Lumentum revenue jumps 109% as AI demand books capacity through 2029

Lumentum (LITE) reported fiscal fourth-quarter 2026 revenue of $1.01 billion for the three months ending in June, a 109.3% increase from the same period a year earlier. The company posted an operating margin of 28.0% for the quarter, reversing a small operating loss recorded in the same quarter of 2025. For the full twelve-month period ending in June, the operating margin stood at 17.8%, shifting from a loss of 11.7% of sales in the preceding year.

The revenue growth was driven by both business segments. The Components segment, which is larger, generated $2.01 billion in sales, up 79.7%. Systems sales rose 90.7%, following a 1.6% decline in the previous year. At the end of June, Lumentum held $2.74 billion in cash and short-term investments, a total that exceeded its $1.67 billion in debt.

Management stated on October 9 that demand from AI data centers has effectively booked the company’s production capacity through early 2029. The firm noted that demand for its optical and laser components continues to outstrip its ability to raise manufacturing output, placing the primary risk on the supply side rather than demand. On August 11, management guided fiscal first-quarter 2027 revenue to a range of $1.23 billion to $1.27 billion. The results for that period, which has ended, are currently pending.

The stock recently experienced significant volatility. Shares fell 19.3% in the week ending October 14, a drop that occurred despite upbeat comments from management earlier in the week that had briefly pushed the price higher. Even after this decline, Lumentum shares remain up 458% over the past year, compared with a 17.3% gain for the S&P 500.

Historical data shows Lumentum has taken outsized losses during market shocks compared to the broader market. Since beginning trading in 2015, the stock has fallen 31.8% on average during such events, while the S&P 500 declined by 14.7%. The stock underperformed the market in most shocks, with one exception during the pandemic selloff, where Lumentum lost 29% against a 34% drop for the S&P 500. The median time for Lumentum shares to recover from a low to a prior peak was 2.4 months.

The company’s most severe drawdown occurred during the late-2018 growth scare, when shares fell 39% alongside a 19% drop in the S&P 500. It took 5.6 months for the stock to return to its peak following that low. The recovery period stretched much longer after the 2022 inflation shock, requiring 33.5 months to complete the climb back to previous highs.