Lumentum (NASDAQ:LITE) Releases 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 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.

Lumentum Trading Up 0.9%

Shares of Lumentum stock opened at $820.59 on Wednesday. The stock has a market capitalization of $63.84 billion, a PE ratio of 151.96 and a beta of 1.50. Lumentum has a 52 week low of $111.20 and a 52 week high of $1,085.68. The stock has a 50 day moving average price of $809.23 and a two-hundred day moving average price of $763.39. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same period in the prior year, the firm earned $0.88 earnings per share. Lumentum’s revenue for the quarter was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities analysts anticipate that Lumentum will post 6.42 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages have commented on LITE. Barclays boosted their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 6th. Stifel Nicolaus lifted their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Bank of America reissued a “neutral” rating on shares of Lumentum in a research report on Wednesday. TD Cowen decreased their target price on shares of Lumentum from $995.00 to $800.00 and set a “hold” rating for the company in a research report on Monday, July 13th. Finally, Citigroup reissued a “buy” rating on shares of Lumentum in a report on Thursday, July 16th. Fourteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and a consensus target price of $1,012.67.

Insider Activity

In other news, Director Ian Small sold 4,954 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total value of $4,300,418.78. Following the transaction, the director owned 21,008 shares in the company, valued at $18,236,414.56. The trade was a 19.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Wajid Ali sold 2,487 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $2,372,473.65. Following the completion of the transaction, the chief financial officer owned 60,951 shares in the company, valued at $58,144,206.45. The trade was a 3.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last 90 days, insiders have sold 23,827 shares of company stock worth $22,051,069. Corporate insiders own 0.43% of the company’s stock.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Earnings and revenue beat estimates: Fiscal Q4 revenue rose 109% year over year to approximately $1.01 billion, exceeding consensus near $988 million. Adjusted EPS reached $3.23 versus estimates of about $2.97–$2.99, representing a substantial increase from $0.88 a year earlier. Lumentum stock surges 8% after earnings as Nvidia bet starts paying off
• Positive Sentiment: Exceptional forward guidance: Lumentum forecast fiscal Q1 2027 adjusted EPS of $4.05–$4.35, well above the roughly $3.55 analyst consensus, with revenue projected at approximately $1.23–$1.27 billion. The outlook suggests that accelerating demand is continuing into the new fiscal year. Lumentum: Strike While The Iron Is Hot
• Positive Sentiment: AI infrastructure remains a key growth driver: Management and analysts highlighted increasing data-center adoption of optical links as AI networks expand and connectivity shifts from copper to optical technology. Non-GAAP gross margin also surpassed 50% ahead of schedule, supporting profit growth. Lumentum Beats Q4 Estimates: CEO Says Data Centers Turn Increasingly to Optical Links
• Neutral Sentiment: Valuation remains a risk: After a substantial longer-term rally, LITE trades at an elevated earnings multiple, leaving the stock vulnerable to profit-taking or disappointment if AI-related growth slows. Investors had already pressured AI-optics shares ahead of the report. Lumentum stock: Is the valuation too rich heading into Q4 results?

Institutional Investors Weigh In On Lumentum

Several large investors have recently made changes to their positions in the business. Compound Planning Inc. bought a new stake in Lumentum in the fourth quarter worth about $694,000. Axxcess Wealth Management LLC bought a new stake in shares of Lumentum in the 4th quarter worth approximately $3,669,000. Corient Private Wealth LLC lifted its stake in Lumentum by 52.1% in the fourth quarter. Corient Private Wealth LLC now owns 4,089 shares of the technology company’s stock valued at $1,507,000 after purchasing an additional 1,400 shares during the last quarter. Alberta Investment Management Corp purchased a new position in Lumentum in the fourth quarter valued at approximately $5,713,000. Finally, Mercer Global Advisors Inc. ADV bought a new position in Lumentum during the fourth quarter valued at $4,415,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

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.