Lumentum HoldingsXTER:LU2 -6.66%61 Net Margin % is 17.84% as of Mar. 2026, which is 1272% above its 10-year median of 1.30. 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. Among 2,473 Hardware companies, Lumentum Holdings ranks better than 91.67% on this metric.
The historical rank and industry rank for Lumentum Holdings's Net Margin % or its related term are showing as below:
XTER:LU2'
s Net Margin % Range Over the Past 10 Years
Min: -40.21 Med: 1.3 Max: 22.8
Current: 17.68
XTER:LU2's Net Margin % is ranked better than 91.67% of 2473
companies
in the Hardware industry
Industry Median: 2.7
vs XTER:LU2: 17.68
Lumentum Holdings (XTER:LU2) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Lumentum Holdings Net Margin % Related Terms
Lumentum Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings's Net Margin % 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.
XTER:LU2 vs MSI, HPE, CIEN: Net Margin % Comparison
For the Communication Equipment subindustry, Lumentum Holdings's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Net Margin % falls into.
* 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 (XTER:LU2) has a Net Margin % of 17.84% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Lumentum Holdings and its competitors. This is 1272% above median its historical median of 1.30. According to the industry distribution chart, Lumentum Holdings ranks #206 out of 2473 companies in the Hardware industry, placing it in the top 8.3%.
Is Lumentum Holdings' Net Margin % too high?
Lumentum Holdings' current Net Margin % of 17.84% is 1272% above median its 10-year median of 1.30. The Hardware industry median Net Margin % is 2.70. Lumentum Holdings' value of 17.84% is 560.7% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #206 out of 2473 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. 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' Net Margin % compare to MSI and HPE?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #206 out of 2473 companies for Net Margin %. This places Lumentum Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.70. Lumentum Holdings' value of 17.84% is 560.7% above this benchmark. While the company's 10-year median is 1.30 vs. the industry median of 2.70, Lumentum Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Hardware company?
The median Net Margin % among Hardware companies is 2.70, based on 2,473 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current Net Margin % of 17.84% is 560.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median Net Margin % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Net Margin % is 17.84%, which is 1272% above median its own 10-year median of 1.30. 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 Net Margin % is 17.84%, which is 1272% above median its 10-year median of 1.30 and 560.7% above the Hardware industry median of 2.70. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Lumentum Holdings (XTER:LU2), the current Net Margin % is 17.84% 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:
Net Margin %: 17.84% (1272% above median its 10-year median of 1.30)
GF Value™: €80.10 vs. price of €691.40 (763.2% above fair value)
Industry Position: 560.7% above the Hardware median (#206 of 2473)
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 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
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