Lumentum FY2026 EPS Estimate Lifted by Northland Securities

Key Points

• Northland Securities raised its FY2026 EPS estimate for Lumentum to $6.23 from $5.50, above the current consensus of $5.96 per share. The firm also projected Q4 2026 EPS of $2.59.
• Lumentum beat quarterly earnings expectations, reporting $2.37 EPS versus the $2.27 forecast, while revenue rose 90.1% year over year to $808.4 million. The company also issued Q4 2026 guidance of $2.85 to $3.05 EPS.
• Analyst sentiment remains broadly positive, with multiple firms raising price targets and the stock carrying an average “Moderate Buy” rating. Meanwhile, the shares were noted as trading down 5.8% on the day despite the upbeat estimates.

Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) - Analysts at Northland Securities upped their FY2026 earnings estimates for shares of Lumentum in a research note issued to investors on Wednesday, May 6th. Northland Securities analyst T. Savageaux now forecasts that the technology company will earn $6.23 per share for the year, up from their prior estimate of $5.50. The consensus estimate for Lumentum's current full-year earnings is $5.96 per share. Northland Securities also issued estimates for Lumentum's Q4 2026 earnings at $2.59 EPS.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. During the same period in the prior year, the business posted $0.57 EPS. The company's quarterly revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS.

A number of other research firms also recently commented on LITE. Loop Capital increased their price objective on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Zacks Research downgraded shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Citic Securities increased their price objective on shares of Lumentum from $620.00 to $1,186.00 in a research note on Monday. Needham & Company LLC increased their price objective on shares of Lumentum from $880.00 to $1,040.00 and gave the stock a "buy" rating in a research note on Tuesday, April 21st. Finally, UBS Group increased their price objective on shares of Lumentum from $455.00 to $960.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Thirteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $1,012.43.

Lumentum Trading Down 5.8%

Lumentum stock opened at $992.37 on Wednesday. The firm has a 50-day moving average of $793.08 and a 200-day moving average of $520.30. Lumentum has a one year low of $71.04 and a one year high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The company has a market cap of $77.21 billion, a price-to-earnings ratio of 183.77 and a beta of 1.53.

Insiders Place Their Bets

In other Lumentum news, SVP Jae Kim sold 1,933 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $950.99, for a total transaction of $1,838,263.67. Following the completion of the sale, the senior vice president directly owned 35,114 shares in the company, valued at $33,393,062.86. This trade represents a 5.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 3,441 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total transaction of $1,878,028.98. Following the sale, the insider owned 95,975 shares of the company's stock, valued at $52,381,235.50. This trade represents a 3.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 78,359 shares of company stock worth $53,062,952 in the last three months. Insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Lumentum

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in Lumentum by 0.6% during the third quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company's stock worth $1,217,930,000 after acquiring an additional 41,975 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position in Lumentum by 18.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock worth $683,661,000 after acquiring an additional 291,591 shares during the last quarter. Geode Capital Management LLC lifted its position in Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after acquiring an additional 123,265 shares during the last quarter. Situational Awareness LP lifted its position in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after acquiring an additional 880,800 shares during the last quarter. Finally, Norges Bank acquired a new stake in Lumentum during the fourth quarter worth approximately $474,495,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum was added to the Nasdaq-100, a major milestone that is likely boosting demand from index-tracking funds and traders betting on continued AI infrastructure momentum. Lumentum Joins the Nasdaq-100 Index®, Achieving New Milestone in Global Growth
• Positive Sentiment: Recent earnings showed revenue growth of 90% year over year, with results and guidance reinforcing the bull case that AI and optical networking demand remain very strong. Lumentum Stock Rises 6% After Q3 Earnings: Should You Hold or Fold?
• Positive Sentiment: Analysts have turned more upbeat, with Northland Securities raising FY2027 EPS estimates and Citic Securities lifting its price target to $1,186, signaling improving long-term earnings expectations. Citic Securities adjusts price target on Lumentum
• Neutral Sentiment: Several recent articles say the stock’s rapid run has left investors debating whether it is now expensive after a sharp year-to-date surge.
• Neutral Sentiment: There is also evidence of insider selling by senior executives and directors, but the transactions were made under pre-arranged 10b5-1 plans, which makes them less alarming than discretionary selling. Lumentum NASDAQ: LITE SVP Sells $1,838,263.67 in Stock

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.

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