Lumentum Q4 Revenue and Margins Surge
Lumentum(NASDAQ:LITE) reported fourth quarter fiscal 2025 results on August 12, 2025, with non-GAAP revenue of $480.7 million and non-GAAP EPS of $0.88, both exceeding the high end of guidance. The company’s non-GAAP gross margin rose to 37.8%, up 260 basis points quarter-over-quarter and 1,000 basis points year-over-year, driven by a 67% year-over-year surge in cloud and networking revenue and strong demand for high-speed laser components and optical circuit switches. The following insights highlight the company’s capacity constraints, new product milestones, and margin expansion, all of which shape the outlook for fiscal 2026 and beyond.
Cloud and networking segment revenue reached $424.1 million, up 16% quarter-over-quarter and 67% year-over-year (non-GAAP), propelled by record electro-absorption modulated laser (EML) shipments and robust demand from hyperscale cloud customers. The company’s wafer fab expansion is ongoing, but manufacturing capacity for laser assemblies remains supply-constrained, with a substantial 200-gig line speed EML chip order scheduled for delivery in December (fiscal Q2 2026).
Persistent supply-demand imbalance is enabling Lumentum to maintain pricing power and margin expansion, positioning the company to benefit from ongoing AI and cloud infrastructure investment cycles.
Source Fool.com
