Lumentum Holdings: Increasing Demand for Indium Phosphide EMLs As A Pivotal Growth Lever!

Lumentum Holdings exhibited a mix of promising potential and notable challenges in its fiscal third-quarter results for 2025. A key positive takeaway is the company’s exceeding of its guidance high-end for both revenue and earnings per share (EPS), mainly driven by strong demand from cloud customers and a recovering networking market. The company reported a revenue of $425.2 million and recorded significant progress in its Cloud & Networking segment, which grew 8% sequentially and 16% year-over-year. This growth was highly fueled by robust demand from hyperscale cloud customers and a sequential 50% growth in cloud transceiver revenue anticipated for the fourth quarter, showcasing the company’s success in capitalizing on cloud and AI opportunities.