Lumentum's fiscal fourth-quarter revenue more than doubled to $1.01 billion as AI data centers snapped up its optical components, and the company's guidance for the current quarter blew past Wall Street's estimates. Despite the blowout numbers, the stock barely moved in after-hours trading.
Lumentum reported revenue of $1.01 billion for its fiscal fourth quarter, up 109% from the prior-year period. That compares with $480.7 million in the same period last year. Yet shares moved just fractionally higher after hours on Tuesday, a muted reaction to a quarter that beat expectations across the board.
Guidance clears Wall Street by a wide margin
Analysts tracked by FactSet had projected $987.7 million in revenue, so the actual print came in well ahead. Adjusted earnings per share reached $3.23, up 267% from a year earlier and above the $2.97 Wall Street expected. Adjusted gross margin came in at 50.4%, topping the 48% analysts had projected.
For the first quarter of fiscal 2027, Lumentum guided to revenue between $1.225 billion and $1.275 billion, against analyst estimates of $1.157 billion, with adjusted EPS of $4.05 to $4.35 versus a $3.61 forecast. CEO Michael Hurlston said the company sits "at the heart of a secular industry shift" as data-center architects turn to optical links for AI connectivity.
Optical components sell out through 2028
Behind the numbers, Lumentum's Components segment has grown more than 77% year-over-year in recent quarters, driven by electro-absorption modulated laser chips and pump lasers. Demand for certain EML lasers is now outstripping supply by more than 30%, and the company expects to be sold out in some critical product areas through 2028.
Narrow-linewidth lasers saw year-over-year growth exceeding 120% in one quarter, while pump lasers grew close to 80%. Lumentum's Optical Circuit Switches added to the momentum, with a backlog that has crossed $400 million this year.
Nvidia ties deepen the AI supply chain
Lumentum's stock has climbed more than 600% over the past year as networking components like transceivers and lasers have become essential, and scarce, in data-center buildouts. Mizuho analyst Vijay Rakesh noted that Lumentum is a key supplier of optical equipment for Nvidia, which invested $2 billion in Lumentum in March to support its optics technology and research.
That relationship gives Lumentum multi-year visibility into cloud-operator spending, a shift from the boom-and-bust cycles that once defined its telecom customer base.
Sources: MarketWatch, Crypto Briefing
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