Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Lumentum Holdings Inc., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2026-06-27), 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-27), 10-K (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-28), 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02).
The profitability profile of the company exhibits a distinct U-shaped trajectory characterized by a severe contraction in margins and returns between late 2021 and mid-2024, followed by a consistent recovery phase that was abruptly interrupted by a significant downturn in the final reported period.
- Gross Profit Margin
- A prolonged decline is observed from a peak of 46.56% in October 2021 to a low of 18.33% in June 2024. This downward trend suggests a sustained period of increasing cost of goods sold or pricing pressure. However, a recovery phase followed, with the margin steadily climbing back to 41.67% by June 2026, indicating an improvement in production efficiency or a favorable shift in product mix.
- Operating and Net Profit Margins
- Operating margins showed greater volatility and a deeper decline than gross margins, transitioning from 31.28% in October 2021 to a trough of -31.93% in June 2024. Net profit margins followed a similar pattern, reaching a nadir of -40.70% in June 2024. While both metrics showed strong recovery through early 2026—with operating margins reaching 17.41% and net margins hitting 17.68% in March 2026—the final period shows a drastic collapse in the net profit margin to -230.10%, signaling a massive non-operating loss or one-time extraordinary item.
- Return on Equity (ROE) and Return on Assets (ROA)
- Efficiency ratios mirrored the margin trends, with ROE dropping from 20.88% to -62.62% by September 2024 and ROA falling from 11.70% to -14.13% in the same period. A recovery trend emerged in 2025, with ROE peaking at 29.72% in December 2025. This recovery was reversed in the final quarter, where ROE plummeted to -149.34% and ROA fell to -94.90%, reflecting a severe impact on shareholder equity and asset productivity.
The data indicates that while the company successfully navigated a multi-year profitability crisis and entered a recovery cycle by 2025, the final reported quarter represents a significant financial anomaly. The divergence between the recovering operating margin and the collapsing net profit margin in the final period suggests that the loss was driven by non-operational factors rather than a failure in core business profitability.
AI Ask an analyst for more
Return on Sales
Return on Investment
Gross Profit Margin
Lumentum Holdings Inc., gross profit margin calculation (quarterly data)
| Jun 27, 2026 | Mar 28, 2026 | Dec 27, 2025 | Sep 27, 2025 | Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Jan 1, 2022 | Oct 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Gross profit | 477,300) | 357,000) | 240,100) | 181,500) | 159,900) | 122,500) | 99,600) | 77,900) | 51,300) | 59,500) | 64,000) | 76,700) | 89,600) | 112,000) | 166,200) | 201,200) | 181,700) | 167,200) | 207,500) | 232,200) | ||||||
| Net revenue | 1,006,300) | 808,400) | 665,500) | 533,800) | 480,700) | 425,200) | 402,200) | 336,900) | 308,300) | 366,500) | 366,800) | 317,600) | 370,800) | 383,400) | 506,000) | 506,800) | 422,100) | 395,400) | 446,700) | 448,400) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Gross profit margin1 | 41.67% | 37.71% | 33.44% | 30.59% | 27.96% | 23.86% | 20.39% | 18.33% | 18.50% | 20.38% | 23.79% | 28.17% | 32.20% | 36.36% | 39.14% | 42.78% | 46.05% | 45.74% | 46.14% | 46.56% | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | — | 48.65% | 47.86% | 47.33% | 46.91% | 46.68% | 46.63% | 46.52% | 46.21% | 45.96% | 45.59% | 45.03% | 44.13% | 43.45% | 43.18% | 43.06% | 43.31% | 43.31% | 43.32% | 43.02% | ||||||
| Arista Networks Inc. | — | — | 63.00% | 63.54% | 64.06% | 64.34% | 64.24% | 64.09% | 64.13% | 64.41% | 64.01% | 62.94% | 61.95% | 60.76% | 60.18% | 60.27% | 61.07% | 61.82% | 62.77% | 63.64% | ||||||
| Cisco Systems Inc. | — | 64.33% | 64.81% | 64.85% | 64.94% | 65.24% | 65.13% | 64.92% | 64.73% | 64.65% | 64.22% | 63.69% | 62.73% | 61.99% | 61.92% | 62.23% | 62.55% | 63.14% | 63.30% | 63.73% | ||||||
| Dell Technologies Inc. | 20.00% | 20.80% | 21.12% | 22.06% | 22.24% | 22.23% | 22.51% | 23.07% | 23.60% | 23.38% | 23.36% | 22.57% | 22.18% | 21.42% | 20.92% | 21.40% | 21.63% | 24.59% | 27.13% | 29.32% | ||||||
| Super Micro Computer Inc. | — | 8.39% | 8.02% | 10.08% | 11.06% | 11.27% | 12.44% | 13.20% | 13.75% | 15.97% | 16.39% | 17.44% | 18.01% | 18.23% | 17.80% | 16.78% | 15.40% | 14.22% | 13.68% | 14.18% | ||||||
Based on: 10-K (reporting date: 2026-06-27), 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-27), 10-K (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-28), 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02).
