Lumentum Holdings Inc.
- Open
- 867.71
- Day high
- 874.00
- Day low
- 857.06
- Prev close
- 868.95
- Volume
- 257K
- Mkt cap
- $77.9B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 16.8
- P/S
- 25.9
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$55.0M over the last 3 months (0 open-market buys, 44 sales)
- 🏛Institutions accumulating (13F)
Lumentum Holdings Inc. (LITE) is a Technology company listed on NASDAQ. The stock is up 557% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 44 sales (SEC Form 4). Drillr has 1 published research article covering LITE.
Lumentum Holdings Inc. (LITE) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LITE earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 11, 2026 | $2.97 | $3.23 | +8.8% | $1.0B | +1.9% |
| May 5, 2026 | $2.27 | $2.37 | +4.4% | $808M | -0.2% |
| Feb 3, 2026 | $1.41 | $1.67 | +18.4% | $666M | +2.1% |
| Aug 12, 2025 | $0.81 | $0.88 | +8.1% | $425M | -9.6% |
| Feb 6, 2025 | $0.34 | $0.42 | +23.5% | $402M | +3.1% |
| Nov 7, 2024 | $0.12 | $0.18 | +48.1% | $337M | +3.6% |
| Aug 14, 2024 | $0.03 | $0.06 | +85.7% | $308M | +2.4% |
| Feb 8, 2024 | $0.31 | $0.32 | +3.2% | $367M | +1.0% |
| Aug 17, 2023 | $0.56 | $0.59 | +5.4% | $371M | +1.2% |
| Feb 9, 2023 | $1.33 | $1.52 | +14.3% | $506M | -0.2% |
| Aug 16, 2022 | $1.35 | $1.47 | +8.9% | $422M | +1.0% |
| May 4, 2022 | $1.13 | $1.19 | +5.3% | $395M | +1.3% |
LITE insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 27, 2026 | HURLSTON MICHAEL E.director, officer: President and CEO | Sell | 548 | $958.66 |
| Aug 27, 2026 | Kim Jaeofficer: SVP, GENERAL COUNSEL | Sell | 1,679 | $856.70 |
| Aug 27, 2026 | Retort Vincentofficer: SEE REMARKS | Sell | 3,511 | $857.95 |
| Aug 27, 2026 | Kim Jaeofficer: SVP, GENERAL COUNSEL | Sell | 815 | $857.96 |
| Aug 27, 2026 | Kim Jaeofficer: SVP, GENERAL COUNSEL | Sell | 205 | $842.39 |
| Aug 27, 2026 | Retort Vincentofficer: SEE REMARKS | Sell | 1,528 | $849.71 |
| Aug 27, 2026 | HURLSTON MICHAEL E.director, officer: President and CEO | Grant | 7,941 | — |
| Aug 27, 2026 | Ali Wajidofficer: EVP & CHIEF FINANCIAL OFFICER | Grant | 5,005 | — |
| Aug 27, 2026 | Chang Ericofficer: SEE REMARKS | Grant | 900 | — |
| Aug 27, 2026 | Wupen Yuenofficer: PRESIDENT, GLOBAL BUS. UNITS | Grant | 22,760 | — |
| Aug 27, 2026 | Retort Vincentofficer: SEE REMARKS | Sell | 3,711 | $852.60 |
| Aug 27, 2026 | Retort Vincentofficer: SEE REMARKS | Sell | 1,213 | $843.60 |
| Aug 27, 2026 | Kim Jaeofficer: SVP, GENERAL COUNSEL | Sell | 970 | $851.31 |
| Aug 27, 2026 | Kim Jaeofficer: SVP, GENERAL COUNSEL | Grant | 11,634 | — |
| Aug 27, 2026 | Retort Vincentofficer: SEE REMARKS | Sell | 800 | $855.84 |
Source: LITE SEC Form 4 filings, latest Aug 27, 2026. For informational purposes only — not investment advice.
