LITE

- Lumentum guided fiscal Q1 revenue to $1.225 billion to $1.275 billion, about 23% above Q4's $1.01 billion, with non-GAAP operating margin near 40%. - CEO Michael Hurlston told Bloomberg Television that Lumentum's AI optical components are "completely sold out" through early 2029. - At 39.1x forward earnings, Lumentum is the priciest major AI optics name, and new laser capacity takes about three years to reach customers. - The November 5 report will test whether supply additions can keep pace with demand and support that steep revenue ramp. Few companies can say they have nothing left to sell for three years. Lumentum (LITE:NASDAQ) can. CEO Michael Hurlston told Bloomberg Television in Tokyo that the company's optical components are "completely sold out" through early 2029. Six months earlier, he had pointed to 2028. The stock rose 3.4% to $851 on October 21 and is up 120% this year. Still, shares sit 26% below their $1,143 high as AI hardware stocks cooled through October. The tension is simple. Lumentum has more demand than it can serve, so every quarter now depends on how fast its fabs can grow. Fiscal Q4 revenue rose 109% to $1.01 billion, up from $480.7 million a year earlier. Non-GAAP EPS of $3.23 beat the $2.97 consensus. The guide was even louder: - Q1 fiscal 2027 revenue of $1.225 billion to $1.275 billion, about 23% sequential growth at the midpoint. - Non-GAAP operating margin of 39.5% to 40.5%, up from 36.6% in Q4. - Non-GAAP EPS of $4.05 to $4.35. That trajectory looks like this. Revenue more than doubled in a year, and the guide implies another big step. For comparison, Coherent (COHR:NYSE) guided to a $2.3 billion Q1 midpoint, about 12% sequential growth from a much bigger base. One accounting note: Lumentum posted a $7.2 billion GAAP net loss in Q4 because equitizing convertible notes triggered a one-time, non-cash $7.8 billion loss. It did not touch operations, but it explains the negative trailing P/E. When customers cannot get enough product, pricing tilts toward the seller. Hurlston said Lumentum cannot meet roughly 70% of demand for some products through next year and about 30% for certain others through 2028. Customers are already placing orders for 2030. Lumentum added a fab in Greensboro, North Carolina, and is expanding a second fab in Japan. Its Tokyo-area output has grown twelvefold in two years. Where does that pricing power show up? Non-GAAP gross margin hit 50.4% in Q4, and the Q1 guide suggests operating leverage is still building. The product mix helps too. Record 800G transceiver shipments, early 1.6T production and optical circuit switches are driving cloud revenue. At the OCP Global Summit, Lumentum also demonstrated PCIe-over-optics rack connectivity with Astera Labs (ALAB:NASDAQ) and Corning (GLW:NYSE). TIKR tracks 26 analysts on Lumentum. How many say "Buy"? See the full breakdown of Buy, Hold, and Sell ratings on Lumentum, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Lumentum's Analyst Ratings Scarcity cuts both ways. Hurlston warned that new laser capacity takes about three years to reach customers, so relief may not arrive until 2029 or 2030. Any yield stumble now hits revenue directly. Investors are paying up for that visibility, and the multiple stands apart from peers. Lumentum trades at 39.1x forward earnings, versus 25.3x for Coherent and 25.0x for Credo (CRDO:NASDAQ). Its 82.4% forward two-year revenue CAGR is the fastest of the three, so the premium has a basis. Insider selling adds a wrinkle. CFO Ali Wajid sold 24,542 shares for about $25.7 million in early October. My take: Lumentum has the cleanest demand story in AI optics, and a 40% operating margin guide shows it is turning scarcity into profit. But a 39x multiple leaves little room for a capacity delay or a hyperscaler pause. I would rather own it on execution proof than on the sold-out headline. The November 5 report is the test. Watch whether revenue clears $1.25 billion and whether management pulls new capacity forward. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what Lumentum could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Value LITE for free.

