Lumentum Holdings Inc.

Strong upside vs plan; accelerating growth + margins - Q4 revenue +109% YoY to $1.01B (near the top end of guidance) and 8th straight quarter of top-line growth. - Sequential growth >20% for the 3rd consecutive quarter, indicating “revenue velocity” is staying strong even as comparisons get harder. - Non-GAAP gross margin crossed 50% (earlier than expected vs a plan aimed at a ~$2B quarterly run-rate); continued expansion expected from product mix + tight execution. - Non-GAAP operating margin 36.6% (up ~2,160 bps YoY); company argues operating model leverage is working.

Forecast: fiscal Q1 “beat” setup; company targeting $1.25B early - FY Q1 revenue guidance (non-GAAP) $1.225B–$1.275B, $1.25B midpoint = +130% YoY and a record quarter. - Q1 non-GAAP operating margin 39.5%–40.5% (midpoint >2,100 bps YoY expansion). - Company says midpoint reaches the $1.25B target more than one quarter ahead of schedule; Q1 diluted EPS $4.05–$4.35 (midpoint margin above high end of prior target model).

AI optical transition themes: NPO/ELS/OCS and next-gen transceivers - Cloud transceivers: record 800G shipments; 1.6T transceivers began shipping as planned. Management expects 1.6T uptake to intensify in fiscal Q1 and sustain through calendar 2027, driven by hyperscaler AI cluster rollouts. - OCS (optical connectivity systems): supply improved; after doubling shipments from fiscal Q3 to Q4, guidance includes first triple-digit OCS revenue quarter. - NPO (near-packaged optics): described as additive TAM and a faster time-to-market step to CPO; company sees strong NPO momentum and expects significant NPO impact late 2027–2028. - ELS (external light source) module: company received its first external ELS module order for delivery in H2 calendar 2027; ELS module has meaningfully higher ASP than lasers but margins not as high as lasers (mix trade-off).