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SAN JOSE - Lumentum Holdings Inc . (NASDAQ:LITE) shares surged 5% after the optical components maker reported better-than-expected fourth-quarter results driven by robust demand for its cloud products supporting AI data centers.
The company reported adjusted earnings of $0.88 per share for its fiscal fourth quarter, exceeding analyst estimates of $0.80. Revenue reached $480.7 million, surpassing the consensus forecast of $467.31 million and representing a 55.9% increase YoY. The strong performance was attributed to exceptional execution in meeting demand across its portfolio of AI data center products.
"In our fiscal fourth quarter, we executed exceptionally well in meeting robust demand across our portfolio of cloud products supporting AI data centers," said Michael Hurlston, Lumentum President and CEO. "This solid performance, combined with sustained customer demand, drove our Q4 revenue above the high end of the upwardly revised guidance we provided in early June."
The company’s Cloud & Networking segment, which accounted for 88.2% of total revenue, saw a 66.5% YoY increase to $424.1 million. The outperformance was broad-based across cloud-focused business, with particular strength in components like EML chips, pump lasers, and narrow linewidth laser assemblies for data center interconnect, as well as 800G modules.
Lumentum’s adjusted gross margin improved to 37.8% from 27.8% in the same quarter last year, while adjusted operating margin reached 15.0% compared to a loss of 5.1% a year ago.
Looking ahead, Lumentum provided an optimistic outlook for the first quarter of fiscal 2026, projecting revenue between $510 million and $540 million, with the midpoint of $525 million indicating continued sequential growth. The company also expects adjusted earnings per share of $0.95 to $1.10 and improved non-GAAP operating margins of 16.0% to 17.5%.
Management expressed confidence in surpassing $600 million in quarterly revenue by June 2026 or earlier, driven by continued strong demand for AI data center and long-haul solutions.
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