See the full LITE insider & 13F page →Lumentum Holdings Inc. company profile
Overview
Lumentum Holdings Inc. (NASDAQ:LITE) is a San Jose, California-based manufacturer of optical and photonic products that was spun off and incorporated in 2015. The company emerged from JDS Uniphase Corporation's optical components business and has since grown through strategic acquisitions, including NeoPhotonics in 2022 and Cloud Light in 2024. Lumentum operates globally across the Americas, Asia-Pacific, Europe, the Middle East, and Africa, serving telecommunications, data communications, and industrial markets with specialized laser and optical communication technologies.
Business
Lumentum operates in the optical communications and photonics industry, manufacturing critical components that enable high-speed data transmission and industrial applications. The company's products are essential building blocks for modern internet infrastructure, cloud computing, and advanced manufacturing processes. The company operates through two primary business segments: Cloud and Networking Segment (approximately 85-90% of revenue): This division produces optical components, modules, and subsystems that enable the transmission of video, audio, and data over high-capacity fiber optic cables. Key products include tunable transponders and transceivers that convert electrical signals to optical signals for long-distance transmission, Electro-absorption Modulated Lasers (EMLs) that modulate light signals at extremely high speeds, and Vertical-Cavity Surface-Emitting Lasers (VCSELs) used in data center interconnects. The segment also manufactures transport products like Reconfigurable Optical Add/Drop Multiplexers (ROADMs) that manage optical signals in telecommunications networks, optical amplifiers that boost signal strength over long distances, and various passive components including filters, isolators, and multiplexers. These products are fundamental to internet infrastructure, enabling everything from streaming video to cloud computing services. Industrial Technology Segment (approximately 10-15% of revenue): This division produces various types of lasers for industrial applications, including diode-pumped solid-state lasers, fiber lasers, and direct-diode lasers used in manufacturing processes. These lasers serve applications in sheet metal processing, precision machining, biotechnology, graphics and imaging, and remote sensing. The segment also historically included 3D sensing products for consumer electronics, though this business has significantly declined.
Revenue model
Lumentum generates revenue primarily through product sales to original equipment manufacturers (OEMs) and system integrators. The company's customers include telecommunications equipment vendors, cloud service providers, data center operators, and industrial equipment manufacturers. The Cloud and Networking segment generates revenue by selling optical components and modules to companies building internet infrastructure. Revenue drivers include the growing demand for higher bandwidth driven by cloud computing, artificial intelligence workloads, and streaming services. The company benefits from the ongoing transition to higher-speed optical technologies, with customers upgrading from 100G to 200G, 400G, and eventually 800G and 1.6T transmission speeds. Lumentum's EML chips and transceivers are particularly valuable as they enable these higher speeds with better power efficiency. The Industrial Technology segment generates revenue through sales of laser systems to manufacturers and research institutions. Revenue depends on industrial capital expenditure cycles, manufacturing activity levels, and adoption of laser-based processing techniques. Several factors influence Lumentum's margins and profitability. Positive factors include the company's technological leadership in high-speed optical components, which commands premium pricing, economies of scale as production volumes increase, and vertical integration capabilities that reduce component costs. The ongoing digital transformation and AI infrastructure buildout create sustained demand for higher-performance optical solutions. Negative factors include intense competition from Asian manufacturers, particularly in commodity optical components, cyclical demand patterns in telecommunications infrastructure spending, and supply chain constraints for specialized materials like indium phosphide wafers. The company also faces margin pressure from customer concentration among large cloud providers who have significant negotiating power. Additionally, the transition of manufacturing capacity outside China to mitigate tariff risks involves near-term costs and complexity.
