Revenue growth has accelerated to 90.1% in 2026Q3, driving a recovery in gross margins from a cyclical low of 16.6% in 2024Q4 to 44.2% in the most recent quarter.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 |
|---|
| Sales/Revenue | 2.49B | 1.65B | 1.36B | 1.77B | 1.71B | 1.71B | 1.68B | 1.57B | 1.25B | 1B | 903M | 837.1M | 817.9M | 769.9M |
| Revenue Growth % | 68.98% | 21.03% | -23.08% | 3.18% | 0% | 2.03% | 7.24% | 25.45% | 24.57% | 10.92% | 7.87% | 2.35% | 6.23% | - |
| Cost of Goods Sold | 1.55B | 1.19B | 1.11B | 1.2B | 924M | 924M | 1.03B | 1.14B | 815.6M | 683.5M | 625.7M | 579.2M | 561.3M | 547.1M |
| COGS % of Revenue | - | 72.04% | 81.5% | 67.8% | 53.95% | 53.95% | 61.27% | 72.79% | 65.37% | 68.24% | 69.29% | 69.19% | 68.63% | 71.06% |
| Gross Profit | 938.5M | 459.9M | 251.5M | 569M | 788.6M | 788.6M | 650.2M | 425.9M | 435.3M | 318.1M | 277.3M | 257.9M | 256.6M | 222.8M |
| Gross Margin % | 37.71% | 27.96% | 18.5% | 32.2% | 46.05% | 46.05% | 38.73% | 27.21% | 34.89% | 31.76% | 30.71% | 30.81% | 31.37% | 28.94% |
| Gross Profit Growth % | - | 82.86% | -55.8% | -27.85% | 0% | 21.29% | 52.66% | -2.16% | 36.84% | 14.71% | 7.52% | 0.51% | 15.17% | - |
| Operating Expenses | 701.4M | 640M | 685.5M | 684.7M | 485.3M | 485.3M | 446.1M | 384.9M | 285M | 270.5M | 258.4M | 269.7M | 243.1M | 216.3M |
| OpEx % of Revenue | - | 38.91% | 50.43% | 38.75% | 28.34% | 28.34% | 26.58% | 24.59% | 22.84% | 27.01% | 28.62% | 32.22% | 29.72% | 28.09% |
| Selling, General & Admin | 355.6M | 348.2M | 310.7M | 348.8M | 265.7M | 265.7M | 235.2M | 200.3M | 128.2M | 110.2M | 117.3M | 128.9M | 108.2M | 102.6M |
| SG&A % of Revenue | - | 21.17% | 22.86% | 19.74% | 15.51% | 15.51% | 14.01% | 12.8% | 10.27% | 11% | 12.99% | 15.4% | 13.23% | 13.33% |
| Research & Development | 331.6M | 303.9M | 302.2M | 307.8M | 220.7M | 220.7M | 198.6M | 184.6M | 156.8M | 148.3M | 141.1M | 140.8M | 134.9M | 113.7M |
| R&D % of Revenue | - | 18.47% | 22.23% | 17.42% | 12.89% | 12.89% | 11.83% | 11.79% | 12.57% | 14.81% | 15.63% | 16.82% | 16.49% | 14.77% |
| Other Operating Expenses | 2.6M | -12.1M | 72.6M | 28.1M | -1.1M | -1.1M | 12.3M | 0 | 0 | 12M | 0 | 0 | 0 | 0 |
| Operating Income | 237.1M | -180.1M | -434M | -115.7M | 303.3M | 303.3M | 204.1M | -62.7M | 139.9M | 47.6M | 11.5M | -23.4M | 8.7M | 3.9M |
| Operating Margin % | 9.53% | -10.95% | -31.93% | -6.55% | 17.71% | 17.71% | 12.16% | -4.01% | 11.21% | 4.75% | 1.27% | -2.8% | 1.06% | 0.51% |
| Operating Income Growth % | - | 58.5% | -275.11% | -138.15% | 0% | 48.6% | 425.52% | -144.82% | 193.91% | 313.91% | 149.15% | -368.97% | 123.08% | - |
| EBITDA | 425M | 76.6M | -143.7M | 139.9M | 470.4M | 470.4M | 396M | 94.8M | 217.1M | 108.6M | 66.1M | 27.6M | 53.5M | 49.9M |
| EBITDA Margin % | 17.08% | 4.66% | -10.57% | 7.92% | 27.47% | 27.47% | 23.59% | 6.06% | 17.4% | 10.84% | 7.32% | 3.3% | 6.54% | 6.48% |
| EBITDA Growth % | 4226.21% | 153.31% | -202.72% | -70.26% | 0% | 18.79% | 317.72% | -56.33% | 99.91% | 64.3% | 139.49% | -48.41% | 7.21% | - |
