Lumentum Holdings (XTER:LU2) EBIT: €256 Mil (TTM As of Mar. 2026)


XTER:LU2 Lumentum Holdings Inc XTER:LU2
61 GF Score
Price €691.40
GF Value €80.10
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Lumentum Holdings EBIT?

Lumentum Holdings XTER:LU2 -6.66% 61 EBIT is €256 Mil as of Mar. 2026. GuruFocus rates XTER:LU2 with a GF Score™ of 61/100 and a GF Value™ of €80.10 (Significantly Overvalued). The stock has 4 warning signs investors should review.

Lumentum Holdings's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €164 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €256 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Lumentum Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was 9.46%. Lumentum Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 50.03%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Lumentum Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 0.46%.


Lumentum Holdings  (XTER:LU2) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Lumentum Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=607.576 * ( 1 - 21.55% )/( (4956.103 + 5122.357)/ 2 )
=476.643372/5039.23
=9.46 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4103.726 - 415.3 - ( 986.626 - max(0, 3217.53 - 1949.853+986.626))
=4956.103

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6079.133 - 497.98 - ( 2744.039 - max(0, 3343.484 - 3802.28+2744.039))
=5122.357

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Lumentum Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=657.4/( ( (720.007 + max(523.674, 0)) + (857.474 + max(526.958, 0)) )/ 2 )
=657.4/( ( 1243.681 + 1384.432 )/ 2 )
=657.4/1314.0565
=50.03 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(321.787 + 487.122 + 154.318) - (415.3 + 1.793 + 22.46)
=523.674

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(381.984 + 547.372 + 128.885) - (497.98 + 6.314 + 26.989)
=526.958

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Lumentum Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=256.226/56070.190
=0.46 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Lumentum Holdings EBIT Related Terms


Lumentum Holdings EBIT Historical Data

* Premium members only.

The historical data trend for Lumentum Holdings's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Lumentum Holdings EBIT Chart

Lumentum Holdings Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 439.73 298.27 -61.75 -345.50 -129.96

Lumentum Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -30.99 -5.20 9.29 87.79 164.35

XTER:LU2 vs MSI, HPE, CIEN: EBIT Comparison

For the Communication Equipment subindustry, Lumentum Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lumentum Holdings EV-to-EBIT vs Hardware Industry

For the Hardware industry and Technology sector, Lumentum Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Lumentum Holdings's EV-to-EBIT falls into.


XTER:LU2
61GF Score
Lumentum Holdings Inc XTER:LU2
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Lumentum Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €256 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €256 Mil mean?
Lumentum Holdings (XTER:LU2) has a EBIT of €256 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Lumentum Holdings.
Is Lumentum Holdings' EBIT too high?
Lumentum Holdings' current EBIT is €256 Mil. Overall, Lumentum Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' EBIT compare to MSI and HPE?
Lumentum Holdings' EBIT of €256 Mil can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Hardware company?
A good EBIT depends on the Hardware industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Lumentum Holdings. Lumentum Holdings's current EBIT is €256 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lumentum Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lumentum Holdings (XTER:LU2) is currently considered Significantly Overvalued. The stock's GF Value™ is €80.10, compared to a current price of €691.40 — trading 763.2% above its estimated fair value. The current EBIT is €256 Mil. Lumentum Holdings' overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Lumentum Holdings (XTER:LU2), the current EBIT is €256 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Lumentum Holdings (XTER:LU2) Overvalued in 2026?

Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued. The current stock price of €691.40 is trading 763.2% above its estimated GF Value™ of €80.10. GuruFocus considers Lumentum Holdings to be Significantly Overvalued.

Key valuation signals for XTER:LU2:

  • EBIT: €256 Mil
  • GF Value™: €80.10 vs. price of €691.40 (763.2% above fair value)
  • GF Score™: 61/100 with 4 warning signs

No single metric tells the full story. See the XTER:LU2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lumentum Holdings Business Description

Address 1001 Ridder Park Drive, San Jose, CA, USA, 95131
Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are Optical Communications and Commercial Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules, and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.
61GF Score

Get the complete analysis for XTER:LU2

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€691.40
Price
€80.10
GF Value