- Coherent (COHR) and Applied Optoelectronics (AAOI) lead AI optics losses, sinking 12% and 10% as a chipmaker-driven selloff accelerates ahead of earnings. - LYTE's 10% drop dwarfs QQQ's 2% decline, exposing how concentrated AI optics exposure amplifies sector-wide tech selling. - Lumentum CEO Michael Hurlston said datacenter optical components are sold out for years, yet strong demand hasn't prevented a 9% share drop. - Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor) Optical networking stocks that powered the AI data-center trade this year are falling fast, and the selling is landing on the group's biggest names at once. Coherent (NYSE:COHR) stock is trading at $209.82, down 12% in afternoon trading, showing how quickly momentum in AI optics has reversed. Selling extends across the AI connectivity supply chain, from laser chips to finished transceiver modules. Meanwhile, Applied Optoelectronics (NASDAQ:AAOI) stock is at $69.30, down 10%, a slide that lands just behind Coherent's loss. Lumentum Holdings (NASDAQ:LITE) stock is at $770.53, down 9%. That marks a smaller decline than Coherent and Applied Optoelectronics posted, though still a steep loss for a name that climbed on AI optical demand. Each of these companies sells optical parts that move data inside AI datacenters, so shifts in sentiment toward hyperscaler spending tend to hit Coherent, Applied Optoelectronics and Lumentum shares together. The Roundhill Photonics & Optics ETF (CBOE:LYTE) is down 10%, falling nearly as hard as Coherent, Applied Optoelectronics and Lumentum. Over in large-cap tech, the Invesco QQQ Trust (NASDAQ:QQQ) is down 2%, representing a far softer retreat for the NASDAQ 100 benchmark. That gap marks the optics selling as group-wide caution before Coherent, Applied Optoelectronics and Lumentum report quarterly results. ------ Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years. That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here › ------ Technology stocks are falling broadly, led by chipmakers, and the optics group is extending a slide that has erased much of its earlier gains, and Coherent, Applied Optoelectronics and Lumentum shares all remain higher for the year, a reminder of how far the group ran before this pullback took hold. Quarterly reports from Coherent, Applied Optoelectronics and Lumentum arrive in the coming weeks, and the selling reflects caution before those numbers land. Lumentum Chief Executive Officer Michael Hurlston stated earlier this month that the company's data center optical components are sold out for years. That demand background hasn't shielded Lumentum shares from the chip-led selling, and Coherent and Applied Optoelectronics shares are sliding right alongside, as strong order books and falling share prices can coexist when a group has rallied hard and the broader technology sector turns lower. Coherent has an industrial laser business. That gives it a wider product mix than a pure-play datacenter optics supplier, though Coherent shares are trading in lockstep with AI optics names during this selloff. The company's role in the transition from copper to optical connectivity in AI datacenters remains the heart of the bullish case. Applied Optoelectronics depends on a small group of large customers. Vertical integration from laser chips and subassemblies through finished optical modules gives the company closer control over supply, but a delay from a single customer can weigh hard on results. Growth projects at Lumentum span optical circuit switching, cloud modules and ultra-high-power co-packaged optics lasers, all tied to rising AI bandwidth needs. A sold-out order book supports the bullish case but raises the bar for execution, since constrained output could cap revenue growth. Roundhill's LYTE photonics fund counts Lumentum and Coherent among its largest holdings. That concentration explains why the fund is sliding almost in step with Lumentum and Coherent. The coming reports from Coherent, Lumentum and Applied Optoelectronics will show whether capacity is keeping pace with demand. For Applied Optoelectronics, the open variable is order timing from its large customers. Lumentum's management needs to show that sold-out demand is turning into higher shipments. Until those reports arrive, investors weighing their exposure should adjust their holdings carefully given that Coherent, Applied Optoelectronics and Lumentum shares may keep trading in step with the chip sector's swings. (Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here › Contact [email protected] for any questions or corrections.