| D&A (Non-Cash Add-back) | 187.9M | 256.7M | 290.3M | 255.6M | 167.1M | 167.1M | 191.9M | 157.5M | 77.2M | 61M | 54.6M | 51M | 44.8M | 46M |
| EBIT | 107.7M | -149.9M | -371.9M | -66.9M | 315.3M | 315.3M | 235.5M | 3M | 147.6M | -54.3M | 9.8M | -23.8M | 10M | 4.7M |
| Net Interest Income | 11M | 12.2M | 27.5M | 5.3M | -74.1M | -74.1M | -45.4M | -22.4M | -9.7M | -4.4M | -100K | -700K | -200K | -1M |
| Interest Income | 28.4M | 34.4M | 61.3M | 40.8M | 6.1M | 6.1M | 15.8M | 13.9M | 8.5M | 1.1M | 0 | 0 | 0 | 0 |
| Interest Expense | 11.2M | 22.2M | 33.8M | 35.5M | 80.2M | 80.2M | 61.2M | 36.3M | 18.2M | 5.5M | 100K | 700K | 200K | 1M |
| Other Income/Expense | 37M | 8M | 28.3M | 13.3M | -68.2M | -68.2M | -29.8M | -11.7M | -10.5M | -107.4M | -1.8M | -1.1M | 1.1M | -2.8M |
| Pretax Income | 274.1M | -172.1M | -405.7M | -102.4M | 235.1M | 235.1M | 174.3M | -33.3M | 129.4M | -59.8M | 9.7M | -24.5M | 9.8M | 3.7M |
| Pretax Margin % | 11.02% | -10.46% | -29.85% | -5.8% | 13.73% | 13.73% | 10.38% | -2.13% | 10.37% | -5.97% | 1.07% | -2.93% | 1.2% | 0.48% |
| Income Tax | -165.8M | -198M | 140.8M | 29.2M | 36.2M | 36.2M | 38.8M | 3.1M | -118.7M | 42.7M | 400K | -21.1M | -900K | -2.8M |
| Effective Tax Rate % | -60.49% | 115.05% | -34.71% | -28.52% | 15.4% | 15.4% | 22.26% | -9.31% | -91.73% | -71.4% | 4.12% | 86.12% | -9.18% | -75.68% |
| Net Income | 439.9M | 25.9M | -546.5M | -131.6M | 198.9M | 198.9M | 135.5M | -36.4M | 248.1M | -102.5M | 9.3M | -3.4M | 10.7M | 6.5M |
| Net Margin % | 17.68% | 1.57% | -40.21% | -7.45% | 11.61% | 11.61% | 8.07% | -2.33% | 19.88% | -10.23% | 1.03% | -0.41% | 1.31% | 0.84% |
| Net Income Growth % | 200% | 104.74% | -315.27% | -166.16% | 0% | 46.79% | 472.25% | -114.67% | 342.05% | -1202.15% | 373.53% | -131.78% | 64.62% | - |
| Net Income (Continuing) | 439.9M | 25.9M | -546.5M | -131.6M | 198.9M | 198.9M | 135.5M | -36.4M | 248.1M | -102.5M | 9.3M | -3.4M | 10.7M | 6.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.57 | 0.37 | -8.12 | -1.93 | 2.68 | 2.68 | 1.75 | -0.51 | 3.92 | -1.69 | -0.05 | -0.06 | 0.18 | 0.11 |
| EPS Growth % | 183.78% | 104.56% | -320.73% | -172.01% | 0% | 53.14% | 443.14% | -113.01% | 331.95% | -3280% | 14.09% | -132.33% | 63.64% | - |
| EPS (Basic) | - | 0.38 | -8.12 | -1.93 | 2.79 | 2.79 | 1.79 | -0.51 | 3.98 | -1.70 | -0.05 | -0.06 | 0.18 | 0.11 |
| Diluted Shares Outstanding | 96.2M | 69.6M | 67.3M | 68.3M | 74.2M | 74.2M | 77.6M | 70.7M | 63.3M | 60.6M | 61.2M | 58.41M | 58M | 58M |
| Basic Shares Outstanding | 71.5M | 69M | 67.3M | 68.3M | 71.2M | 71.2M | 75.9M | 70.7M | 62.3M | 60.47M | 59.1M | 56.67M | 58M | 58M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 5.38% | - | - | - |
Cyclical demand and inventory volatility
According to recent financial disclosures, Lumentum's revenue growth has accelerated significantly, reaching 90.1% in 2026Q3 compared to the contraction observed in 2024, suggesting a robust recovery in demand for optical components as the company benefits from the ongoing expansion of AI-driven data center infrastructure.
