Lumentum Holdings Inc. (LITE) reported record shipments of electro-absorption modulated lasers (EML) for the third quarter of fiscal 2026, driven by strong demand for AI infrastructure. Total laser chip shipments doubled year-over-year, with 200G EML revenues more than doubling sequentially. The company expects EML unit volumes to increase by over 50% by the December 2026 quarter. Fiscal Q4 2026 revenues are projected to be between $960 million and $1.01 billion, with non-GAAP operating margins estimated at 35%-36%.
To meet increasing demand for high-speed optical networking, Lumentum has fully allocated production capacity at its Japanese wafer fab and recently acquired a fifth Indium Phosphide (InP) fab. The company anticipates revenue growth in co-packaged optics (CPO) by late 2026, supported by significant purchase orders and collaborations.
Lumentum’s stock has surged 117.5% in the past six months, with a forward price-to-earnings ratio of 38.62, compared to the industry average of 37.2. The Zacks Consensus Estimate for fiscal 2027 earnings is $18.07 per share, representing a year-over-year increase of 121.15%.
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