LITE

Lumentum Holdings Inc. (NASDAQ:LITE) is one of the Top 10 Stocks That Will Profit from AI. The company is a critical provider of high-speed optical interconnects and laser technologies required to connect AI clusters in massive data centers. On May 7, 2026, Barclays raised the firm’s price target on Lumentum Holdings Inc. (NASDAQ:LITE) from $750 to $1,000. The firm’s analyst Tom O’Malley kept an Equal Weight rating on the company’s stock. The adjustment follows the Q3 2026 earnings report released on May 5, 2026, in which the company highlighted 90% year-over-year revenue growth to $808.4 million, driven primarily by transceiver and laser chip growth. According to Tom O’Malley’s research note, the company has a clearer line of sight to $25 in earnings per share in 2027. In another recent development, on May 11, 2026, Lumentum Holdings Inc. (NASDAQ:LITE) announced its inclusion in the Nasdaq-100 Index, marking a significant milestone in the company’s journey. The inclusion is expected to be made formal on May 18, 2026, before the market opens. Michael Hurlston, President and CEO at Lumentum Holdings Inc. (NASDAQ:LITE), believes that the inclusion will improve the company’s visibility with global investors. Founded in 1979, Lumentum Holdings Inc. (NASDAQ:LITE) provides optical and photonic products. It operates through two segments: Cloud and Networking, which deals with optical and photonic components, modules, and subsystems, and Industrial Tech, which includes solid-state lasers, kilowatt-class fiber lasers, ultrafast lasers, diode lasers, and gas lasers. While we acknowledge the potential of LITE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Harvard University Stock Portfolio: Top 10 Stock Picks and 10 Best Battery Technology Stocks to Buy Now Disclosure: None. Follow Insider Monkey on Google News.

Lumentum Holdings’ LITE shares have gained 6.1% since the company reported third-quarter fiscal 2026 results on May 5, driven by robust AI- and cloud-related demand. Revenues surged 90.1% year over year to $808 million, while non-GAAP earnings jumped to $2.37 per share from 57 cents in the year-ago quarter. Both top and bottom lines exceeded analysts’ expectations. Revenues beat the Zacks Consensus Estimate by 0.37%, while earnings surpassed the consensus mark by 5.8%. Lumentum’s strong quarterly performance was primarily driven by accelerating demand for AI infrastructure and cloud networking products. Growth was particularly strong in EML laser chips, cloud transceivers and scale-across networking components. The company also benefited from improving product mix, pricing discipline and stronger operating leverage, which significantly boosted margins during the quarter. For the fourth quarter of fiscal 2026, Lumentum expects revenues between $960 million and $1.01 billion. The company guided non-GAAP operating margin to 35-36% and non-GAAP earnings to $2.85-$3.05 per share, based on an effective tax rate assumption of 16.5% and approximately 102 million diluted shares. Management indicated that transceivers are expected to be a major driver of sequential growth, supported by the ramp of 1.6T shipments in the fiscal fourth quarter. The company also expects continued progress in integrating internal CW lasers into its module portfolio. Management noted that nearly 20% of modules in the near-term mix could incorporate Lumentum’s own CW lasers, alongside ongoing yield improvements and lower scrap rates, which are expected to support profitability. The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is currently pegged at $986.69 million, indicating more than 100% year-over-year growth. The consensus estimate for earnings is pegged at $2.69 per share, up 3.5% over the past 30 days. Analyst sentiment also remains favorable for the longer term. Earnings estimates for fiscal 2026 and fiscal 2027 have increased 2.1% and 11.4%, respectively, over the past 30 days, reflecting optimism surrounding Lumentum’s expanding AI- and cloud-driven growth opportunities. Image Source: Zacks Investment Research Lumentum is benefiting significantly from robust AI and cloud infrastructure demand, which is driving strong adoption of its optical and photonic technolog...

