Gross margins and non-GAAP earnings climb as networking rebound offsets macro pressure
Lumentum reported fiscal third quarter 2025 revenue of $425.2 million, exceeding the high end of its guidance, with strength in cloud and networking applications helping to offset a challenging macroeconomic backdrop. GAAP net loss narrowed to $44.1 million, or $0.64 per share, while non-GAAP net income improved to $40.9 million, or $0.57 per share. Cloud and networking revenue grew 7.7% sequentially and 16.4% year-over-year, representing nearly 86% of total revenue.
CEO Michael Hurlston highlighted Lumentum’s positioning at the convergence of optics and electronics as a key advantage in serving the accelerating buildout of AI data centers. “Our innovations—from advanced EMLs to ultra-high-power lasers—are driving transformative power efficiencies across cloud, AI, and long-haul networks,” Hurlston said. The company expects continued momentum in the current quarter, guiding for revenue of $440 million to $470 million and non-GAAP EPS of $0.70 to $0.80.
Key Q3 FY2025 Financial Metrics:
- Revenue: $425.2 million, up 5.7% Q/Q and 16.0% Y/Y
- GAAP gross margin: 28.8%; Non-GAAP gross margin: 35.2%
- GAAP operating loss: (8.9)% ; Non-GAAP operating margin: 10.8%
- GAAP diluted EPS: $(0.64); Non-GAAP diluted EPS: $0.57
- Cloud & Networking revenue: $365.2 million, 85.9% of total
- Industrial Tech revenue: $60.0 million, down 4.8% Q/Q
Lumentum ended the quarter with $866.7 million in cash and short-term investments, down $30 million sequentially, and maintained its focus on innovation across its cloud optics and laser portfolios to capture long-term AI infrastructure demand.
