Lumentum's sales boom was expected. Its margins delivered more.

Research by Ticker Byline shows that Lumentum's sales stayed inside the range it set in August, while its adjusted operating margin exceeded the top of its forecast.

The optical technology supplier reported $1.263 billion of revenue for the quarter ended September 26, 2026, up 136.5% from a year earlier. That fell within its $1.225 billion to $1.275 billion forecast. The company had already anticipated a sharp increase.

It kept more of those sales as adjusted operating profit than it expected. The margin reached 42.3%, above the 39.5% to 40.5% range it had projected.

The profit improvement runs beyond sales growth

Lumentum supplies lasers, optical components and systems that help move data through networks. The company said pump lasers and optical circuit switches were leading contributors to growth, with its cloud modules business also improving gross margins.

Adjusted operating profit reached $534.4 million, compared with $99.8 million a year earlier. Reported operating profit was $359.8 million, up from $6.7 million.

The adjusted figure excludes $146.7 million of stock-based compensation and related payroll taxes, as well as other items. That includes an $89.4 million equity-award modification tied to an executive retirement.

For the next quarter, Lumentum forecasts revenue of $1.575 billion to $1.625 billion and an adjusted operating margin of 45% to 46%. Its latest results met the sales promise; the new outlook calls for another large step up.

What Marvell is offering for that business

Marvell and Lumentum announced their proposed combination on November 2. The agreement gives Lumentum common shareholders 4.5 Marvell shares for each share they own. Lumentum holders would own about 33% of the combined company on a fully diluted basis.

The announced $115 billion enterprise value, which includes debt, uses reference share prices from October 28. The share-exchange ratio is fixed, while its dollar value moves with Marvell's stock price.

The companies expect closing in the first half of 2028, subject to shareholder and regulatory approvals. They target more than $1 billion in annual cost savings, combining Marvell's chip designs with Lumentum's optical technologies.

Marvell also said its preliminary third-quarter revenue remained consistent with its earlier forecast. It kept the $3.15 billion midpoint and narrowed the expected range.

The Lumentum company profile tracks the forecasts and cash position. The Marvell company profile covers its results, completed acquisitions and the pending stock deal.