1 Q4 2026 Calculation
Gross profit margin = 100
× (Gross profitQ4 2026
+ Gross profitQ3 2026
+ Gross profitQ2 2026
+ Gross profitQ1 2026)
÷ (Net revenueQ4 2026
+ Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026)
= 100 × (477,300 + 357,000 + 240,100 + 181,500)
÷ (1,006,300 + 808,400 + 665,500 + 533,800)
= 41.67%
2 Click competitor name to see calculations.
The gross profit margin exhibits a distinct U-shaped trajectory over the analyzed period, characterized by an initial phase of stability, a prolonged period of significant contraction, and a subsequent recovery phase.
- Period of Stability and Initial Decline
- Between October 2021 and July 2022, the gross profit margin remained relatively stable, fluctuating within a narrow range between 45.74% and 46.56%. A downward shift began in October 2022, where the margin dropped to 42.78%, signaling the start of a sustained period of profitability compression.
- Contraction Phase
- A consistent and sharp decline in margin is observed from December 2022 through June 2024. During this interval, the gross profit margin fell from 39.14% to a trough of 18.33%. This decline occurred despite net revenue remaining relatively high in late 2022, suggesting that cost of goods sold increased at a rate significantly exceeding revenue growth, or that the product mix shifted toward lower-margin offerings.
- Recovery and Expansion Phase
- Beginning in September 2024, a steady recovery trend is evident. The gross profit margin climbed from 20.39% to 41.67% by June 2026. This recovery is strongly correlated with a substantial increase in scale; net revenue grew from 308.3 million in June 2024 to 1,006.3 million by June 2026. The simultaneous increase in both revenue and margin indicates improved operational efficiency, better pricing power, or the realization of economies of scale.
- Gross Profit Performance
- Absolute gross profit followed the margin trend closely, falling from a high of 232.2 million in October 2021 to a low of 51.3 million in June 2024. The subsequent recovery was aggressive, with gross profit reaching 477.3 million by June 2026, more than doubling the peak value observed at the start of the analyzed period.
AI Ask an analyst for more
Operating Profit Margin
Lumentum Holdings Inc., operating profit margin calculation (quarterly data)
| Jun 27, 2026 | Mar 28, 2026 | Dec 27, 2025 | Sep 27, 2025 | Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Jan 1, 2022 | Oct 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Income (loss) from operations | 279,300) | 174,500) | 64,300) | 6,700) | (8,400) | (37,700) | (51,600) | (82,400) | (133,400) | (114,600) | (105,200) | (80,800) | (55,900) | (51,400) | (21,900) | 13,500) | 55,400) | 46,800) | 85,200) | 115,900) | ||||||
| Net revenue | 1,006,300) | 808,400) | 665,500) | 533,800) | 480,700) | 425,200) | 402,200) | 336,900) | 308,300) | 366,500) | 366,800) | 317,600) | 370,800) | 383,400) | 506,000) | 506,800) | 422,100) | 395,400) | 446,700) | 448,400) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | 17.41% | 9.53% | 1.18% | -4.94% | -10.95% | -20.72% | -27.02% | -31.60% | -31.93% | -25.08% | -20.39% | -13.31% | -6.55% | -0.24% | 5.12% | 11.34% | 17.71% | 17.46% | 30.10% | 31.28% | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | — | 33.17% | 32.64% | 32.38% | 31.97% | 31.87% | 31.81% | 31.76% | 31.51% | 31.27% | 30.98% | 30.76% | 29.82% | 29.23% | 29.16% | 29.41% | 30.29% | 30.53% | 30.93% | 30.90% | ||||||
| Arista Networks Inc. | — | — | 43.14% | 42.79% | 42.82% | 42.88% | 43.14% | 42.27% | 42.05% | 42.11% | 41.23% | 40.01% | 38.52% | 37.29% | 36.12% | 35.71% | 34.86% | 33.69% | 32.55% | 31.56% | ||||||
| Cisco Systems Inc. | — | 23.36% | 22.75% | 22.12% | 20.76% | 20.30% | 18.98% | 19.37% | 22.64% | 24.95% | 27.21% | 27.17% | 26.37% | 25.89% | 26.10% | 26.91% | 27.09% | 27.36% | 27.09% | 26.98% | ||||||
| Dell Technologies Inc. | 7.18% | 6.93% | 6.72% | 6.66% | 6.53% | 5.93% | 5.81% | 5.69% | 5.89% | 5.39% | 5.54% | 5.45% | 5.64% | 5.88% | 5.12% | 4.99% | 4.60% | 5.26% | 5.51% | 5.72% | ||||||
| Super Micro Computer Inc. | — | 4.48% | 3.68% | 4.40% | 5.70% | 6.09% | 7.42% | 8.23% | 8.08% | 9.72% | 9.40% | 9.65% | 10.68% | 10.64% | 10.39% | 8.75% | 6.45% | 4.52% | 3.27% | 3.20% | ||||||
Based on: 10-K (reporting date: 2026-06-27), 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-27), 10-K (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-28), 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02).
