Lumentum (NASDAQ:LITE) Shares Gap Up Following Strong Earnings

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $435.10, but opened at $473.12. Lumentum shares last traded at $484.7160, with a volume of 2,933,764 shares traded.

The technology company reported $1.67 earnings per share for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. The firm had revenue of $665.50 million for the quarter, compared to analysts’ expectations of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The firm’s revenue for the quarter was up 65.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Q2 results beat expectations — EPS and revenue topped estimates, revenue grew ~65% Y/Y and management issued Q3 guidance above Street forecasts, underpinning the rally. LITE Q2 earnings beat (Zacks)
• Positive Sentiment: Citigroup raised its price target to $560 and put a Buy rating on LITE, signaling further upside from analysts keyed to the strong quarter. Citigroup raises LITE PT to $560
• Positive Sentiment: Rosenblatt lifted its target to $580 (Buy), and Mizuho raised its target to $525 (Outperform) — multiple firms boosting targets reinforces bullish professional sentiment. Rosenblatt raises PT to $580 (Benzinga)
• Positive Sentiment: B. Riley and Zacks moved Lumentum toward stronger ratings (B. Riley upgrade; Zacks Rank #1 Strong Buy), adding conviction from sell‑side and quant shops. B. Riley upgrades LITE (MSN)
• Positive Sentiment: Institutional interest noted — Fidelity highlighted Lumentum in its Growth Strategies fund commentary, indicating buy-side recognition of LITE’s growth profile. Fidelity mentions LITE (InsiderMonkey)
• Neutral Sentiment: Bank of America raised its target to $520 but kept a Neutral rating — supportive but less bullish than some peers, reflecting varied analyst assumptions on sustainability of growth. BofA raises PT to $520 (Benzinga)
• Neutral Sentiment: Earnings call and transcripts are available for details on product mix, supply and AI-driven demand; read management commentary for signals on sustainability of the beat. Q2 2026 earnings call transcript (Seeking Alpha)
• Negative Sentiment: One shop (Stifel) set a $480 target — below current levels — which could cap upside if momentum stalls or guidance disappoints. Stifel sets PT $480 (TickerReport)
• Negative Sentiment: Some published targets remain well below the current price (e.g., an earlier $362.94 figure), illustrating dispersion in analyst views and the risk of volatile reactions to any downside surprises. Price target $362.94 (MSN)

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Susquehanna set a $550.00 price target on shares of Lumentum in a report on Wednesday. Raymond James Financial lowered shares of Lumentum from a “strong-buy” rating to an “outperform” rating and set a $220.00 price objective for the company. in a research report on Friday, October 31st. B. Riley raised shares of Lumentum from a “neutral” rating to a “buy” rating and raised their target price for the company from $147.00 to $526.00 in a research note on Wednesday. JPMorgan Chase & Co. lifted their target price on shares of Lumentum from $145.00 to $185.00 and gave the company an “overweight” rating in a report on Thursday, October 16th. Finally, Citigroup increased their price target on Lumentum to $560.00 and gave the company a “buy” rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $423.00.

Insider Activity

In other news, SVP Jae Kim sold 170 shares of the firm’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $246.00, for a total transaction of $41,820.00. Following the completion of the sale, the senior vice president directly owned 38,400 shares in the company, valued at $9,446,400. This trade represents a 0.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Julia Suzanne Johnson sold 10,000 shares of Lumentum stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $270.39, for a total value of $2,703,900.00. Following the sale, the director directly owned 12,037 shares in the company, valued at approximately $3,254,684.43. The trade was a 45.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 17,180 shares of company stock valued at $4,551,380 in the last 90 days. Company insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Hedge funds have recently bought and sold shares of the business. Advisors Asset Management Inc. raised its position in shares of Lumentum by 36.8% in the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock valued at $59,000 after purchasing an additional 254 shares in the last quarter. NewEdge Advisors LLC increased its stake in shares of Lumentum by 109.9% in the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after buying an additional 6,275 shares during the last quarter. Empowered Funds LLC raised its holdings in Lumentum by 9.1% in the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock valued at $507,000 after acquiring an additional 680 shares in the last quarter. Janney Montgomery Scott LLC raised its holdings in Lumentum by 14.1% in the second quarter. Janney Montgomery Scott LLC now owns 19,538 shares of the technology company’s stock valued at $1,857,000 after acquiring an additional 2,409 shares in the last quarter. Finally, KLP Kapitalforvaltning AS boosted its stake in Lumentum by 7.9% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 15,071 shares of the technology company’s stock valued at $1,433,000 after acquiring an additional 1,100 shares during the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

Lumentum Stock Performance

The company’s fifty day simple moving average is $363.15 and its two-hundred day simple moving average is $234.43. The company has a market capitalization of $35.76 billion, a price-to-earnings ratio of 154.73 and a beta of 1.51. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.02 and a current ratio of 0.61.

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.