- Applied Optoelectronics, Lumentum, and Coherent rallied Monday as traders positioned ahead of early November earnings reports focused on AI optical demand. - Lumentum CEO Michael Hurlston stated the company is sold out through 2029 and cannot meet 70% of demand for some products through 2027. - Coherent's PhotonLink integrated optics platform already has 10-plus customer engagements, with initial revenue expected to ramp in the December quarter. - Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Coherent didn't make the cut. Enter your email to see the names that beat COHR. The report is free. Enter your email and see if any of your stocks made the cut. Applied Optoelectronics (NASDAQ:AAOI) stock jumped 5% to $79.01 on Monday as optics names advanced ahead of upcoming earnings reports. Lumentum (NASDAQ:LITE) shares rose 4% to $856.18, while Coherent (NYSE:COHR) stock climbed 2% to $236.93. The group found support from anticipation surrounding results due in early November and continued interest in AI-driven optical demand. The Roundhill Photonics & Optics ETF (BATS:LYTE) advanced 2% to $20.20. Broader markets also moved higher, with the SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) up 0.56% to $767.49. Applied Optoelectronics and Lumentum are scheduled to report earnings on November 5, and Coherent is set to report on November 4, keeping near-term focus on guidance and order trends. Applied Optoelectronics shares led the session's gains among the three. The company supplies optical components used in data-center and communications applications that have benefited from rising bandwidth needs. Traders positioned ahead of the November 5 report, watching for updates on AI-related optical demand and capacity utilization. Lumentum stock also posted a solid advance. CEO Michael Hurlston recently noted that Lumentum's components are sold out through 2029 and that the company cannot meet roughly 70% of demand for some products through 2027 and 30% for others through 2028. Those comments have reinforced the view that optical connectivity remains a bottleneck in AI infrastructure buildouts. ------ Free Report, Just Released Why Didn't COHR Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And COHR didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → ------ Coherent stock rose more modestly. The company has launched its PhotonLink integrated optics platform designed for co-packaged optics, near-packaged optics, and chip-to-chip connectivity. Coherent already has more than 10 customer engagements in these areas, with initial PhotonLink revenue expected to ramp in the December quarter. Coherent can benefit from existing high-speed optical transceiver demand even if broader co-packaged optics adoption takes longer than expected. One analyst recently reiterated a Buy rating with a $395 price target, pointing to opportunities in both current products and newer technologies. Valuation remains elevated relative to historical averages, leaving limited room for disappointment. The Roundhill Photonics & Optics ETF's gain reflected measured interest across the specialty group. Photonic integrated circuits are seeing rapid expansion tied to high-speed data transmission and energy-efficient optical technologies for AI data centers. Market forecasts point to strong compound annual growth rates through the end of the decade as cloud and hyperscale operators scale optical infrastructure. Similarities among Applied Optoelectronics, Lumentum, and Coherent include exposure to AI networking demand and optical components for data centers. Differences appear in product focus and scale, with Lumentum highlighting multiyear sold-out conditions, Coherent emphasizing integrated platforms, and Applied Optoelectronics concentrating on specific optical modules. The broader chip sector has also shown signs of stabilizing after a recent soft stretch. Upcoming earnings will provide the next major checkpoints for order visibility and margin trends across the three companies. Lumentum's multiyear capacity constraints and Coherent's PhotonLink ramp offer potential catalysts if demand remains robust. Applied Optoelectronics faces similar questions around AI optical adoption and competitive positioning. Investors should consider keeping their position sizes modest given the volatility typical of optics and photonics stocks. Stronger-than-expected guidance or further evidence of sold-out conditions could support the shares, while any signs of softer demand or elevated valuations may pressure the group after the recent run. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And COHR wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->> Contact [email protected] for any questions or corrections.

