10-KPeriod: FY2026

Lumentum Holdings Inc. Annual Report, Year Ended Jun 27, 2026

Filed August 17, 2026For Securities:LITE

Summary

Lumentum Holdings Inc. (LITE) reported a significant increase in net revenue for fiscal year 2026, primarily driven by robust demand for its Components products, including laser chips and assemblies, supporting the booming AI and cloud data center markets. The Systems segment also saw substantial growth, largely from cloud transceiver product lines. The company's gross margin improved significantly due to higher factory utilization, favorable product mix, and reduced amortization of acquired intangibles. While the company experienced a substantial net loss in fiscal year 2026, largely attributable to a significant loss on debt extinguishment, the underlying operational performance shows strong growth and improved profitability metrics compared to the prior year. Lumentum is actively investing in expanding its manufacturing capacity to meet the accelerating demand, particularly from AI and cloud customers. The company's strategic focus on technology leadership and customer partnerships positions it well to capitalize on long-term trends in data transmission, AI/ML, and advanced manufacturing.

Key Highlights

  • 1Net revenue surged by 83.2% in fiscal year 2026 to $3,014.0 million, driven by strong demand in Components and Systems segments.
  • 2Gross margin improved dramatically to 41.7% in fiscal year 2026 from 28.0% in fiscal year 2025, reflecting improved factory utilization and product mix.
  • 3The company experienced a net loss of $6,935.1 million in fiscal year 2026, primarily due to a $7,756.6 million loss on debt extinguishment.
  • 4Customer A and Customer B continued to represent significant portions of net revenue, at 26.6% and 15.0% respectively in fiscal year 2026.
  • 5Lumentum is investing in expanding manufacturing capacity to meet accelerating demand, especially from AI and cloud customers.
  • 6The company's cash and cash equivalents significantly increased to $2,043.5 million as of June 27, 2026, from $520.7 million in the prior year, bolstered by financing activities.
  • 7The company is seeing increasing demand from AI and cloud customers that is outpacing current supply, necessitating supply allocation decisions.

Frequently Asked Questions

Lumentum's revenue growth in fiscal year 2026 was primarily driven by strong demand for its Components products, such as laser chips and assemblies, supporting AI, cloud data center, and data center interconnect applications. The Systems segment also contributed significantly, particularly with its cloud transceiver product lines and the initial shipments of optical circuit switches.

The substantial net loss of $6,935.1 million in fiscal year 2026 was predominantly due to a significant 'loss on debt extinguishment' of $7,756.6 million. This loss resulted from exchange arrangements where the company issued common stock in exchange for certain convertible notes, incurring a large conversion value in excess of principal amounts.

Lumentum is actively investing in expanding its manufacturing capacity, both internally and with contract manufacturers, to meet the accelerating demand, especially from AI and cloud customers. The company is also making supply allocation decisions due to demand outpacing current supply.

Lumentum's products are considered essential for AI/ML workloads and the expansion of cloud data centers. The company is investing heavily in next-generation optical components and high-speed optical transceiver modules designed for these applications, positioning itself to benefit from the continued growth in AI infrastructure.