LITE
Lumentum Holdings Inc.

Lumentum Holdings Inc.LITE

Technology · Communication Equipment
945.67USD
-0.92%
Sep 23, 2026
LITE overview ready
Key Supplier of High-Speed Optical Components for AI Data-Center Networking
Lumentum is a photonics component supplier with direct exposure to the optical-link content required in high-speed cloud and AI data-center networking, including laser and optical-component building blocks used in transceivers and interconnect architectures.
Direct narrative exposure
Exposed to the AI Compute Infrastructure Buildout narrative through AI Fabric Networking and Optical Interconnect — bottleneck supplier.
Advancing price action
Longer-term context reads extended trend, with a near-term setup of daily advance.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Fundamentals under pressure
Free cash flow yield is weak.
Primary risk
Dependence on capital expenditure cycles in telecommunications and data centers.
Market Sep 22Filing Jun 27Price action Sep 22Research Sep 2

Conviction Level

NarrativeHeat9.5ThemeHeat9.1PriceAction8.0Valuation0.7CompanyPosition9.3
Price
Loading price history…

Price Action

Advancing price action
Longer-term context reads extended trend, with a near-term setup of daily advance.
EntryReset + recovery

The stock remains extended from its long-term weekly base, but the recent reset toward the daily SMA100 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location. The advance off that reset has already consumed part of the entry advantage while the weekly trend remains extended, which tempers the assessment.

Key Financials

Market Cap
$84.8B
Avg Volume (60D)
4.8M
60 sessions
Revenue Growth YoY
+83.2%
FY2026 vs FY2025
Gross Margin
+41.7%
Trailing twelve months
Operating Margin
+17.4%
Trailing twelve months
Free Cash Flow Yield
+0.4%
Distance from 200DMA
+31.3%
Next Earnings
2026-11-05
P/E
N/M
EV / Sales
27.8x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 27, 2026
Filed balance-sheet data as of Jun 27, 2026

Fundamentals & Valuation

Both valuation perspectives agree this company is expensive.
Lumentum Holdings Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command. It trades at a 0.4% free-cash-flow yield and 27.8x revenue, which require sustained delivery to be justified.

Company Research

Thesis
Lumentum is a photonics component supplier with direct exposure to the optical-link content required in high-speed cloud and AI data-center networking, including laser and optical-component building blocks used in transceivers and interconnect architectures.
Opportunity
High opportunity
AI-cluster scale-out and scale-across investment is increasing the need for high-bandwidth, power-efficient optical connectivity as copper reaches practical distance and signal-integrity limits at higher data rates.
Key risk
Dependence on capital expenditure cycles in telecommunications and data centers.

Narrative & Theme

AI Compute Infrastructure Buildout
Part of AI Fabric Networking and Optical Interconnect, with strong fit.
Its data-center photonics portfolio supplies the laser and optical-component layer needed as AI clusters move to higher-speed optical links and distributed data-center interconnect.
Narrative HeatHot9.5 / 10
Theme HeatHot9.1 / 10

Business & Markets

Technology · Communication Equipment
What they do

Lumentum Holdings Inc. designs, manufactures, and sells optical and photonic products globally, serving multiple industries through component and system-level solutions.

How it earns

The company generates revenue primarily through transactional sales of optical components and systems to technology and telecommunications customers.

Products & services
Semiconductor laser chips
Laser sub-assemblies
Optical modules
Optical circuit switches
Industrial lasers
Customers & end markets
Telecommunications providers
Cloud and data center operators
Market position

Lumentum is a leading supplier of lasers and photonic components for high-speed optical communications.

Demand drivers
Medium cyclicality

Demand is influenced by capital spending cycles in telecommunications and data center infrastructure but also benefits from secular growth trends.

Related companies

Finding other covered companies in the same part of this story…