Lumentum posts $1.263 billion quarter, guides up to $1.625 billion on AI optics demand
In brief
- Lumentum (LITE) posted fiscal Q1 2027 adjusted EPS of $4.57 on $1.263 billion in sales.
- Revenue rose 136.5% year over year; GAAP net income reached $360.3 million.
- Second co-packaged optics win carries purchase commitments exceeding $5 billion, the company said.
- Fiscal Q2 guidance: revenue of $1.575 billion to $1.625 billion, EPS of $5.90 to $6.20.
What the quarter looked like
The quarter ended September 26, 2026. Crypto Briefing reported that both the adjusted EPS and the sales figure came in above estimates. On a GAAP basis, Lumentum booked net income of $360.3 million ($3.54 per diluted share).
Some context helps here. Lumentum generated $3.01 billion in revenue in fiscal 2026, and that full-year total was itself up 83% from the prior year.
Three product lines carried the quarter: pump lasers, optical circuit switches, and optical modules aimed at cloud and AI customers. More than 60% of Lumentum's recent revenue was tied to cloud and AI infrastructure, and its components segment revenue more than doubled in recent quarters.
The $5 billion optics win
Lumentum announced its second major win in near-packaged and co-packaged optics (NPO and CPO), and the company said the deal came with purchase commitments exceeding $5 billion. Co-packaged optics moves the optical connection closer to the chip itself, which cuts wasted power and frees up more bandwidth.
The company also pointed to growing demand for optical switching. Lumentum suggested that business may become a multi-billion-dollar annual revenue stream (that's the company's expectation, not a reported figure).
Guidance and the concentration question
For fiscal second-quarter 2027, Lumentum guided revenue between $1.575 billion and $1.625 billion, with non-GAAP operating margin projected at 45% to 46% and EPS expected between $5.90 and $6.20. The company said the guidance reflects expanded operational capacity alongside continued demand from hyperscale data center operators and AI applications. Crypto Briefing also reported that the outlook is backed by a recent $2 billion investment from Nvidia aimed at expanding Lumentum's technical capabilities.
That concentration cuts both ways.
With more than 60% of recent revenue tied to cloud and AI, Crypto Briefing noted, any slowdown in those buildouts would show up quickly in Lumentum's results. It's the same customer base that drove a 136.5% jump in a single quarter, and the guidance doesn't change who that customer base is.
Frequently asked questions
What is co-packaged optics and why does it matter for Lumentum?
Co-packaged optics moves the optical connection much closer to the chip itself, which reduces wasted power and increases available bandwidth. Lumentum announced its second major win in near-packaged and co-packaged optics (NPO and CPO), and the company said it came with purchase commitments exceeding $5 billion.
What guidance did Lumentum give for fiscal Q2 2027?
Lumentum guided fiscal second-quarter 2027 revenue between $1.575 billion and $1.625 billion. It projected non-GAAP operating margin of 45% to 46% and EPS between $5.90 and $6.20, and it tied the outlook to expanded capacity and continued demand from hyperscale data center operators and AI applications.