1 Q4 2026 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ4 2026
+ Income (loss) from operationsQ3 2026
+ Income (loss) from operationsQ2 2026
+ Income (loss) from operationsQ1 2026)
÷ (Net revenueQ4 2026
+ Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026)
= 100 × (279,300 + 174,500 + 64,300 + 6,700)
÷ (1,006,300 + 808,400 + 665,500 + 533,800)
= 17.41%
2 Click competitor name to see calculations.
The operational profitability of the entity exhibits a significant U-shaped trajectory, characterized by a prolonged period of margin contraction followed by a robust recovery phase driven by substantial revenue growth.
- Operating Margin Erosion
- A consistent downward trend in operating profit margins is observed starting from October 2021, where the margin was 31.28%. This figure declined steadily, crossing into negative territory in April 2023 (-0.24%) and reaching a trough of -31.93% by June 2024. This decline indicates a period of severe operational inefficiency or a sharp increase in operating expenses relative to revenue.
- Revenue Correlation and Operational Loss
- The contraction in margins aligns with a period of revenue volatility and decline. Net revenue decreased from a high of 506.8 million USD in October 2022 to a low of 308.3 million USD in June 2024. The maximum operational loss of 133.4 million USD was recorded in June 2024, coinciding with the lowest point of the operating profit margin.
- Recovery Phase and Scaling
- A reversal of the downward trend began in September 2024, with margins improving from -31.60% to a positive 1.18% by December 2025. This recovery was catalyzed by an aggressive expansion in net revenue, which grew from 336.9 million USD in June 2024 to over 1 billion USD by June 2026. The ability to scale revenue rapidly while reducing operational losses suggests a successful realignment of the cost structure or a significant increase in market demand.
- Terminal Performance Analysis
- By June 2026, the operating profit margin reached 17.41%, with income from operations totaling 279.3 million USD. Although the margin percentage remains below the initial 2021 peaks, the absolute operating income is substantially higher, reflecting a larger operational scale and a restored capacity for profitability.
AI Ask an analyst for more
Net Profit Margin
Lumentum Holdings Inc., net profit margin calculation (quarterly data)
| Jun 27, 2026 | Mar 28, 2026 | Dec 27, 2025 | Sep 27, 2025 | Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Jan 1, 2022 | Oct 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net income (loss) | (7,161,700) | 144,200) | 78,200) | 4,200) | 213,300) | (44,100) | (60,900) | (82,400) | (252,500) | (127,000) | (99,100) | (67,900) | (60,200) | (39,300) | (31,700) | (400) | 34,700) | 26,000) | 56,700) | 81,500) | ||||||
| Net revenue | 1,006,300) | 808,400) | 665,500) | 533,800) | 480,700) | 425,200) | 402,200) | 336,900) | 308,300) | 366,500) | 366,800) | 317,600) | 370,800) | 383,400) | 506,000) | 506,800) | 422,100) | 395,400) | 446,700) | 448,400) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | -230.10% | 17.68% | 11.95% | 6.11% | 1.57% | -29.87% | -36.98% | -40.70% | -40.21% | -24.91% | -18.52% | -12.62% | -7.45% | -2.02% | 1.56% | 6.61% | 11.61% | 11.04% | 22.57% | 23.68% | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | — | 27.62% | 27.15% | 27.04% | 26.92% | 24.30% | 24.30% | 24.30% | 23.97% | 26.44% | 26.31% | 26.16% | 25.31% | 24.68% | 24.49% | 24.56% | 25.31% | 25.71% | 26.41% | 26.58% | ||||||