Anthropic is offering Blackstone a yield above 10% to fund a massive AI chip buildout, a sign that the easy money phase of artificial intelligence is giving way to businesses that must earn their keep. High borrowing costs punish cash burners and reward companies already turning AI spending into profits. This article highlights three profitable AI players from our screener that show how that shift is playing out. The three profitable AI stocks below are just a small sample from our work, and the full screen surfaced 35 more businesses with equally compelling stories that are not covered here. If you want to move straight from headlines to hard data, head into the Profitable AI Stocks screener to identify, analyze, and focus on the AI earners that best fit your approach. Lumentum Holdings is one of the more direct ways to play AI infrastructure, because its optical chips and high-speed modules carry the data that AI workloads depend on, yet the group still runs a broader photonics business that is not purely tied to this cycle. "If training‑cluster buildout peaks and inference networking does not fill the gap, revenue growth could decelerate sharply." What happens to Lumentum's earnings power hinges on how one unresolved shift in AI data center buying patterns plays out. That hinge point is exactly what the full narrative for Lumentum Holdings unpacks, showing where Lumentum could still accelerate if AI demand and its broader photonics engine move on separate paths. Ibiden is an electronics and ceramics manufacturer best known to AI investors for its printed circuit boards and IC package substrates used in GPUs and MPUs for high performance servers. Electronics bring in ¥264,602 million, Ceramics ¥87,929 million and Others ¥107,516 million. The company's market value sits around ¥5,457.5b. Ibiden turns AI server demand into real earnings through high value IC substrates and PCBs that feed directly into GPUs and MPUs for high performance servers, rather than relying on blue sky promises. Recent guidance points to stronger profits supported by AI related substrates and disciplined capacity use. What happens when substrate demand or pricing shift will decide how durable those AI cash flows are. Those shifts in substrates and pricing are exactly what 2 key rewards and 2 important warning signs (1 is major!) to show where Ibiden's AI earnings engine could accelerate or stall next. Infomart runs B2B e-commerce platforms in Japan that digitize ordering, invoicing, contracts, and store operations, with its AI-OCR invox tool using AI to turn faxes and PDFs into usable data. B to B-PF FOOD generates about ¥12,405 million, B to B-PF ES around ¥7,400 million, and the group is valued near ¥206.3 billion. Infomart fits the Profitable AI Stocks theme because invox turns routine paperwork into paid automation, helping customers cut manual work while Infomart collects recurring fees. Strong earnings growth and rising margins are part of the current AI earner story, while the valuation places focus on how profitability expectations may align with future execution on those AI workflows. That valuation tension is exactly why the analysis report for Infomart could be worth your time if you want to see what expectations might be missing. Fresh ideas do not stay under the radar for long. Once momentum hits, ideal entry points can get caught and start dropping fast. Scan new angles and act now. - Target steadier compounding potential by reviewing a curated 8 dividend fortresses that focus on income strength while it still flies under the radar for now. - Hunt for truly resilient balance sheets by running the list of solid balance sheet and fundamentals (25 results) before the crowd starts pricing in that financial strength and narrows your window. - Chase early-stage upside in AI infrastructure through the curated 55 AI infrastructure stocks while it matters and pricing still reflects today's expectations, not tomorrow's momentum. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

San Jose, California-based Lumentum Holdings Inc. (LITE), with a market capitalization of approximately $81.2 billion, is a global photonics technology company. It develops and manufactures lasers, optical modules, and subsystems that enable AI infrastructure, cloud data centers, telecommunications networks, industrial manufacturing, and advanced sensing applications, focusing on high-performance, energy-efficient connectivity. LITE is set to report its Q1 fiscal 2027 earnings on Thursday, November 5, 2026, after the market closes. Ahead of the release, analysts expect the company to report diluted EPS of $3.82, up 536.7% from $0.60 in the year-ago quarter. Moreover, LITE has exceeded Wall Street's EPS estimates in each of the past four quarters, highlighting its consistent earnings performance. - Bill Gates Says Despite Elon Musk Being Mean to Him, He's Still 'In Awe' of His Work — 'He's Brilliant, He's Rich, He's Influential' - 'I Can Support My Family By