Lumentum Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Up

Lumentum LITE reported first-quarter fiscal 2026 non-GAAP earnings of $1.1 per share, surpassing the Zacks Consensus Estimate by 6.80%. The company reported non-GAAP earnings of $0.18 per share in the year-ago quarter.Revenues of $533.8 million increased 58% year over year and 11% sequentially, beating the Zacks Consensus Estimate by 1.43%. The uptick can be attributed to cloud and AI growth.In the pre-market trading, shares rose to 14.14%.LITE 1Q26 Quarterly DetailsProduct-wise, Component revenues (71% of total revenues) increased 63.9% year over year to $379.2 million. Sequentially, revenues increased 18.5%. Lumentum Holdings Inc. Price, Consensus and EPS Surprise Lumentum Holdings Inc. price-consensus-eps-surprise-chart | Lumentum Holdings Inc. QuoteSystems revenues (29% of total revenues) increased 46.5% year over year to $154.6 million. However, sequentially, revenues declined 3.6%.LITE 1Q26 Operating DetailsFirst-quarter fiscal 2026 non-GAAP gross margin expanded 660 basis points (bps) from the year-ago quarter to 39.4%.On a non-GAAP basis, research and development expenses increased 10% year over year to $69 million. Selling, General and Administrative expenses rose 10.1% year over year to $41.5 million in the reported quarter.On a non-GAAP basis, operating income was $99.8 million compared with $10 million in the year-ago quarter. The operating margin was 18.7% compared with 3% a year ago.The Adjusted EBITDA was $127.6 million compared with $37 million in the year-ago quarter.LITE Balance Sheet DetailsAs of Sept. 27, 2025, Lumentum had cash and cash equivalents and short-term investments of $1.12 billion million compared with $8.77 billion as of June 28, 2025.As of Sept. 27, 2025, the company had a long-term debt of $2.16 billion, down from $2.56 billion reported as of June 28, 2025.LITE's Strong 2Q26 GuidanceFor the second quarter of fiscal 2026, Lite expects revenues to be $630-$670 million. Non-GAAP Operating margin is expected to be between 20% and 22%.Non-GAAP earnings are expected to be between $1.30 per share and $1.50 per share.Zacks Rank & Stocks to ConsiderLumentum currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer and Technology sector are Exodus movement, Inc. EXOD, CoreWeave CRWV and NVIDIA Corporation NVDA. While Exodus Movement sports a Zacks Rank #1 (Strong Buy) at present, CoreWeave and NVIDIA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Exodus is set to report third-quarter 2025 results on Nov.10. EXOD shares have lost 24.6% year to date.CoreWeave is slated to report third-quarter 2025 results on Nov. 10. CRWV shares have gained 189.4% year to date.NVIDIA is set to report third-quarter 2025 results on Nov. 19. Nvidia shares have surged 47.9% year to date.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report Exodus Movement, Inc. (EXOD): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks