Lumentum Raises FY26 Revenue Forecast 61% to $2.64B, 2X ETF Debuts
Lumentum’s Cloud & Networking unit now accounts for 86% of revenue, with FY26 sales forecast to rise 61% to $2.64B and EPS to grow 184% fueled by hyperscaler and Nvidia partnerships. Tradr ETFs will list the first-to-market 2X Long LITE Daily ETF on Cboe Jan. 27, offering 200% daily exposure.
1. Cloud & Networking Segment Dominance
Lumentum’s Cloud & Networking division now accounts for 86% of total revenue, reflecting hyperscaler customers’ rapid deployment of high-speed optical interconnects. This marks a 14 percentage-point increase over the prior fiscal year, driven by robust orders for 400G and 800G transceivers used in AI data center architectures.
2. FY26 Revenue and EPS Projections
Analysts forecast fiscal 2026 revenue to jump 61% year-over-year to $2.64 billion, fueled by expanded sales of externally modulated lasers (EMLs) and coherent optics modules. Consensus estimates also call for adjusted EPS to more than double, with a 184% increase reflecting operating leverage and improved gross margins in high-end products.
3. Technological Leadership in EMLs
Lumentum holds a leading position in externally modulated laser technology, supplying over 70% of EML units used in next-generation 800G pluggable transceivers. The company’s proprietary silicon PIC integration has driven a 25% reduction in module power consumption, strengthening its pricing power and profitability.
4. Strategic Partnerships and Pricing Power
Key partnerships with hyperscale cloud providers and NVIDIA underpin Lumentum’s growth trajectory. The company has secured multi-year supply agreements covering more than 60% of its projected EML output for FY26, enabling it to negotiate ASP increases of 8% on average. These contracts also include built-in price escalators tied to bandwidth milestones.