Competitive moat
Lumentum possesses a moderate technological moat based on its expertise in indium phosphide semiconductor manufacturing and advanced optical component design. The company's competitive advantages stem from several factors: specialized manufacturing capabilities for high-performance EML chips and optical transceivers that require precise engineering and quality control, established relationships with major telecommunications equipment vendors and cloud service providers, and significant research and development investments that keep it at the forefront of optical technology transitions. The company's moat is strengthened by the technical complexity and reliability requirements of its products. Optical components for data center and telecommunications applications must meet stringent performance specifications, and customers are often reluctant to switch suppliers once products are qualified and integrated into their systems. Lumentum's ability to scale production of advanced components like 200G EMLs and its vertical integration capabilities provide additional competitive advantages. However, the moat faces several challenges. The optical components industry includes well-funded competitors, particularly from Asia, who can compete aggressively on price for standardized products. Large customers like cloud service providers actively work to diversify their supplier base to avoid over-dependence on any single vendor. Additionally, some customers are developing internal capabilities or working with alternative suppliers to reduce costs. The industry's cyclical nature and commoditization pressure on mature products also limit pricing power over time. The sustainability of Lumentum's moat depends largely on its ability to continue innovating and maintaining technological leadership as the industry transitions to higher speeds and new architectures like co-packaged optics. While the company has demonstrated this capability historically, the competitive landscape remains challenging, and technological disruption could erode existing advantages.
Risks & safety
Lumentum presents a moderate margin of safety with reasonable financial stability but elevated valuation metrics during a challenging operating period. • Liquidity and Solvency: Strong current ratio of 4.7x and quick ratio of 3.5x indicate solid short-term liquidity. Cash and short-term investments of $516 million provide adequate cushion, though free cash flow has been negative at -$64 million in the most recent quarter. • Debt Levels: High debt-to-equity ratio of 3.0x reflects significant leverage, primarily from acquisition financing. Total liabilities of $3.1 billion against total assets of $4.0 billion indicate substantial financial obligations. • Profitability Concerns: Company is currently unprofitable with negative net income of -$44 million in Q3 2025 and negative return on equity of -5.0%. EBITDA of $27 million is barely positive. • Valuation Metrics: EV/EBITDA of 60x appears extremely high given current profitability levels. Price-to-book ratio of 4.9x suggests the stock is not trading at a significant discount to book value. • Other Considerations: The company is in a transition phase with significant investments in capacity expansion and manufacturing relocation, which pressures near-term profitability but may position it well for future growth.
Recent development
Over the past few years, Lumentum has undergone significant strategic transformation focused on capitalizing on cloud computing and artificial intelligence infrastructure growth. The company completed the major acquisition of NeoPhotonics in 2022 for $918 million, expanding its optical communications portfolio and targeting $50 million in annual synergies. More recently, it acquired Cloud Light to enhance its transceiver capabilities and vertical integration. A key strategic pivot has been the aggressive expansion into cloud and AI markets. The company has secured new hyperscale cloud customers and is rapidly scaling production of EML chips, with shipments expected to more than double by the end of calendar 2025. Lumentum is investing heavily in manufacturing capacity expansion, including a $43 million investment in indium phosphide wafer fabrication and new production facilities in Thailand to reduce dependence on Chinese manufacturing. The company has also rationalized its portfolio by exiting certain underperforming areas. In the Industrial Technology segment, it closed two R&D sites and stopped development in three exploratory product areas to focus resources on core competencies. The 3D sensing business, which was once significant, has been largely phased out as market share normalized. Technologically, Lumentum is advancing its roadmap for next-generation optical solutions, developing 200G and 400G lane speed technologies, optical switching solutions for data centers, and co-packaged optics (CPO) for future AI infrastructure. The company has set an ambitious target of reaching $500 million in quarterly revenue by the end of calendar 2025, representing substantial growth from current levels. Leadership transition has also been a recent development, with Michael Hurlston succeeding Alan Lowe as CEO, bringing a focus on executing the cloud and AI strategy while maintaining operational discipline.
LITE company profile · for informational purposes only — not investment advice.
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