Lumentum (NASDAQ:LITE) Updates Q1 2027 Earnings Guidance

Lumentum (NASDAQ:LITE) updated its first quarter 2027 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 4.050-4.350 for the period, compared to the consensus EPS estimate of 3.550. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.2 billion.

Analysts Set New Price Targets

Several brokerages have commented on LITE. Weiss Ratings cut shares of Lumentum from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, August 5th. BNP Paribas Exane increased their price objective on shares of Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. Morgan Stanley raised their target price on shares of Lumentum from $900.00 to $1,000.00 and gave the stock an “equal weight” rating in a report on Wednesday. Jefferies Financial Group restated a “buy” rating and set a $1,200.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Finally, Raymond James Financial reaffirmed an “outperform” rating and issued a $1,036.00 price target on shares of Lumentum in a report on Wednesday. Fourteen analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, Lumentum presently has an average rating of “Moderate Buy” and a consensus target price of $1,044.67.

Lumentum Trading Up 13.6%

Shares of NASDAQ:LITE opened at $932.47 on Thursday. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. Lumentum has a 12-month low of $111.20 and a 12-month high of $1,085.68. The business has a 50 day moving average of $809.12 and a two-hundred day moving average of $767.46. The company has a market capitalization of $72.55 billion, a PE ratio of -11.34 and a beta of 1.50.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping analysts’ consensus estimates of $2.97 by $0.26. The business had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 39.69%. The business’s revenue was up 109.3% on a year-over-year basis. During the same quarter last year, the company earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, analysts forecast that Lumentum will post 16.67 EPS for the current year.

Insider Activity at Lumentum

In related news, insider Vincent Retort sold 3,183 shares of the firm’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the sale, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. This trade represents a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the transaction, the director directly owned 21,008 shares of the company’s stock, valued at $18,236,414.56. The trade was a 19.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 22,250 shares of company stock valued at $20,468,739 in the last quarter. 0.43% of the stock is currently owned by insiders.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Strong earnings beat: Lumentum reported adjusted EPS of $3.23, above the roughly $2.97–$2.99 consensus, while revenue reached $1.01 billion versus estimates near $988 million. Revenue increased 109% year over year, driven by cloud, AI and optical-connectivity demand. LITE Q4 Earnings Beat as AI Demand Drives Optical Growth Surge
• Positive Sentiment: Powerful forward guidance: Fiscal first-quarter 2027 EPS guidance of $4.05–$4.35 is well above the approximately $3.55 analyst estimate. Revenue guidance of about $1.2–$1.3 billion also signals continued rapid growth. Lumentum: Strike While The Iron Is Hot
• Positive Sentiment: AI product momentum is broadening: Management highlighted record optical-transceiver shipments, the beginning of 1.6T shipments, and ramps in optical circuit switching, NPO, CPO-related products, continuous-wave lasers and pump lasers. Gross margin reached 50.4%, ahead of the company’s prior expectations. Lumentum Q4 Earnings Call Focuses on AI Optics, OCS & NPO Ramps
• Positive Sentiment: Analyst support increased: JPMorgan raised its price target to $1,280 while maintaining an overweight rating, and Rosenblatt reiterated its buy rating with a $1,300 target. The upgrades reflect expectations for sustained AI infrastructure spending and future co-packaged-optics growth. Lumentum soars after strong Q4 keeps analysts largely positive
• Neutral Sentiment: Valuation and expectations remain important: Although analysts are broadly positive, some remain cautious after Lumentum’s extended rally and want clearer evidence that newer products, particularly NPO, can sustain growth. This creates the potential for volatility if AI-related capital spending slows or execution disappoints. Analysts Conflicted on These Technology Names

Institutional Trading of Lumentum

A number of institutional investors and hedge funds have recently made changes to their positions in LITE. Arrowstreet Capital Limited Partnership lifted its position in shares of Lumentum by 8,579.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock valued at $254,350,000 after buying an additional 1,545,199 shares in the last quarter. Value Aligned Research Advisors LLC acquired a new position in Lumentum during the fourth quarter worth $432,062,000. Voloridge Investment Management LLC raised its position in Lumentum by 107.5% during the third quarter. Voloridge Investment Management LLC now owns 644,194 shares of the technology company’s stock worth $104,817,000 after acquiring an additional 333,734 shares during the period. Northern Trust Corp lifted its holdings in Lumentum by 1.7% during the third quarter. Northern Trust Corp now owns 578,117 shares of the technology company’s stock valued at $94,065,000 after purchasing an additional 9,580 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its holdings in Lumentum by 66.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 499,612 shares of the technology company’s stock valued at $184,153,000 after purchasing an additional 199,726 shares in the last quarter. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum Company Profile

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.