Working Three Days A Week': Jeff Bezos Says Al Gains Will Be So Big Families Won't Need 2 Full-Time Earners - At 97, Charlie Munger Borrowed $37 Million to Go All-In on Alibaba — 2 Years Later He Called It One of the 'Worst Mistakes' of His Life - Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For fiscal 2027, analysts expect LITE to report EPS of $19.79, representing a 143.4% increase from $8.13 in fiscal 2025. EPS is projected to increase another 67.2% year over year to $33.08 in fiscal 2028. LITE stock has skyrocketed 455.4% over the past 52 weeks, substantially outperforming the S&P 500 Index ($SPX), which returned 16.1%, and the State Street Technology Select Sector SPDR ETF (XLK), which climbed 33.1% over the same period. Lumentum's outperformance over the past year has been driven by surging AI-related demand for optical connectivity, triple-digit revenue growth, and improving profitability. On August 11, the company reported fiscal Q4 2026 revenue exceeding $1 billion for the first time, up 109% year over year, while adjusted EPS of $3.23 surpassed the high end of its guidance. Growing demand for AI data center connectivity is boosting sales of its optical components and switching solutions, with optical circuit switch shipments doubling sequentially. Additionally, Lumentum's strong fiscal Q1 2027 revenue and earnings guidance reinforced its growth outlook. Following the announcement, LITE shares surged 13.6% in the next trading session. Analysts remain bullish on LITE, with the stock carrying a consensus "Strong Buy" rating. Of the 25 analysts covering the stock, 18 recommend a "Strong Buy," two rate it a "Moderate Buy," and five recommend a "Hold." Meanwhile, LITE's average price target of $1,167 implies a 34.2% premium over the current share price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

LITE designs and manufactures optical and photonic products for cloud computing, optical networking, and laser applications, with its products being key parts of data centers, telecom, and enterprise networks worldwide. The company's fourth-quarter fiscal 2026 report showed a record $1.01 billion in quarterly revenue (a 109% year-over-year gain), non-GAAP net income of $326.3 million or $3.23 per share (a 267% gain), as well as first-quarter 2027 revenue and EPS guidance of up to $1.275 billion and $4.35, respectively. No wonder LITE shares are up 207% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock. Institutional volumes reveal plenty. In the last year, LITE has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in LITE shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of technology names are under accumulation right now. But there's a powerful fundamental story happening with Lumentum. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, LITE has had strong sales growth: - 1-year sales growth rate (+83.2%) - 3-year sales growth rate (+27.1%) Source: FactSet Also, EPS is estimated to ramp higher this year by +58.9%. Now it makes sense why the stock has been generating Big Money interest. LITE has a track record of strong financial performance. Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term. Lumentum recently became a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. The stock has drawn eight Big Money outlier inflow signals since 2016, rising 2,948% since the first one. The blue bar below shows when LITE was an institutional target…the buying continues: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The LITE action isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in LITE at the time of publication. If you are a Registered Investment Advisor (RIA) or a serious investor, take your investing to the next level. MoneyFlows created 11 Frontiers indexes to help serious investors capture AI-driven themes and learn the leading stocks in each Frontier. Get started here. This article was originally posted on FX Empire - Ethereum Price Prediction: Risk of a Pullback to $2,400 Increases as Volumes Drop - US Dollar Price Forecast: DXY Holds Firm Ahead of NFP, Can GBP/USD and EUR/USD Recover? - Record Earnings Drive Lumentum Shares to New Highs - Huge Sales and Earnings Growth Send Vicor Shares Higher - Dogecoin Price Risks 20% Dip as Memecoin Dominance Hits Record Low - ZEC Price Warning: Technicals Point to Potential 30% Zcash Pullback

