Lumentum Holdings crossed a threshold that matters for the AI infrastructure trade: quarterly revenue above $1 billion for the first time. The photonics company reported net revenue of $1.01 billion for its fiscal fourth quarter ended June 27, 2026, up about 109% from $480.7 million a year earlier.
The number was not just a milestone. It beat the consensus estimate of roughly $988 million and arrived with a non-GAAP gross margin of 50.4%, the first time that metric has crossed 50%. Non-GAAP operating margin reached 36.6%, up 2,160 basis points year over year.
Adjusted earnings per share came in at $3.23, ahead of the $2.97 consensus and up 267% from the prior-year period. The company also guided first-quarter fiscal 2027 revenue to a midpoint of $1.25 billion, with non-GAAP operating margin of 39.5% to 40.5%.
The headline GAAP result told a different story. Lumentum recorded a net loss of $7.2 billion, or $84.65 per diluted share, driven almost entirely by a one-time, non-cash loss of $7.8 billion from the equitization of certain convertible notes. That accounting charge masked what the company described as broad-based operational traction.