Lumentum (NASDAQ:LITE) Issues Earnings Results

Lumentum (NASDAQ:LITE) announced its earnings results on Tuesday. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.24 by $0.13, FiscalAI reports. The company had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.05 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The firm’s quarterly revenue was up 90.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.57 earnings per share. Lumentum updated its Q4 2026 guidance to 2.850-3.050 EPS.

Here are the key takeaways from Lumentum’s conference call:

• Lumentum delivered a record quarter with $808 million revenue (+90% YoY) and a strong non?GAAP operating margin of 32.2%, driven by transceivers and laser chips.
• The company is materially supply?constrained — EMLs, pump lasers and narrow?linewidth lasers are effectively sold out with a supply?demand gap >30%, forcing allocation choices that cap near?term shipments.
• Q4 guidance targets another record (revenue $960M–$1.01B, midpoint $985M) and 35%–36% non?GAAP operating margin, with transceiver ramps (including 1.6T and partial insourcing of CW lasers) expected to drive the bulk of sequential growth.
• Lumentum is investing in long?term capacity (acquired Greensboro InP fab, CPO/ultra?high?power laser ramps and multi?rail/scale?across products) that should expand margins and address demand, but Greensboro capacity won’t materially contribute until 2028.

Lumentum Trading Up 1.9%

Shares of NASDAQ:LITE traded up $18.38 during trading on Tuesday, reaching $994.56. The stock had a trading volume of 6,328,268 shares, compared to its average volume of 5,510,206. The business has a fifty day moving average price of $766.66 and a 200-day moving average price of $492.31. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The stock has a market cap of $71.01 billion, a P/E ratio of 305.08 and a beta of 1.53. Lumentum has a fifty-two week low of $60.38 and a fifty-two week high of $1,021.00.

Insider Activity at Lumentum

In related news, insider Vincent Retort sold 45,026 shares of the company’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $591.32, for a total transaction of $26,624,774.32. Following the completion of the transaction, the insider owned 102,455 shares of the company’s stock, valued at approximately $60,583,690.60. This represents a 30.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Wajid Ali sold 5,302 shares of the company’s stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the transaction, the chief financial officer directly owned 66,287 shares of the company’s stock, valued at $45,812,934.31. This trade represents a 7.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 65,775 shares of company stock worth $38,851,343. 0.43% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lumentum

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Compound Planning Inc. acquired a new position in Lumentum during the fourth quarter worth approximately $694,000. Axxcess Wealth Management LLC acquired a new position in Lumentum during the fourth quarter worth approximately $3,669,000. Corient Private Wealth LLC increased its position in Lumentum by 52.1% during the fourth quarter. Corient Private Wealth LLC now owns 4,089 shares of the technology company’s stock worth $1,507,000 after purchasing an additional 1,400 shares during the last quarter. Alberta Investment Management Corp acquired a new position in Lumentum during the fourth quarter worth approximately $5,713,000. Finally, Mercer Global Advisors Inc. ADV acquired a new position in Lumentum during the fourth quarter worth approximately $4,415,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have issued reports on LITE shares. Mizuho lifted their target price on shares of Lumentum from $750.00 to $930.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 8th. Bank of America lifted their target price on shares of Lumentum to $520.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 4th. TD Cowen lifted their target price on shares of Lumentum from $675.00 to $875.00 and gave the stock a “hold” rating in a research report on Friday, April 10th. Barclays boosted their price objective on shares of Lumentum to $750.00 and gave the company an “equal weight” rating in a research report on Tuesday, March 3rd. Finally, Morgan Stanley boosted their price objective on shares of Lumentum from $595.00 to $710.00 and gave the company an “equal weight” rating in a research report on Monday, April 20th. Twelve research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $812.71.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Earnings beat and big y/y profit improvement — Lumentum reported $2.37 EPS vs. the $2.24 consensus and compared with $0.57 a year ago, driven by 90% revenue growth; this confirms stronger AI/data-center demand. Lumentum (LITE) Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Raised guidance — Lumentum updated Q4 FY2026 EPS guidance to $2.85–$3.05 versus a consensus of $2.59, signaling management expects continued momentum. Know When To Hold ‘Em And When To Fold ‘Em
• Positive Sentiment: Analyst price-target increases — Stifel raised its PT to $1,100 (buy) and Loop Capital boosted its PT to $1,400 (buy), providing fresh analyst support that can attract demand. Stifel adjusts price target on Lumentum Loop Capital adjusts PT on Lumentum
• Positive Sentiment: Bullish media/celebrity endorsement — Jim Cramer named Lumentum among stocks he’d buy ahead of earnings, which can spur retail interest. Jim Cramer Shows Bullish Sentiment as He Says He Would “Buy Lumentum”
• Neutral Sentiment: Revenue slightly below consensus — revenue was $808.4M vs. consensus $810.05M; underlying demand signals remain strong but this small miss tempers the beat. Lumentum quarterly report and call
• Neutral Sentiment: High prior run and market attention — pieces noting Lumentum’s ~1,444% YTD surge and positioning ahead of earnings highlight elevated expectations and greater volatility going forward. Does Lumentum’s 1,444% Surge Come to an End Tomorrow?
• Neutral Sentiment: Institutional/strategic interest signals — copy-trading/hedge-fund activity has surfaced in coverage, which can add flows but also follow-on volatility. This copy-trading portfolio soared 60% in two months

About Lumentum

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.