Forgent Power Solutions, Inc. FPS reported fourth-quarter fiscal 2026 adjusted earnings of 25 cents per share, which beat the Zacks Consensus Estimate by 8.7%. Revenues of $462 million rose 94% year over year. Growth was led by custom products and Powertrain Solutions for data center customers. Backlog reached a record $3 billion. Powertrain Solutions revenues climbed 187% year over year to $147 million, while custom products revenues rose 73% to $292 million. Services revenues increased 69% to $12 million, and standard products revenues advanced 3% to $11 million. Management said the quarterly growth was fully organic, supported by market expansion, share gains and a faster-than-expected production ramp at new facilities. Powertrain Solutions accounted for nearly one-third of quarterly revenues. Forgent Power Solutions, Inc. price-consensus-eps-surprise-chart | Forgent Power Solutions, Inc. Quote Fourth-quarter bookings reached a record $1.50 billion, up 375% year over year and 73% sequentially. The book-to-bill ratio increased to 3.3x from 2.3x in the third quarter, marking the highest level in the company's history. Backlog increased 256% year over year and 53% sequentially to $3.02 billion. Management said backlog consists of firm purchase orders rather than letters of intent or memoranda of understanding, with pricing remaining broadly consistent. Gross profit rose 109% to $166.70 million. Adjusted EBITDA increased 163% year over year to $112.74 million. The adjusted EBITDA margin reached 24.4%, expanding 640 basis points year over year and 200 basis points sequentially as higher volumes improved operating leverage. Cash flow from operations was $74 million, while capital expenditures totaled $31 million. Most quarterly capital spending is related to the 2025-2026 capacity expansion. FPS received its first direct order from a frontier AI lab during the quarter and signed a master service agreement with a hyperscaler. The initial AI-lab award covers medium-voltage transformers and switchgear for a campus expected to exceed one gigawatt. Management also highlighted broader wallet-share gains as existing customers increasingly buy multiple product lines and integrated solutions. Powertrain Solutions represented about 40% of year-end backlog, while service backlog was approximately three times fiscal 2026 service revenues. Forgent announced a $35 million investment in a dedicated 385,000-square-foot Powertrain Solutions facility at its Tijuana campus. The project is expected to increase Powertrain Solutions manufacturing capacity by more than 50% and come online in the fourth quarter of fiscal 2027. The expansion is expected to raise total revenue capacity to approximately $5.8 billion, an increase of about $800 million. Management said modular solutions are becoming a larger part of customer deployment plans, supporting the decision to add capacity beyond the recently completed expansion. For fiscal 2027, Forgent expects revenues of $2.4-$2.6 billion, adjusted EBITDA of $575-$625 million and adjusted earnings of $1.26-$1.40 per share. At the midpoint, these ranges imply revenue growth of 76%, adjusted EBITDA growth of 86% and adjusted earnings growth of about 95%. For the first quarter of fiscal 2027, FPS projects revenues of $445-$465 million and adjusted EBITDA of $90-$100 million. The quarter is expected to include about $10 million of one-time hiring, training and startup costs. Management expects quarterly revenues and adjusted EBITDA to rise sequentially through fiscal 2027, with operating cash flow exceeding $300 million and capital expenditures totaling about $87 million. At present, FPS carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum LITE, Applied Materials AMAT and Analog Devices ADI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Shares of Lumentum have surged 127.8% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2027 earnings is pegged at $21.30 per share, up by 3 cents over the past 30 days, indicating an increase of 145.7% year over year. Shares of Applied Materials have jumped 63.9% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.76 per share, up by 1.3% over the past 30 days, indicating a rise of 35.5% year over year. Analog Devices shares have risen 33.6% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.96 per share, up by 4.3% cents over the past 30 days, indicating an increase of 66.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Forgent Power Solutions, Inc. (FPS) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Lumentum (LITE). Shares have added about 6.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Lumentum due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Lumentum reported fourth-quarter fiscal 2026 non-GAAP earnings of $3.23 per share, which rose 267% year over year and beat the Zacks Consensus Estimate by 8.03%.Revenues surged 109.3% year over year to $1.01 billion and topped the consensus mark by 1.79%. Cloud and artificial intelligence (AI) demand fueled growth, while the company began shipping 1.6T transceivers and posted record cloud transceiver shipments. Components revenues were $649.4 million, up 21.8% sequentially and 102.7% year over year. Strength came from scale-out and scale-across products, with record shipments of 100G and 200G Electro-Absorption Modulated Laser (EMLs).The 200G EML portfolio accounted for more than 25% of total EML revenues. Narrow linewidth laser assemblies grew for the 10th straight quarter and more than 130% year over year, while pump laser shipments increased more than 80%. Lumentum expects demand for EML and Continuous-Wave (CW) lasers