Lumentum Holdings Inc (NASDAQ:LITE) Exceeds Q4 and Full-Year 2025 Expectations with Strong Revenue and Earnings Growth

Lumentum Holdings Inc (NASDAQ:LITE) reported fiscal fourth-quarter and full-year 2025 results that exceeded analyst expectations, sending shares higher in after-hours trading. The optical and photonic products manufacturer posted revenue of $480.7 million for the quarter ended June 28, 2025, surpassing both its own upwardly revised guidance and the consensus estimate of $475.7 million.

Key Financial Highlights

• Revenue Performance:

  • Q4 revenue of $480.7 million, up 55.9% year-over-year and 13.1% sequentially.
  • Full-year revenue reached $1.645 billion, a 21% increase from fiscal 2024.
  • Cloud & Networking segment drove growth, accounting for 88.2% of total revenue ($424.1 million, up 66.5% YoY).

• Earnings Strength:

  • Non-GAAP EPS of $0.88, beating estimates of $0.81.
  • GAAP net income swung to $213.3 million ($2.96 per diluted share) from a loss of $252.5 million in the prior-year quarter.
  • Non-GAAP operating margin expanded to 15%, up from (5.1)% a year ago.

Market Reaction

The stock rose ~2.9% in after-hours trading, reflecting investor optimism around the earnings beat and strong demand outlook. Over the past month, shares had already gained ~24.7%, suggesting positive sentiment ahead of earnings.

Outlook vs. Analyst Estimates

Management provided Q1 fiscal 2026 guidance with revenue expected between $510 million and $540 million, compared to analyst estimates of $507.2 million. The company anticipates non-GAAP EPS of $0.95–$1.10, above the consensus of $0.89. CEO Michael Hurlston expressed confidence in surpassing $600 million in quarterly revenue by June 2026, driven by AI data center and long-haul solutions demand.

Press Release Summary

• Strong demand for cloud and AI data center products, particularly EML chips, pump lasers, and 800G modules.
• Improved profitability with non-GAAP gross margin expanding to 37.8% (up 1,000 bps YoY).
• Cash position strengthened to $877.1 million, up $10.4 million sequentially.

For more detailed earnings estimates and historical performance, view Lumentum’s earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.