Lumentum beats on Q1 EPS of $4.57 and guides Q2 revenue to $1.575bn-$1.625bn

Revenue of $1.26bn fell just short of the $1.27bn expected, which leaves a second large optics win, backed by more than $5bn of purchase commitments, to support the outlook.

Lumentum reported first-quarter earnings of $4.57 a share, $0.30 better than expected, but revenue of $1.26bn fell just short of the $1.27bn forecast, so the outlook carries the report.

Lumentum expects second-quarter fiscal 2027 revenue of $1.575bn to $1.625bn, with non-GAAP operating margin of 45.0% to 46.0% and non-GAAP diluted earnings of $5.90 to $6.20 a share. Those ranges are the bar the next report will be judged against, and a company that has just missed on revenue, even narrowly, has little room to miss on them.

President and CEO Michael Hurlston said growth was led by pump lasers and optical circuit switches, with a second major win in near-packaged and co-packaged optics (NPO/CPO). These systems put optical links beside or inside the chip package. Hurlston said the win is backed by purchase commitments exceeding $5bn.

Commitments of more than $5bn, as Hurlston describes them, give the guidance firmer support than one quarter can, but they are promises to buy and only revenue will prove them. Pump lasers and optical circuit switches drove this quarter, so the next report will show whether those two lines can keep the pace.