| Arista Networks Inc. | — | — | 38.37% | 38.32% | 38.99% | 39.73% | 40.89% | 40.72% | 40.73% | 40.29% | 39.01% | 37.64% | 35.62% | 33.97% | 32.48% | 31.24% | 30.87% | 29.63% | 29.55% | 29.54% | ||||||
| Cisco Systems Inc. | — | 19.69% | 18.76% | 17.90% | 17.97% | 17.60% | 16.96% | 17.73% | 19.18% | 21.88% | 23.49% | 23.40% | 22.13% | 20.89% | 21.26% | 22.00% | 22.91% | 23.28% | 22.94% | 22.44% | ||||||
| Dell Technologies Inc. | 5.23% | 5.01% | 4.77% | 4.72% | 4.81% | 4.49% | 4.41% | 4.04% | 3.63% | 2.92% | 2.03% | 2.01% | 2.39% | 1.74% | 5.07% | 5.49% | 5.50% | 6.83% | 3.92% | 4.21% | ||||||
| Super Micro Computer Inc. | — | 3.70% | 3.11% | 3.77% | 4.77% | 5.34% | 6.94% | 7.55% | 7.69% | 8.88% | 7.92% | 8.29% | 8.98% | 8.93% | 8.70% | 7.38% | 5.49% | 3.96% | 3.00% | 2.89% | ||||||
Based on: 10-K (reporting date: 2026-06-27), 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-27), 10-K (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-28), 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02).
1 Q4 2026 Calculation
Net profit margin = 100
× (Net income (loss)Q4 2026
+ Net income (loss)Q3 2026
+ Net income (loss)Q2 2026
+ Net income (loss)Q1 2026)
÷ (Net revenueQ4 2026
+ Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026)
= 100 × (-7,161,700 + 144,200 + 78,200 + 4,200)
÷ (1,006,300 + 808,400 + 665,500 + 533,800)
= -230.10%
2 Click competitor name to see calculations.
The net profit margin exhibits extreme volatility over the analyzed period, characterized by an initial erosion of profitability, a prolonged phase of negative margins, a subsequent recovery, and a final period of severe financial loss.
- Initial Profitability Decline
- From October 2021 to October 2022, a consistent downward trend is observed, with the net profit margin falling from 23.68% to 6.61%. This decline coincided with a reduction in net income from US$ 81.5 million to a near-breakeven state of -US$ 400 thousand, despite net revenue remaining relatively stable during the first half of this period.
- Period of Sustained Net Losses
- Starting in December 2022, the company entered a period of negative profitability. The net profit margin continued to deteriorate, reaching its lowest point of -40.70% in September 2024. This phase was marked by significant net losses, peaking at US$ 252.5 million in June 2024, alongside a general contraction in net revenue that bottomed at US$ 308.3 million in the same quarter.
- Recovery and Margin Expansion
- A recovery trend emerged in late 2024, with margins gradually trending upward. Profitability returned to positive territory by June 2025 at 1.57% and expanded steadily to 17.68% by March 2026. This turnaround was supported by a robust increase in net revenue, which grew from US$ 402.2 million in September 2024 to US$ 808.4 million by December 2025.
- Terminal Financial Anomaly
- The final quarter ending June 27, 2026, reveals a sharp divergence between revenue and net income. Although net revenue reached its highest recorded level of US$ 1.006 billion, net income plummeted to a loss of US$ 7.16 billion. This resulted in a net profit margin of -230.10%, representing an unprecedented collapse in profitability relative to the preceding quarters.
