Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is Lumentum Holdings Inc. (LITE) Halal?

PASS

Lumentum Holdings Inc. · NASDAQ: LITE · Technology

The short answer

Yes — Lumentum Holdings (NASDAQ: LITE) passes this Shariah stock screen. Its business — optical and photonic components, modules, and subsystems for cloud/AI datacenter and telecom networks, plus industrial lasers and 3D-sensing light sources — has no prohibited lines. Interest-bearing debt of $1.64B (convertible notes $1.54B + Japan term loans $92.8M) is about 1.75% of its ~$93.8B market cap (89.7M shares at the $1,045.78 quote of October 2, 2026), far below the ~33% ceiling. Interest and investment income of $60.2M is about 2.0% of FY2026 revenue ($3.01B), below the 5% non-compliant income limit. Zoya (Shariah-compliant, September 2026) and Musaffa (HALAL, October 2026) both cover the ticker; no ShariaPortfolio rating was found. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

Gate 1 — Business activity: PASS

Lumentum Holdings Inc. (NASDAQ: LITE) is a global provider of optical and photonic products for cloud, AI/ML, telecommunications, consumer, and industrial end markets, operating as a single reportable segment (per the FY2026 10-K). Its Components products — semiconductor laser chips, laser sub-assemblies, line subsystems, and wavelength management systems — go into cloud datacenter and AI infrastructure links and network equipment; its Systems products — optical modules, optical circuit switches, and industrial lasers (short-pulse solid-state, kilowatt-class fiber, diode, and gas lasers) — include 3D-sensing light sources integrated into mobile-device cameras and lasers embedded in machine tools for precision manufacturing. None of the disclosed lines — optical networking, datacenter/AI interconnect, industrial lasers, 3D sensing — are prohibited lines (no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, or adult entertainment). Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

At June 27, 2026 the company's interest-bearing debt was $1,637.4M: convertible notes of $1,544.6M (carrying amount; recorded in current liabilities since all series were convertible in Q1 FY2027 as the stock traded above the 130% conversion triggers) plus $92.8M of Japan term loans ($52.3M short-term, $40.5M long-term), per the FY2026 10-K debt notes. Against a market cap of about $93.8B — 89.7M shares outstanding at August 14, 2026 times the $1,045.78 October 2, 2026 Finnhub quote — debt ÷ market cap is about 1.75%, far below the ~33% ceiling. Cash and cash equivalents ($2,043.5M) plus short-term investments ($694.9M) total about $2.74B, roughly 2.9% of market cap, within the ~33% guideline. The company also raised $2.0B via Series A convertible preferred stock, which sits in stockholders' equity, not debt. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

For fiscal year 2026 (ended June 27, 2026) the 10-K discloses interest and investment income of $60.2M as a combined line within other income, net — earned on money-market funds, treasuries, agency securities, investment-grade fixed-income, CDs, and commercial paper, per the MD&A. Against net revenue of $3,014.0M, that is about 2.0% of revenue, below the 5% non-compliant income limit. Note the headline GAAP net loss of $6.94B is driven by a one-off $7.76B non-cash loss on debt extinguishment — convertible notes converted as the stock soared — not by operations (operating income was $524.8M and operating cash flow $751.4M). Gate 3 passes. Facts only.

Key figures used

Frequently asked questions

What does Lumentum do?

Lumentum Holdings Inc. (NASDAQ: LITE) is a global provider of optical and photonic products for cloud, AI/ML, telecommunications, consumer, and industrial end markets, operating as a single reportable segment. Its Components products (semiconductor laser chips, laser sub-assemblies, line subsystems, wavelength management systems) go into cloud datacenter and AI infrastructure links and network equipment; its Systems products (optical modules, optical circuit switches, industrial lasers) include 3D-sensing light sources for mobile-device cameras and lasers embedded in machine tools for precision manufacturing. None of the disclosed lines are prohibited lines, so the business gate passes.

Why does Lumentum pass this Shariah stock screen?

Lumentum passes all three gates of this Shariah stock screen. Its business has no prohibited lines (optical networking, datacenter/AI interconnect, industrial lasers, 3D sensing). Interest-bearing debt of $1,637.4M is about 1.75% of its ~$93.8B market cap, far below the ~33% ceiling, and cash plus short-term investments (~$2.74B, about 2.9% of market cap) are within the guideline. Interest and investment income of $60.2M is about 2.0% of FY2026 revenue ($3,014.0M), below the 5% non-compliant income limit. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

What is Lumentum's interest-bearing debt ratio?

At June 27, 2026 Lumentum's interest-bearing debt was $1,637.4M — convertible notes of $1,544.6M (carrying amount; recorded in current liabilities since all series were convertible in Q1 FY2027 as the stock traded above the 130% conversion triggers) plus $92.8M of Japan term loans ($52.3M short-term, $40.5M long-term), per the FY2026 10-K debt notes. Against a market cap of about $93.8B (89.7M shares outstanding at August 14, 2026 times the $1,045.78 Finnhub quote of October 2, 2026), debt divided by market cap is about 1.75%, far below the ~33% ceiling. Cash and cash equivalents ($2,043.5M) plus short-term investments ($694.9M) total about $2.74B, roughly 2.9% of market cap, within the ~33% guideline. The financial-structure gate passes.

What is Lumentum's non-compliant income ratio?

For fiscal year 2026 (ended June 27, 2026) the 10-K discloses interest and investment income of $60.2M as a combined line within other income, net — earned on money-market funds, treasuries, agency securities, investment-grade fixed-income, CDs, and commercial paper, per the MD&A. Against net revenue of $3,014.0M, that is about 2.0% of revenue, below the 5% non-compliant income limit. The income gate passes. (The headline GAAP net loss of $6.94B for the year is driven by a one-off $7.76B non-cash loss on debt extinguishment — convertible notes converted as the stock soared — not by operations.)

Do Zoya, Musaffa, or ShariaPortfolio cover Lumentum?

Two of the three do. Zoya covers LITE at zoya.finance/stocks/lite and labels it Shariah-compliant as of September 2026 (AAOIFI methodology). Musaffa covers LITE at musaffa.com/stock/LITE and classifies it HALAL as of October 2026 (AAOIFI methodology). No rating or coverage of Lumentum was found on ShariaPortfolio — honestly reported as absent, not invented. This page applies the screen directly from the company's filings: the FY2026 10-K for the year ended June 27, 2026.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).