to grow significantly through the second half of calendar 2026 and into 2027. Systems revenues reached $356.9 million, rising 29.7% sequentially and 122.6% year over year. Cloud transceivers and Optical Circuit Switching (OCS) were the main sequential growth drivers, with factories executing against aggressive production plans despite pockets of component supply tightness.Most cloud transceiver shipments remained at 800G speeds, while Lumentum started shipping 1.6T products as planned. Management expects 1.6T adoption to intensify in the first quarter of fiscal 2027 and continue through 2027. Transceiver profitability improved on better yields, higher capacity utilization and the initial rollout of higher-priced 1.6T products. Management said pump lasers remain effectively sold out despite rapid capacity expansion. The company expects a fourfold increase in pump laser shipments over the next several quarters and has secured multiple long-term customer agreements that help offset planned capital spending for scale-across deployments.For OCS, Lumentum doubled shipments from the third quarter to the fourth quarter and expects its first quarter of fiscal 2027 to deliver its first triple-digit OCS revenue quarter. The company is adding internal and contract-manufacturing capacity. Ultra-high-power laser demand has accelerated, with management targeting roughly $50 million of quarterly revenues by the end of calendar 2026. Non-GAAP gross margin was 50.4%, up 250 basis points (bps) sequentially and 1,260 bps from 37.8% reported in the year-ago quarter. Management attributed the improvement to better manufacturing utilization, favorable product mix and increased pricing on select products.Non-GAAP operating expenses were $138.1 million, up 26.3% year over year, representing 13.7% of revenues. The increase reflected continued investment in research and development programs supporting cloud and AI customers while the company maintained tight cost controls.Profitability translated into strong operating leverage. Non-GAAP operating margin expanded to 36.6%, up 440 bps sequentially and 2,160 bps from 15.0% in the year-ago quarter. Non-GAAP operating profit reached $368.8 million. Lumentum spent $167 million on capital expenditures during the quarter, primarily to expand manufacturing capacity for cloud and AI customers. Inventories increased $59 million sequentially as the company prepared for expected growth in related revenues.Capacity additions span multiple product lines. LITE is expanding its two indium phosphide wafer fabs in Japan to support EML and continuous-wave laser demand. The company is increasing internal and contract-manufacturing capacity for OCS as customer demand strengthens. Ultra-high-power laser revenues are expected to build toward roughly $50 million per quarter by the end of calendar 2026. Lumentum ended the fiscal fourth quarter with $2.74 billion in cash and short-term investments, down $433.9 million sequentially. Management said the decline was primarily driven by convertible debt conversions. The company reduced convertible debt by $1.1 billion, or roughly 35% of outstanding convertible debt, through the equitization of certain notes.Working capital excluding cash, short-term investments and short-term debt was $539.9 million, down from $596.7 million in the prior quarter. Inventories increased by $59 million sequentially as Lumentum prepared for expected growth in cloud- and AI-related revenues, while capital expenditures totaled $167 million and were primarily directed toward manufacturing capacity expansion. For the first quarter of fiscal 2027, Lumentum expects revenues to be between $1.225 billion and $1.275 billion. The $1.25 billion midpoint implies more than 130% year-over-year growth and would mark another quarterly revenue record. Management expects roughly half of sequential growth to come from components and the balance from systems.Non-GAAP operating margin is projected at 39.5%-40.5%, while non-GAAP earnings are expected between $4.05 and $4.35 per share. It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 19.15% due to these changes. At this time, Lumentum has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Lumentum has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Lumentum is part of the Zacks Communication - Components industry. Over the past month, Corning (GLW), a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended June 2026 more than a month ago. Corning reported revenues of $4.74 billion in the last reported quarter, representing a year-over-year change of +17.1%. EPS of $0.78 for the same period compares with $0.60 a year ago. Corning is expected to post earnings of $0.88 per share for the current quarter, representing a year-over-year change of +31.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Corning has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report Corning Incorporated (GLW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research