AI Ask an analyst for more
Return on Equity (ROE)
Lumentum Holdings Inc., ROE calculation (quarterly data)
| Jun 27, 2026 | Mar 28, 2026 | Dec 27, 2025 | Sep 27, 2025 | Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Jan 1, 2022 | Oct 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net income (loss) | (7,161,700) | 144,200) | 78,200) | 4,200) | 213,300) | (44,100) | (60,900) | (82,400) | (252,500) | (127,000) | (99,100) | (67,900) | (60,200) | (39,300) | (31,700) | (400) | 34,700) | 26,000) | 56,700) | 81,500) | ||||||
| Stockholders’ equity | 4,643,900) | 2,973,400) | 846,600) | 780,800) | 1,134,700) | 879,500) | 872,300) | 895,900) | 957,300) | 1,176,700) | 1,277,800) | 1,310,800) | 1,355,800) | 1,538,000) | 1,543,600) | 1,526,400) | 1,875,000) | 1,912,100) | 2,021,900) | 1,971,400) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | -149.34% | 14.79% | 29.72% | 14.41% | 2.28% | -50.02% | -59.93% | -62.62% | -57.09% | -30.10% | -20.86% | -15.19% | -9.71% | -2.39% | 1.85% | 7.67% | 10.61% | 9.71% | 19.05% | 20.88% | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | — | 119.91% | 115.10% | 133.55% | 151.91% | 150.81% | 145.66% | 144.03% | 164.59% | 152.84% | 135.31% | 136.18% | 156.08% | 157.22% | 151.74% | 167.77% | 196.96% | 171.46% | 151.24% | 139.79% | ||||||
| Arista Networks Inc. | — | — | 27.33% | 27.59% | 28.39% | 28.19% | 29.83% | 29.93% | 28.54% | 28.82% | 29.20% | 29.11% | 28.91% | 29.22% | 29.18% | 28.46% | 27.68% | 26.56% | 25.84% | 22.46% | ||||||
| Cisco Systems Inc. | — | 24.47% | 23.21% | 22.04% | 21.73% | 21.32% | 20.18% | 20.75% | 22.70% | 26.47% | 29.06% | 30.04% | 28.44% | 27.12% | 27.25% | 28.56% | 29.70% | 29.72% | 29.94% | 26.69% | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 75.81% | 78.28% | 114.54% | ||||||
| Super Micro Computer Inc. | — | 16.47% | 12.48% | 12.15% | 16.64% | 18.04% | 23.16% | 24.16% | 21.28% | 20.59% | 23.80% | 28.29% | 32.45% | 33.21% | 31.80% | 27.33% | 20.00% | 14.41% | 10.53% | 9.77% | ||||||
Based on: 10-K (reporting date: 2026-06-27), 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-27), 10-K (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-28), 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02).
1 Q4 2026 Calculation
ROE = 100
× (Net income (loss)Q4 2026
+ Net income (loss)Q3 2026
+ Net income (loss)Q2 2026
+ Net income (loss)Q1 2026)
÷ Stockholders’ equity
= 100 × (-7,161,700 + 144,200 + 78,200 + 4,200)
÷ 4,643,900 = -149.34%
2 Click competitor name to see calculations.
The analyzed period exhibits extreme volatility in profitability, characterized by a prolonged decline, a brief recovery phase, and a final period of severe fiscal deterioration.
- Profitability Erosion and Negative Returns
- Between October 2021 and June 2024, a consistent downward trajectory in Return on Equity (ROE) is observed. ROE declined from a peak of 20.88% to a low of -62.62%. This trend was driven by a transition from positive net income to accelerating quarterly losses, which peaked at -252.5 million US dollars by June 2024.
- Equity Contraction
- Stockholders' equity experienced a steady decrease from 1.97 billion US dollars in October 2021 to a minimum of approximately 872 million US dollars by December 2024. This contraction in the equity base occurred simultaneously with mounting net losses, further intensifying the negative ROE percentages observed through early 2025.
- Short-term Recovery Phase
- A reversal in the negative trend occurred between June 2025 and March 2026. During this window, net income returned to positive territory, reaching 213.3 million US dollars in June 2025. Consequently, ROE recovered from -50.02% to a high of 29.72% in December 2025, indicating a temporary restoration of profitability relative to the equity base.
- Extreme Fiscal Volatility
- The final quarter ending June 27, 2026, shows an abrupt and severe shift. Despite a significant expansion of stockholders' equity to 4.64 billion US dollars, an extraordinary net loss of 7.16 billion US dollars resulted in an ROE of -149.34%. This indicates a critical divergence where a substantial increase in equity was completely overwhelmed by a massive loss event.
