Q4 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $1.01 billion | 109% year-over-year growth |
| Non-GAAP EPS | $3.23 | Not stated |
| Components Revenue | $649.4 million | 103% year-over-year growth |
| Systems Revenue | $356.9 million | 123% year-over-year growth |
| Non-GAAP Gross Margin | 50.4% | up 1,260 basis points year-on-year |
Guidance and outlook
- Net revenue for the first quarter of fiscal year '27 is expected to be in the range of $1.225 billion to $1.275 billion.
- First quarter non-GAAP operating margin is projected to be in the range of 39.5% to 40.5%.
- Diluted net income per share for the first quarter is expected to be in the range of $4.05 to $4.35.
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised revenue guidance to $1.25 billion for Q1, noted record shipments, and highlighted that they are hitting financial targets ahead of schedule. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Financial Targets
Asked: Joseph Cardoso (JPMorgan) asked how to think about future financial targets given the early achievement of current goals and new opportunities like NPO.
Answer: Management stated they will provide new targets at the next OFC, noting they are running ahead on all metrics and seeing incremental opportunities in NPO and CW lasers.
NPO Timing
Asked: Joseph Cardoso (JPMorgan) asked for details on NPO timing and customer architecture preferences.
Answer: Management expects high-volume shipments for scale-up in the second half of calendar 2027, with NPO opportunities following a similar timeline.
OCS Supply/Demand
Asked: Papa Sylla (Citi) asked about the OCS revenue guide and the build-versus-buy calculus for customers.
Answer: Management confirmed they are tracking to the $400 million target and expects to become the primary supplier for OCS as internal customer programs are absorbed.
Competition
Asked: Simon Leopold (Raymond James) asked about competition from Chinese indium phosphide fabs.
Answer: Management stated they have not seen an impact on their numbers and believe their technology differentiation and ability to deliver consistent specifications provide a competitive advantage.
What to watch before the next call
- The ramp of the Greensboro facility, with first revenue expected in early 2028.
- The transition from 800-gig to 1.6T transceiver technology and its impact on margins.
- The evolution of NPO and CPO adoption timelines in calendar 2027 and 2028.
