Lumentum : Q1FY26-Earnings-Presentation

Q1 FY26 Conference Call

November 4, 2025

Beginning Q1 FY26, we disaggregate revenue by product type: Components and Systems.

• Components: Individual building blocks (e.g., laser chips, sub-assemblies, wavelength management systems) supplied to customers who integrate them into larger systems.

• Systems: Complete, stand-alone products (e.g., cloud transceivers, optical circuit switches, industrial lasers) that deliver

full functionality directly to end customers.

Fiscal year 2025 quarterly revenue by product type is shown below:

$ in millions	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25	FY25
Components Systems	$231.4 105.5	$263.7 138.5	$300.8 124.4	$320.4 160.3	$1,116.3 528.7
Total Revenue	$336.9	$402.2	$425.2	$480.7	$1,645.0

A more detailed description of these product type categories can be found in our Form 10-Q filing, dated November 4, 2025.

• Revenue & Performance

  • Cloud and AI business accelerating, driving Q1 revenue up 58% and expanding operating margin >1,500 bps (YoY basis)

  • Q1 revenue and EPS at high end of guided range

• Components

  • Revenue up 18% QoQ and 64% YoY; broad-based growth from intra-data center, DCI, and long-haul applications

  • Set new records in 100G and 200G EML laser shipments and launched CW laser shipments

  • Continued growth in ultra-high-power lasers for CPO solution; broader ramp expected in 2H CY26

  • Narrow linewidth lasers for DCI grew >70% YoY; 7th straight sequential quarter of growth

  • Enabling up to 100km scale-across DCI with industry-leading laser assemblies and transport line subsystems

  • Delivered a record quarter in pump lasers for sub-sea transmission

  • Strong sequential growth in coherent components for long-haul networks

  • 3D sensing revenue below 5% of total company revenue

• Systems

  • Revenue up 47% YoY, led by cloud transceivers, reflecting progress in manufacturing ramp

  • Revenue down 4% QoQ; cloud transceivers ~flat, initial ramp in OCS offset by sequential decline in industrial lasers

  • OCS manufacturing on track to CY26 ramp plans

$ in millions except for EPS, % of revenue	Q1 FY26		Q4 FY25		Q1 FY25
Revenue	$533.8		$480.7		$336.9
Gross Margin	181.5	34.0%	159.9	33.3%	77.9	23.1%
Operating Expenses	174.8	32.7%	168.3	35.0%	160.3	47.6%
Operating Income (Loss)	6.7	1.3%	(8.4)	(1.7)%	(82.4)	(24.5)%
Diluted EPS	$0.05		$2.96		$(1.21)
Diluted Shares-M	78.3		72.0		68.3

$ in millions except for EPS, % of revenue	Q1 FY26		Q4 FY25		Q1 FY25
Revenue	$533.8		$480.7		$336.9
Gross Margin	210.3	39.4%	181.6	37.8%	110.4	32.8%
Operating Expenses	110.5	20.7%	109.3	22.7%	100.4	29.8%
Operating Income	99.8	18.7%	72.3	15.0%	10.0	3.0%
Diluted EPS	$1.10		$0.88		$0.18
Diluted Shares-M	78.3		72.0		69.1

Selected Items $ in millions	Q1 FY26	Q4 FY25
Cash and Short-term Investments	$1,121.8	$877.1
Working Capital (1)	516.6	447.4
Property, Plant & Equipment, net	794.8	726.4
Total Assets	4,613.1	4,218.7
Total Liabilities	3,832.3	3,084.0
Shareholder's Equity	780.8	1,134.7

1. Working capital excluding cash and short-term investments and short-term debt

   Guidance is bas ed on our expectations as of today and will not be updated or confirmed

   $ in millions except for EPS, % of revenue	Q1 FY26 Actual	Q2 FY26 Guidance
   Revenue	$533.8	$630 - $670
   Operating Margin	18.7%	20.0% - 22.0%
   Diluted EPS	$1.10	$1.30 - $1.50
   Diluted Shares - M	78.3	83.5

   • Mid-point of revenue guidance assumes:

     • Components up Q/Q

     • Systems up Q/Q

   • FY26 non-GAAP effective tax rate of 16.5%

Thank you