The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.19%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.29%. June E-mini S&P futures (ESM26) rose +0.18%, and June E-mini Nasdaq futures (NQM26) rose +0.28%. Stock indexes settled higher on Monday, with the S&P 500 and Nasdaq 10 posting new all-time highs amid strong corporate earnings results and resurgent optimism around artificial intelligence. Strength in chipmakers and AI-infrastructure stocks led the broader market higher on Monday. Gains in stocks were limited on Monday amid rising oil prices and bond yields after the US and Iran failed to reach terms to end the war in the Middle East. Global bond yields rose on concern that the continued standoff will keep energy prices elevated and could force the world’s central banks to tighten monetary policy. The 10-year T-note yield rose +5 bp to 4.41%. Dear D-Wave Quantum Stock Fans, Mark Your Calendars for May 12 Berkshire Hathaway Just Upped Its Stake in Sumitomo Stock. Greg Abel Says It’s Holding for the Long Term. This Analyst Just Raised the Price Target on Coherent Stock by 50%. What to Know. Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! In the latest developments in the Middle East, President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. Iran offered to transfer some of its stockpile of highly enriched uranium to a third country, but rejected the idea of dismantling its nuclear facilities. Iran also demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through the Strait of Hormuz. Despite the ceasefire in place since last month, a drone strike over the weekend set a cargo vessel ablaze off Qatar in the Persian Gulf. Also, the United Arab Emirates and Kuwait both said they intercepted hostile drones. Monday’s US economic news was slightly weaker than expected after Apr existing home sales rose +0.2% m/m to 4.02 million, below expectations of 4.05 million. Chinese trade news was better than expected, a positive factor for global growth. China Apr exports rose +14.1% y/y, stronger than expectations of +8.4% y/y. Apr imports rose +25.3% y/y, stro...

The S&P 500 Index ($SPX) (SPY) today is up +0.25%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.17%. June E-mini S&P futures (ESM26) are up +0.29%, and June E-mini Nasdaq futures (NQM26) are up +0.19%. Stock indexes are moving higher today, with the S&P 500 and Nasdaq 100 posting new all-time highs amid strong corporate earnings results and resurgent optimism around artificial intelligence. Gains in stocks are limited today amid rising oil prices and bond yields after the US and Iran failed to reach terms to end the war in the Middle East. Global bond yields rose on concern that the continued standoff will keep energy prices elevated and could force the world’s central banks to tighten monetary policy. The 10-year T-note yield is up +3 bp to 4.39%. Broadcom Hits a Bottleneck as OpenAI Revenue Concerns Claim Their First Casualty Dan Ives Can’t Make It Any Clearer: Palantir Stock Is Still a ‘Golden Goose’ Despite Q1 Earnings Fears Palantir Stock Has a ‘High-Class Problem’: Demand for Its Software Is Far Outpacing Supply Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. In the latest developments in the Middle East, President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. Iran offered to transfer some of its stockpile of highly enriched uranium to a third country, but rejected the idea of dismantling its nuclear facilities. Iran also demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through the Strait of Hormuz. Despite the ceasefire in place since last month, a drone strike over the weekend set a cargo vessel ablaze off Qatar in the Persian Gulf. Also, the United Arab Emirates and Kuwait both said they intercepted hostile drones. Today’s US economic news was slightly weaker than expected after Apr existing home sales rose +0.2% m/m to 4.02 million, below expectations of 4.05 million. Chinese trade news was better than expected, a positive factor for global growth. China Apr exports rose +14.1% y/y, stronger than expectations of +8.4% y/y. Apr imports rose +25.3% y/y, stronger than expectations of 20.0% y/y. WTI crude oil prices (CLM26) are up by more than 2% today, as optimism that the US an...

