Marvell to Buy Lumentum, Paying 4.5 Marvell Shares for Each Lumentum Share

By Stock Titan Editorial Team Published November 2, 2026, 07:12 AM EST

Every company reporting the same week, with its date and time, is in StockTitan's Earnings Calendar for the Week of November 2, 2026.

What Lumentum owners get in the Marvell deal

Under the agreement, Lumentum owners will get 4.5 Marvell shares for each Lumentum share. The ratio is fixed, so the number of shares stays the same even when prices move. No cash is part of the offer.

The companies put the deal's enterprise value at $115 billion. Enterprise value is the price of the whole company, counting its debt and cash. They say that works out to about $1,132 a Lumentum share, a premium of about 23.9%.

Those figures use each company's closing price on October 28, 2026. The release calls that the last trading day before market talk of a deal began. Marvell closed at $251.65 that day, and Lumentum at $913.95.

Then Marvell stock fell. It closed at $196.40 on October 30, down 22% in two trading days. At that price, 4.5 Marvell shares were worth $883.80.

That is still about 5% above Lumentum's own October 30 close of $840.70. After the deal, today's Marvell owners will hold about 67% of the combined company and Lumentum's owners about 33%.

When the Marvell and Lumentum deal closes

The boards of both companies approved the agreement unanimously. Closing also depends on the usual other conditions, the release says.

Marvell plans to file a registration statement on Form S-4 with the SEC. It will hold a joint proxy statement, the document both sets of shareholders read before they vote. The release does not say how the deal will be taxed for Lumentum owners.

Matt Murphy stays chairman and chief executive of the combined company. Three Lumentum directors, including Chief Executive Michael Hurlston, will join Marvell's board, which now has seven members.

Why Marvell wants Lumentum

"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," Murphy said. He means the machines that run AI are moving from copper wire to light to link their parts. The release says copper is reaching its physical limits as data needs grow.

The companies say the deal widens the market they can sell into to $550 billion. They expect more than $1 billion a year in cost savings once the deal is fully in place.

They also expect the deal to raise Marvell's adjusted earnings per share in its first year after closing. Lumentum brings its own factories for compound semiconductors, such as indium phosphide, along with its high-power lasers.

Marvell also said its revenue for the quarter to October 31, 2026 is in line with its earlier forecast. It kept the middle of that forecast and narrowed the range around it.

Lumentum earnings show revenue more than doubled

Net revenue was $1.26 billion in the three months to September 26, 2026, the first quarter of Lumentum's 2027 fiscal year. That is up 136.5% from $533.8 million a year earlier, the results release shows.

The result landed inside the $1.225 billion to $1.275 billion range Lumentum had forecast on August 11, 2026. Net income was $360.3 million, up from $4.2 million a year earlier.

Adjusted earnings per share, which leave out stock pay for staff and some other costs, were $4.57. The company had forecast $4.05 to $4.35.

For the next quarter, Lumentum expects revenue of $1.575 billion to $1.625 billion. "Looking ahead, we anticipate adding approximately $350 million in sequential growth in our second quarter, a figure greater than the quarterly revenue of the whole company just two years ago," Hurlston said. So the extra revenue it expects in one quarter is more than all it sold in a single quarter two years ago.

Which Lumentum products grew

A pump laser powers the amplifiers that boost a light signal as it travels down a glass fiber. An optical circuit switch steers beams of light from one fiber to another without first turning them into electric signals. Hurlston named both as the leading sources of growth.

He also said Lumentum won its second major NPO/CPO deal, "backed by purchase commitments exceeding $5 billion." NPO and CPO stand for near-packaged and co-packaged optics. Both put the light parts right beside the processor chip, or inside its package. The release does not name the customer.

Hurlston said demand for the switches has grown enough that optical switching could become "a multi-billion-dollar annual revenue stream." He gave no date.

Lumentum reports two product groups. Components brought in $754.2 million, up 98.9% from a year earlier. Systems grew faster, to $508.4 million, up 228.8%.

Lumentum cash, debt and dividend

Cash, cash equivalents and short-term investments came to $2.0 billion on September 26, 2026. That was $758.8 million less than at the end of June.

Debt due within a year fell to $1,360.3 million from $1,596.9 million over those three months. Long-term debt was $39.3 million.

The quarter before showed a net loss of $7.2 billion. Most of it came from a $7,756.6 million loss on debt extinguishment. That is an accounting loss booked when a company settles debt for more than the value on its books.

Lumentum pays no dividend, and the release says there are no dividends. It mentions no share buybacks. On September 26, 2026 it had 90.6 million common shares, up from 88.6 million at the end of June, plus 2.9 million convertible preferred shares.

Frequently asked questions

The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendation, or an endorsement of any particular investment strategy. Past performance does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now