Lumentum Extends Rally on Powerful Q1 Results and Forecast

Lumentum Holdings (LITE) extended its rally into Wednesday’s premarket, with shares up nearly 16% following a strong first-quarter report that handily topped expectations and included robust forward guidance.

Q1 Highlights

Revenue: $533.8M (+58% YoY), beating consensus estimates
Adjusted EPS: $1.10 vs. $1.03 expected (7¢ beat)
GAAP Gross Margin: 34%
Non-GAAP Gross Margin: 39.4%
Operating Margin: 18.7% (non-GAAP)
Net Income: $4.2M vs. loss of $82.4M last year
Cash and Investments: $1.12B

Q2 Guidance

Revenue: $630M–$670M (vs. $561.9M estimate, Bloomberg)
Adjusted EPS: $1.30–$1.50 (vs. $1.17 expected)

CEO Michael Hurlston said:

“We expect over 20% sequential revenue growth, even before meaningful contributions from two of our next major growth engines—optical circuit switches and co-packaged optics.”

He added that cloud transceivers are set to grow in Q2 and should now be on a sustainable upward path.

Market Reaction

The strong guidance, driven by demand across data centers, long-haul optical networks, and AI infrastructure, lifted investor confidence and extended LITE’s multi-day rally.