Lumentum stock gains as Q1 revenue jumps and outlook rises

Lumentum reported on Monday, November 2, 2026, that revenue in its fiscal first quarter ended September 26 rose sharply as demand for pump lasers and optical circuit switches accelerated. The company also raised its outlook for the following quarter, according to the Lumentum financial results release.

Lumentum stock traded at 498.30 euros on Lang & Schwarz at 14:13 CET on Friday, November 6, 2026, 2.19 percent above the Xetra close of Thursday. The comparison uses the prior Xetra session because the German market had not reached its closing time.

Revenue growth broadens across products

Revenue reached 1.2626 billion US dollars, up 25.5 percent from the preceding quarter and 136.5 percent from the year-earlier period. Components revenue rose 98.9 percent year over year to 754.2 million US dollars, led by pump lasers. Systems revenue increased 228.8 percent to 508.4 million US dollars as optical circuit switches contributed more strongly.

GAAP gross margin improved to 51.0 percent from 34.0 percent a year earlier, while GAAP operating margin rose to 28.5 percent from 1.3 percent. Non-GAAP gross margin was 53.2 percent and non-GAAP operating margin reached 42.3 percent. GAAP net income was 360.3 million US dollars, or 3.54 US dollars per diluted share, compared with 4.2 million US dollars, or 0.05 US dollars per diluted share, in the prior-year quarter.

Optical switching drives forward view

President and Chief Executive Officer Michael Hurlston said pump lasers and optical circuit switches were the leading contributors to growth. He also said Lumentum secured its second major NPO/CPO win, backed by purchase commitments exceeding 5 billion US dollars, and that demand visibility for optical switching had expanded significantly.

For fiscal second-quarter 2027, Lumentum expects revenue of 1.575 billion to 1.625 billion US dollars. The company guides to a non-GAAP operating margin of 45.0 percent to 46.0 percent and non-GAAP diluted earnings per share of 5.90 to 6.20 US dollars. Management expects sequential revenue growth of approximately 350 million US dollars and operating margin above 45 percent.

The outlook raises the importance of production execution and product mix. Lumentum's release says the company continues to see strength in cloud modules and expects optical switching to become a multi-billion-dollar annual revenue stream; those targets depend on demand, manufacturing capacity and customer orders developing as projected.

The broader market backdrop remains relevant for semiconductor and optical-networking shares; see Current market reports.

For investors, the next reported operating milestone is Lumentum's fiscal second-quarter performance against this higher outlook. More news and analyses on Lumentum stock provide the continuing company and share context.