AI Ask an analyst for more
Return on Assets (ROA)
Lumentum Holdings Inc., ROA calculation (quarterly data)
| Jun 27, 2026 | Mar 28, 2026 | Dec 27, 2025 | Sep 27, 2025 | Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Jan 1, 2022 | Oct 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net income (loss) | (7,161,700) | 144,200) | 78,200) | 4,200) | 213,300) | (44,100) | (60,900) | (82,400) | (252,500) | (127,000) | (99,100) | (67,900) | (60,200) | (39,300) | (31,700) | (400) | 34,700) | 26,000) | 56,700) | 81,500) | ||||||
| Total assets | 7,307,500) | 7,027,900) | 4,805,300) | 4,613,100) | 4,218,700) | 3,975,000) | 3,966,100) | 3,969,600) | 3,931,900) | 4,204,500) | 4,656,000) | 4,545,000) | 4,632,100) | 4,354,000) | 4,418,100) | 4,387,400) | 4,162,200) | 4,133,500) | 3,615,700) | 3,519,000) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | -94.90% | 6.26% | 5.24% | 2.44% | 0.61% | -11.07% | -13.18% | -14.13% | -13.90% | -8.42% | -5.72% | -4.38% | -2.84% | -0.84% | 0.65% | 2.67% | 4.78% | 4.49% | 10.65% | 11.70% | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||
| Apple Inc. | — | 33.64% | 33.03% | 31.05% | 31.18% | 29.95% | 29.37% | 27.94% | 25.68% | 30.75% | 29.75% | 28.55% | 27.51% | 28.28% | 28.40% | 27.45% | 28.29% | 29.63% | 29.07% | 26.38% | ||||||
| Arista Networks Inc. | — | — | 17.05% | 17.18% | 18.05% | 18.60% | 19.67% | 20.86% | 20.31% | 20.74% | 21.18% | 21.69% | 20.98% | 20.96% | 20.88% | 20.11% | 19.96% | 18.90% | 17.77% | 15.27% | ||||||
| Cisco Systems Inc. | — | 9.52% | 8.98% | 8.53% | 8.32% | 8.17% | 7.57% | 7.62% | 8.29% | 9.85% | 13.29% | 13.75% | 12.38% | 11.76% | 11.79% | 12.36% | 12.57% | 12.94% | 12.54% | 11.87% | ||||||
| Dell Technologies Inc. | 5.86% | 5.96% | 5.42% | 5.25% | 5.76% | 5.15% | 4.90% | 4.52% | 3.91% | 3.20% | 2.22% | 2.32% | 2.73% | 2.15% | 6.11% | 6.50% | 6.00% | 5.00% | 3.08% | 3.28% | ||||||
| Super Micro Computer Inc. | — | 5.32% | 3.12% | 5.51% | 7.48% | 10.72% | 14.85% | 13.09% | 11.73% | 11.84% | 13.55% | 14.96% | 17.42% | 18.39% | 18.81% | 13.45% | 8.90% | 5.98% | 4.67% | 4.56% | ||||||
Based on: 10-K (reporting date: 2026-06-27), 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-27), 10-K (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-28), 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02).
1 Q4 2026 Calculation
ROA = 100
× (Net income (loss)Q4 2026
+ Net income (loss)Q3 2026
+ Net income (loss)Q2 2026
+ Net income (loss)Q1 2026)
÷ Total assets
= 100 × (-7,161,700 + 144,200 + 78,200 + 4,200)
÷ 7,307,500 = -94.90%
2 Click competitor name to see calculations.
The return on assets (ROA) for the analyzed period demonstrates significant volatility, transitioning through phases of initial profitability, a prolonged period of negative returns, a brief recovery, and a final severe contraction. The trajectory indicates substantial instability in the efficiency of asset utilization relative to net income generation.
- Initial Erosion of Profitability
- Between October 2021 and October 2022, a consistent downward trend is observed, with ROA declining from a peak of 11.70% to 2.67%. This contraction coincided with a steady decrease in quarterly net income, reflecting a diminishing ability to generate profit from the existing asset base.
- Sustained Period of Negative Returns
- A transition into negative territory occurred in April 2023, marking a period of sustained losses that lasted until March 2025. ROA reached its lowest point during this cycle on June 29, 2024, at -14.13%. This phase was characterized by deepening net losses, which peaked at -252.5 million USD, while total assets remained relatively stable, fluctuating between 3.9 billion and 4.6 billion USD.
- Recovery and Positive Transition
- A recovery phase is evident starting in June 2025, as ROA returned to positive territory at 0.61%. This upward momentum continued through March 2026, with the ratio peaking at 6.26%. This improvement was driven by a return to profitability, with net income reaching 144.2 million USD by the end of the first quarter of 2026.
- Final Period Anomalous Collapse
- The quarter ending June 27, 2026, shows a precipitous and extreme decline in ROA to -94.90%. This collapse resulted from a massive net loss of approximately 7.16 billion USD, occurring despite a significant increase in total assets to 7.3 billion USD, representing the most severe volatility in the entire data set.
AI Ask an analyst for more