The S&P 500 Index ($SPX) (SPY) today is up +0.17%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.10%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.06%. June E-mini S&P futures (ESM26) are up +0.19%, and June E-mini Nasdaq futures (NQM26) are up +0.05%. Stock indexes are moving higher today, with the S&P 500 and Nasdaq 10 posting new all-time highs amid strong corporate earnings results and resurgent optimism around artificial intelligence. Gains in stocks are limited today amid rising oil prices and bond yields after the US and Iran failed to reach terms to end the war in the Middle East. Global bond yields rose on concern that the continued standoff will keep energy prices elevated and could force the world’s central banks to tighten monetary policy. The 10-year T-note yield is up +3 bp to 4.39%. Broadcom Hits a Bottleneck as OpenAI Revenue Concerns Claim Their First Casualty Palantir Stock Has a ‘High-Class Problem’: Demand for Its Software Is Far Outpacing Supply Dan Ives Can’t Make It Any Clearer: Palantir Stock Is Still a ‘Golden Goose’ Despite Q1 Earnings Fears Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. In the latest developments in the Middle East, President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. Iran offered to transfer some of its stockpile of highly enriched uranium to a third country but rejected the idea of dismantling its nuclear facilities. Iran also demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through the Strait of Hormuz. Despite the ceasefire in place since last month, a drone strike over the weekend set a cargo vessel ablaze off Qatar in the Persian Gulf. Also, the United Arab Emirates and Kuwait both said they intercepted hostile drones. Chinese trade news was better than expected, a positive factor for global growth. China Apr exports rose +14.1% y/y, stronger than expectations of +8.4% y/y. Apr imports rose +25.3% y/y, stronger than expectations of 20.0% y/y. WTI crude oil prices (CLM26) are up by more than 2% today, as optimism that the US and Iran would reopen the Strait of Hormuz was dashed after President Trump said Iran's latest peace proposals were "totally unacceptable." The strait remains essentially closed, as abo...

Lumentum Holdings LITE shares have dropped 5.1% to close at $944.28 on May 6, following the third-quarter fiscal 2026 results announced on Tuesday. The company delivered non-GAAP earnings of $2.37 per share, which beat the Zacks Consensus Estimate by 5.8% and surged significantly from 57 cents reported in the year-ago quarter. Revenues of $808 million increased 90.1% year over year and edged past expectations by 0.37%. The quarter’s results reflected strong cloud and AI demand, with components revenue reaching $533.3 million (66% of total sales), supported by momentum in laser chips and “scale-across” products that management highlighted as an important margin lever. Systems revenues were $275.1 million, rising 121.1% year over year and 24% sequentially. Management said cloud transceivers accounted for the majority of the segment’s growth as Lumentum leveraged an expanded manufacturing footprint in Thailand. Optical circuit switches also contributed, with management describing a multi-year, multibillion-dollar purchase agreement as a foundation for long-term growth. However, the company noted that supply-chain tightness remains a gating factor for the pace of the ramp, especially given a step-up in requested output. Lumentum Holdings Inc. price-consensus-eps-surprise-chart | Lumentum Holdings Inc. Quote Lumentum emphasized that its “scale-across” portfolio is becoming more material as hyperscalers link compute domains across distributed data center architectures. Management called out pump lasers and narrow linewidth laser assemblies as key building blocks for these networks, with the latter providing the precision needed for higher-speed coherent links. Operationally, the company posted strong shipment trends across core components. Narrow-linewidth laser assemblies grew more than 120% year over year, while pump laser shipments increased 80%, reflecting demand for higher-bandwidth networking and optical amplification. Management also pointed to new company records in EML shipments, driven by 100-gig lane speeds, with 200-gig EML revenue more than doubling sequentially. Non-GAAP gross margin was 47.9%, up 540 basis points (bps) sequentially and significantly expanded from 35.2% reported in the year-ago quarter. Management attributed the improvement to better factory utilization, selective pricing actions and a more favorable mix, with strength in data center...

Lumentum shares fall after the optical networking giant reported fiscal third-quarter earnings, narrowly missing lofty revenue expectations.

Coherent reported quarterly earnings that were in-line with Wall Street’s expectations, with gross margins increasing slightly. The optical networking company is benefiting from the artificial intelligence data center boom—but shares fell anyway. Coherent posted adjusted earnings of $1.41 a share for the fiscal third-quarter, compared to 91 cents a year ago and Wall Street’s $1.40 a share prediction.