The sharp acceleration in top-line performance indicates that the company has successfully navigated the inventory digestion phase that plagued the telecommunications sector throughout 2024. Investors should monitor whether this growth trajectory is sustainable or if it represents a temporary surge driven by the initial deployment of 800G and 1.6T optical transceivers.
As reported in quarterly filings, Lumentum's gross margin has expanded from a cyclical low of 16.6% in 2024Q4 to 44.2% in 2026Q3, reflecting improved manufacturing utilization and a more favorable product mix as the company pivots toward higher-value datacom applications.
This margin expansion suggests that the company's high-fixed-cost structure is finally benefiting from increased production volumes, which effectively dilutes the impact of overhead. However, the sustainability of these margins remains contingent on the company's ability to maintain pricing power in a competitive landscape where datacom components are increasingly commoditized.
Based on the provided income statement data, Lumentum has achieved significant operating leverage, with operating income swinging from a loss of $133.4 million in 2024Q4 to a profit of $174.5 million in 2026Q3, demonstrating the scalability of its vertically integrated manufacturing model.
The rapid improvement in operating margins suggests that management has successfully controlled SG&A expenses while revenue scaled, allowing for a more efficient conversion of gross profit into operating income. Analysts should investigate whether this efficiency is a permanent structural shift or if it remains vulnerable to future fluctuations in fab utilization rates.
Financial statements indicate that Lumentum's net income has experienced extreme volatility, including a $213.3 million profit in 2025Q4 that appears disconnected from core operating performance, suggesting that non-operating items and tax adjustments may be significantly distorting the reported bottom-line results for investors.
The discrepancy between operating losses and net income in certain periods warrants further investigation into the nature of these non-operating gains. Investors should focus on normalized EPS figures to better understand the underlying profitability of the business, as stock-based compensation remains a consistent and material expense that dilutes shareholder value.
While recent growth figures appear impressive, short-sellers may focus on the historical volatility of the consumer sensing segment and the potential for renewed margin compression if the current AI-driven demand cycle experiences a pause or if competitive pressures intensify in the optical transceiver market.
The reliance on a few key growth vectors, such as AI data center interconnects, creates a concentration risk that could lead to significant revenue air pockets if customer spending patterns shift. Furthermore, the company's history of aggressive M&A suggests that future earnings could be impacted by integration challenges or the need for further capital-intensive investments to maintain its technical moat.
Quick answers to the most common questions about buying LITE stock.
For fiscal year 2025, Lumentum Holdings Inc. (LITE) reported total revenue of $1.65B. This represents a 113.7% increase compared to $769.9M in 2013.
Lumentum Holdings Inc. (LITE) is profitable, generating $25.9M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Lumentum Holdings Inc. (LITE) reported an operating income of $-180.1M, resulting in an operating profit margin of -10.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Lumentum Holdings Inc. (LITE) generated $459.9M in gross profit for the year, representing a gross profit margin of 28.0%. This demonstrates the company's core pricing power and production efficiency.