📊 LITE Key Takeaways
Is Lumentum Holdings Inc. (LITE) a Good Investment?
Lumentum demonstrates exceptional financial health with a fortress balance sheet ($2.6B cash, 0.01x debt/equity), strong profitability margins (38.8% gross, 11.3% net), and robust operating cash flow ($388.4M). However, flat year-over-year revenue and net income growth signals market stagnation or demand headwinds in the communications equipment sector that require resolution before a more bullish stance is warranted.
Fundamentals are stable but unexciting: revenue and earnings are flat with modest profitability, supported by a solid 35% gross margin. A sizable cash balance and low long‑term debt bolster solvency, but sub‑1 liquidity ratios, thin operating margin, and weak cash conversion constrain near‑term upside.
Lumentum Holdings Inc. Key Strengths (LITE)
- Fortress balance sheet with $2.6B cash, minimal $43.2M debt, and 8.6x interest coverage
- Strong profitability with 38.8% gross margin and 11.3% net margin maintained despite revenue stagnation
- Robust operating cash flow of $388.4M providing substantial capital deployment capacity
- Low leverage with minimal long-term debt (0.06x D/E)
- Healthy gross margin (35.2%) supporting core profitability
- Positive operating cash flow with positive, if thin, FCF
LITE Stock Risks: Lumentum Holdings Inc. Investment Risks
- Zero revenue growth YoY and zero net income growth YoY indicating sector maturity or demand deterioration
- High capital intensity with capex consuming 73% of operating cash flow limiting financial flexibility
- Modest free cash flow margin of 5.2% despite strong OCF suggests operational leverage constraints
- Weak liquidity (current 0.61x, quick 0.45x)
- Thin operating margin (5.9%) and modest interest coverage (2.5x)
- No growth in revenue and net income (flat YoY)
Key Metrics to Watch
- Quarterly revenue growth acceleration and market share trends in communications equipment
- Free cash flow margin expansion and capex efficiency ratios
- Gross margin sustainability and pricing power in competitive optical components market
- Operating margin
- Free cash flow
Lumentum Holdings Inc. (LITE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Lumentum Holdings Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LITE Profit Margin, ROE & Profitability Analysis
LITE vs Telecom Sector: How Lumentum Holdings Inc. Compares
How Lumentum Holdings Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lumentum Holdings Inc. Stock Overvalued? LITE Valuation Analysis 2026
Based on fundamental analysis, Lumentum Holdings Inc. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lumentum Holdings Inc. Balance Sheet: LITE Debt, Cash & Liquidity
LITE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lumentum Holdings Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-1.93 indicates the company is currently unprofitable.
LITE Revenue Growth, EPS Growth & YoY Performance
LITE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $366.5M | -$44.1M | $-0.64 |
| Q2 2025 | $366.8M | -$60.9M | $-0.88 |
| Q1 2025 | $317.6M | -$67.9M | $-1.02 |
| Q3 2024 | $366.5M | -$400.0K | $-0.57 |
| Q2 2024 | $366.8M | -$400.0K | $-0.46 |
| Q1 2024 | $317.6M | -$400.0K | $-0.01 |
| Q3 2023 | $383.4M | -$400.0K | $0.35 |
| Q2 2023 | $446.7M | -$400.0K | $-0.46 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lumentum Holdings Inc. Dividends, Buybacks & Capital Allocation
LITE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lumentum Holdings Inc. (CIK: 0001633978)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 22, 2026 | 4 | xslF345X06/form4-05222026_080529.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05202026_120544.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05202026_120500.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05202026_120522.xml | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05202026_120544.xml | View → |
❓ Frequently Asked Questions about LITE
What is the AI rating for LITE?
Lumentum Holdings Inc. (LITE) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LITE's key strengths?
Claude: Fortress balance sheet with $2.6B cash, minimal $43.2M debt, and 8.6x interest coverage. Strong profitability with 38.8% gross margin and 11.3% net margin maintained despite revenue stagnation. ChatGPT: Low leverage with minimal long-term debt (0.06x D/E). Healthy gross margin (35.2%) supporting core profitability.
What are the risks of investing in LITE?
Claude: Zero revenue growth YoY and zero net income growth YoY indicating sector maturity or demand deterioration. High capital intensity with capex consuming 73% of operating cash flow limiting financial flexibility. ChatGPT: Weak liquidity (current 0.61x, quick 0.45x). Thin operating margin (5.9%) and modest interest coverage (2.5x).
What is LITE's revenue and growth?
Lumentum Holdings Inc. reported revenue of $2.0B.
Does LITE pay dividends?
Lumentum Holdings Inc. does not currently pay dividends.
Where can I find LITE SEC filings?
Official SEC filings for Lumentum Holdings Inc. (CIK: 0001633978) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LITE's EPS?
Lumentum Holdings Inc. has a diluted EPS of $2.59.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LITE's fundamental grade?
Based on our AI fundamental analysis in May 2026, Lumentum Holdings Inc. has a B grade with 69% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LITE stock overvalued or undervalued?
Valuation metrics for LITE: ROE of 7.6% (sector avg: 15%), net margin of 11.3% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
What is LITE's AI grade for 2026?
Our dual AI analysis gives Lumentum Holdings Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LITE's free cash flow?
Lumentum Holdings Inc.'s operating cash flow is $388.4M, with capital expenditures of $284.5M. FCF margin is 5.2%.
How does LITE compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 11.3% (avg: 14%), ROE 7.6% (avg: 15%), current ratio 1.14 (avg: 1).