Net revenue of $808.4 million GAAP gross margin of 44.2%; Non-GAAP gross margin of 47.9% GAAP operating margin of 21.6%; Non-GAAP operating margin of 32.2% GAAP diluted net income per share of $1.50; Non-GAAP diluted net income per share of $2.37 SAN JOSE, Calif., May 05, 2026--(BUSINESS WIRE)--Lumentum Holdings Inc. ("Lumentum" or the "Company") today reported results for its fiscal third quarter ended March 28, 2026. "Lumentum delivered an exceptional third quarter, with revenue growing 90% year over year to a record $808 million. While our top line growth continues to garner headlines, the more impressive part of our recent performance has been our margin expansion. In fiscal Q3, gross margin improved by 540 basis points on quarter and operating margin by 700 basis points," said President and CEO Michael Hurlston. "Margin improvement has been driven by many factors including operational rigor, pricing discipline, and product mix. This quarter, mix was aided by strength in laser chips, but also by a less-heralded part of our portfolio, ‘scale-across’ components, which include our pump lasers and narrow linewidth laser assemblies. As our key growth drivers of co-packaged optics and optical circuit switches begin to kick in, we would expect further increases in earnings power." Fiscal Third Quarter Highlights: Net revenue for the third quarter of fiscal year 2026 was $808.4 million, with GAAP net income of $144.2 million, or $1.50 per diluted share. Net revenue for the second quarter of fiscal year 2026 was 665.5 million, with GAAP net income of $78.2 million, or $0.89 per diluted share. Net revenue for the third quarter of fiscal year 2025 was 425.2 million, with GAAP net loss of $44.1 million, or $0.64 per diluted share. Non-GAAP net income for the third quarter of fiscal year 2026 was $225.7 million, or $2.37 per diluted share. Non-GAAP net income for the second quarter of fiscal year 2026 was $143.9 million, or $1.67 per diluted share. Non-GAAP net income for the third quarter of fiscal year 2025 was $40.9 million, or $0.57 per diluted share. The Company held $3,172.3 million in total cash, cash equivalents, and short-term investments at the end of the third quarter of fiscal year 2026, up $2,017.0 million from the end of the second quarter of fiscal year 2026 primarily due to the proceeds from the issuance of Series A Convertible Preferred Stock in Marc...

SAN JOSE, Calif. (AP) — SAN JOSE, Calif. (AP) — Lumentum Holdings Inc. (LITE) on Tuesday reported fiscal third-quarter net income of $142.5 million. The San Jose, California-based company said it had profit of $1.50 per share. Earnings, adjusted for one-time gains and costs, came to $2.37 per share. The results exceeded Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $2.24 per share. The optical networking products maker posted revenue of $808.4 million in the period, also topping Street forecasts. Six analysts surveyed by Zacks expected $805.4 million. For the current quarter ending in June, Lumentum expects its per-share earnings to range from $2.85 to $3.05. The company said it expects revenue in the range of $960 million to $1.01 billion for the fiscal fourth quarter. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on LITE at https://www.zacks.com/ap/LITE

Futures rose. President Trump "paused" his Hormuz opening effort. AI plays AMD, Astera Labs, Lumentum, Arista were earnings movers late.

May 5 (Reuters) - Lumentum Holdings forecast quarterly revenue above Wall Street expectations on Tuesday, ‌betting on strong demand for its high-speed ‌optical components that are crucial for artificial intelligence infrastructure. • The company has been a beneficiary of massive capital spending by cloud giants on AI infrastructure. Its equipment is critical for transmitting vast amounts of data ‌at high speeds ⁠between servers in data center networks. • Lumentum designs and makes photonic products, including ⁠high performance lasers and optical components. • It expects revenue between $960 million and $1.01 billion in the fourth quarter, compared with analysts' average estimate of $908.3 million, according ‌to data compiled by LSEG. • Adjusted profit is expected to be between $2.85 and $3.05 per share. Analysts expect $2.68 per share. • Analysts have said that strong demand is outstripping supply for critical components like ‌lasers, with customers entering into longer-term agreements to secure their supply. • The results come after Lumentum was added to ‌the S&P 500 in March. • In the third quarter, revenue rose 90.1% to $808.4 million, beating estimates of $804.3 million. The company reported an adjusted profit ‌of $2.37 per share, compared with estimates of $2.29 per share. (Reporting by Anhata Rooprai in Bengaluru; Editing by Sahal Muhammed)