Is LITE (Lumentum Holdings Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, LITE is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (4.62% vs ≤33% threshold), interest income ratio (2.09% vs ≤5% threshold), and cash & securities ratio (1.55% vs ≤33% threshold).

Lumentum Holdings Inc. is a leading manufacturer of optical and photonic products used globally in telecommunications and enterprise networks. The company operates through two main segments, providing essential fiber optic transmission components like tunable transceivers, as well as commercial lasers for manufacturing and inspection. For Muslim investors, LITE represents a clean, Halal investment opportunity under AAOIFI guidelines. The stock successfully passed all four compliance screens, meaning its core business operations and financial structure firmly align with Islamic finance principles. From a financial perspective, Lumentum boasts a highly conservative balance sheet that appeals to halal investors. Its debt-to-market cap sits at an impressive 4.6%, far below the 33% limit, while interest-bearing income is kept minimal at just 2.09% of total revenue. While the stock is currently fully compliant, investors should continue to monitor the company's interest income and debt levels in future quarterly earnings reports. Any significant shift in corporate debt strategy or cash management could impact its compliance status down the line. Lumentum Holdings Inc. operates in the Technology sector under the Communication Equipment industry and is headquartered in San Jose, CA, US. The company is led by CEO Michael E. Hurlston and employs approximately 7,257 people.

LITE was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. LITE passed 4 of these 4 screens.

Although LITE passes all shariah screens, it does earn $34.4M in interest income (2.09% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $2.09 to purify the income.

LITE was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.