalpha.com/symbol/LITE]) shares perked up during early post-market trading on Tuesday after the company reported its fourth quarter fiscal 2025 financial results [https://seekingalpha.com/news/4484123-lumentum-non-gaap-eps-of-0_88-beats-by-0_07-revenue-of-480_7m-beats-by-10_78m].

The optical networking manufacturer topped estimates across the board as it benefited from elevated artificial intelligence data center demand.

For the quarter ended June 28, Lumentum reported adjusted earnings per share of $0.88, which was more than the consensus estimate of $0.81.

Revenue for the quarter totaled $480.7M, which was more than the estimate of $469.92M.

For the first quarter of fiscal 2026, Lumentum projects earnings per share ranging from $0.95 to $1.10, which is well above the estimate of $0.88. The company expects revenue ranging from $510M to $540M, which is also well above the consensus of $499.84M.

"This solid performance, combined with sustained customer demand, drove our Q4 revenue above the high end of the upwardly revised guidance we provided in early June," said Lumentum CEO Michael Hurlston. "The outperformance was broad-based across our cloud-focused business, with particular strength in components, specifically EML chips, pump lasers, and narrow linewidth laser assemblies for data center interconnect, as well as 800G modules. Looking ahead, we expect continued strong demand for our AI data center and long-haul solutions, giving us confidence in surpassing $600 million in quarterly revenue by June 2026 or earlier."

On a segment basis, cloud and networking accounted for 88%, or $424.1M, during the fourth quarter. This represented a year-over-year increase of 66%. Industrial tech accounted for $56.6M, or 11.8%, of revenue. It increased 5.6% year over year.

MORE ON LUMENTUM

* Why Lumentum Is A Buy After Third Quarter Earnings [https://seekingalpha.com/article/4793529-lumentum-buy-after-third-quarter-earnings]
* Lumentum Non-GAAP EPS of $0.88 beats by $0.07, revenue of $480.7M beats by $10.78M [https://seekingalpha.com/news/4484123-lumentum-non-gaap-eps-of-0_88-beats-by-0_07-revenue-of-480_7m-beats-by-10_78m]
* Lumentum, Coherent, Fabrinet to benefit from growing optical transceiver market [https://seekingalpha.com/news/4466881-lumentum-coherent-fabrinet-benefit-growing-optical-transceiver-market]
* Seeking Alpha’s Quant Rating on Lumentum [https://seekingalpha.com/symbol/LITE/ratings/quant-ratings]
* Historical earnings data for Lumentum [https://seekingalpha.com/symbol/LITE/earnings]