Lumentum Q1 profit beats estimates as demand for data centers remains robust

Reuters
Nov 05, 2025
Lumentum Q1 profit beats estimates as demand for data centers remains robust 

Overview

  • Lumentum fiscal Q1 revenue grows 58% yr/yr, beating analyst expectations

  • Adjusted EPS for fiscal Q1 beats consensus, reflecting robust performance

  • Company anticipates over 20% sequential revenue growth in fiscal Q2

Outlook

  • Lumentum expects Q2 FY26 revenue between $630 mln and $670 mln

  • Company forecasts Q2 FY26 non-GAAP EPS of $1.30 to $1.50

  • Lumentum anticipates Q2 FY26 non-GAAP operating margin of 20% to 22%

Result Drivers

  • DATA CENTER AND LONG-HAUL MARKETS - Co attributes strong Q1 performance to momentum in data center, data center interconnect, and long-haul markets

  • OPTICAL PORTFOLIO - Co says broad optical portfolio positions it well for AI compute expansion

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Beat

$533.79 mln

$525.36 mln (16 Analysts)

Q1 Adjusted EPS

Beat

$1.10

$1.02 (17 Analysts)

Q1 EPS

$0.05

Q1 Adjusted Net Income

Beat

$86.40 mln

$76.32 mln (16 Analysts)

Q1 Adjusted Gross Margin

39.40%

Q1 Adjusted Operating Margin

18.70%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the communications & networking peer group is "buy"

  • Wall Street's median 12-month price target for Lumentum Holdings Inc is $165.00, about 21% below its November 3 closing price of $199.58

  • The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBwgTRrpa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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