Lumentum FY2027 EPS Forecast Boosted by Northland Securities

Key Points

• Northland Securities boosted Lumentum's FY2027 EPS forecast to $14.59 from $10.69, well above the current consensus of $5.87, implying materially stronger forward earnings expectations.
• Multiple brokerages raised ratings and price targets — some up to $1,100 — leaving an average analyst price target near $757 and a consensus of "Moderate Buy."
• Lumentum recently beat quarterly estimates with $1.67 EPS and $665.5M revenue (revenue +65.5% YoY), and management says the company is sold out through 2027, supporting the AI-optics and capacity-expansion narrative.

Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) - Research analysts at Northland Securities boosted their FY2027 earnings estimates for shares of Lumentum in a research report issued on Monday, April 20th. Northland Securities analyst T. Savageaux now anticipates that the technology company will earn $14.59 per share for the year, up from their previous forecast of $10.69. The consensus estimate for Lumentum's current full-year earnings is $5.87 per share.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, beating the consensus estimate 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 net margin of 11.95% and a return on equity of 17.27%. The business's revenue was up 65.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS.

Several other brokerages have also recently weighed in on LITE. Zacks Research cut shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. JPMorgan Chase & Co. lifted their price objective on shares of Lumentum to $950.00 and gave the stock an "overweight" rating in a research note on Thursday, April 9th. B. Riley Financial upgraded shares of Lumentum from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $147.00 to $526.00 in a research note on Wednesday, February 4th. Susquehanna lifted their price objective on shares of Lumentum from $550.00 to $1,100.00 and gave the stock a "positive" rating in a research note on Monday. Finally, Mizuho lifted their price objective on shares of Lumentum from $750.00 to $930.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 8th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $757.25.

Lumentum Stock Up 4.4%

Lumentum stock opened at $873.60 on Thursday. The stock has a market cap of $62.38 billion, a P/E ratio of 267.98 and a beta of 1.38. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. Lumentum has a twelve month low of $55.00 and a twelve month high of $960.00. The company's 50-day moving average price is $728.12 and its two-hundred day moving average price is $454.81.

Hedge Funds Weigh In On Lumentum

Hedge funds and other institutional investors have recently made changes to their positions in the company. Hilton Head Capital Partners LLC acquired a new position in shares of Lumentum in the 1st quarter valued at approximately $25,000. EverSource Wealth Advisors LLC grew its holdings in shares of Lumentum by 363.9% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company's stock valued at $27,000 after purchasing an additional 131 shares during the last quarter. V Square Quantitative Management LLC bought a new stake in shares of Lumentum during the 4th quarter valued at approximately $28,000. Truvestments Capital LLC grew its holdings in Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock worth $28,000 after acquiring an additional 57 shares during the last quarter. Finally, Triumph Capital Management bought a new stake in Lumentum during the 4th quarter worth approximately $30,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Penny Herscher sold 4,849 shares of the business's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $535.48, for a total value of $2,596,542.52. Following the completion of the transaction, the director directly owned 6,057 shares in the company, valued at approximately $3,243,402.36. The trade was a 44.46% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Yuen Wupen sold 3,157 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the completion of the transaction, the insider owned 88,439 shares of the company's stock, valued at $47,580,182. The trade was a 3.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 65,775 shares of company stock valued at $38,851,343 over the last quarter. 0.43% of the stock is owned by corporate insiders.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Major broker price-target increases and renewed buy ratings from multiple firms (Citigroup, Needham, Susquehanna, Morgan Stanley) lift investor sentiment by implying materially higher fair-value expectations. Citigroup $1,100 PT Needham $1,040 PT Susquehanna $1,100 PT Morgan Stanley PT
• Positive Sentiment: Northland Securities materially raised FY/quarterly EPS forecasts for Lumentum (stronger forward earnings expectations can support higher multiples). Northland estimates
• Positive Sentiment: Company commentary and press coverage point to very strong demand — CEO said the business is sold out through 2027, supporting visibility for revenue and capacity expansion plans. Sold out through 2027
• Positive Sentiment: Market narrative shifting toward AI optics and larger customer commitments (including Nvidia-related demand), which increases the growth story beyond telecom optics. Analysts and coverage pieces highlight capacity expansion and index inclusion as catalysts. AI optics narrative Zacks on AI networking
• Neutral Sentiment: Market commentary and trade-flow stories note growing momentum and investor confidence, but these are narrative drivers that still depend on execution and capacity ramp timing. Momentum coverage
• Negative Sentiment: Tradr launched a first-to-market 2x inverse ETF on Lumentum Cboe: LITZ and announced inverse/leveraged products — these make it easier and cheaper for traders to bet against LITE and could add volatility or downside pressure if used aggressively. Tradr 2X Short LITE (LITZ) Tradr launch notice

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.

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