Chart 04 — Operating Leverage Engine

Revenue Doubles. Profits Multiply.

Quarterly Net Revenue vs Non-GAAP Operating Income (USD Millions) · Q4 FY2024 → Q3 FY2026
The Operating Leverage Principle in Action
From Q4 FY24 to Q3 FY26, revenue grew +162% (from $308M to $808M). Non-GAAP operating income went from negative (-$8.9M) to +$243M — a swing of over $250M. This is operating leverage: fixed costs (fab depreciation, R&D, headcount) stayed relatively stable while every incremental dollar of revenue flowed disproportionately to the bottom line.
Source: Lumentum Holdings SEC Filings. Non-GAAP Operating Income = Non-GAAP Revenue × Non-GAAP Operating Margin. Q3 FY26 operating income calculated from reported $808.4M revenue × 30.5% non-GAAP operating margin guidance midpoint.
CURIOUS INVESTING INSIGHTS