Lumentum Holdings: Can Its Transition to 4-Inch Wafers Supercharge Growth?

Lumentum Holdings recently shared its fourth-quarter and full fiscal year 2025 results, showcasing both strengths and a few areas to monitor. The company, which operates at the forefront of the cloud and AI sector through its advanced photonics solutions, reported a strong performance driven by increased demand for optical components and cloud modules. Significant positives include a noteworthy revenue increase, particularly from the Cloud & Networking segment, which saw a year-over-year growth of 67%. This growth was attributed to heightened demand from hyperscale cloud customers and a substantial uptick in the company’s components and transceiver product lines. The company also announced an all-time high in electro-absorption modulated laser (EML) shipments, nearly doubling revenue compared to the previous year.