New York, Jan 21, 2026, 11:43 (EST) — Regular session
- Lumentum shares jumped about 5% late this morning, driven by positive analyst calls.
- Aletheia Capital bumped up its price target to $500 from $330, citing stronger demand for high-speed optical components.
- All eyes are on the company’s earnings report set for Feb. 3 and whether it tweaks its outlook.
Lumentum Holdings Inc shares rose about 5% to $374.52 in late-morning trading Wednesday, extending a solid rally. Aletheia Capital raised its price target for the optical components maker from $330 to $500, according to Investing.com. 1
This change matters because investors often treat Lumentum as a fast gauge of spending on high-speed data center connections, where optics play a growing role in moving data between chips, servers, and switches.
Lumentum said it will report fiscal second-quarter results on Feb. 3, right after the market closes, followed by a webcast at 5 p.m. ET. The stock’s recent swings have investors on edge ahead of the announcement. 2
Aletheia analyst Skye Chen bumped his price target to $500, pointing to “significantly stronger EML demand” as the main reason for the earnings boost. EML, or electro-absorption modulated lasers, are key components in high-speed optical transceivers. Chen emphasized upgrades to 800-gigabit switches, better pricing, and a faster shift to 200G SerDes (serializer-deserializer) parts. He also dismissed concerns over indium-phosphide substrate supply. His earnings estimates surged between 20% and 40%, the report said. 3
Lumentum jumped more than 10% Tuesday to close at $356.83, bouncing back after a dip earlier this month. The stock had skyrocketed 339% in 2025, according to Investors.com. It hit a 52-week intraday high of $402.79 on Jan. 7, the report noted. 4
In November, Lumentum reported fiscal Q1 revenue of $533.8 million and non-GAAP earnings of $1.10 per share. The company expects Q2 revenue to land between $630 million and $670 million, with non-GAAP EPS forecasted in the $1.30 to $1.50 range. CEO Michael Hurlston pointed to “strong momentum across data center, data center interconnect, and long-haul markets” as driving both the results and the outlook. 5
Other optical stocks also saw gains—Coherent jumped nearly 7%, and IPG Photonics added around 4%. Meanwhile, networking gear maker Ciena dropped about 2%.
Lumentum’s solid results have brought risks linked to fluctuations in AI-driven capital expenditure and pricing outlooks into focus. The company flagged worries about tariffs and export controls in its most recent quarterly filing, warning that restrictions on crucial materials could push costs higher and slow output. 6
Lumentum plans to report earnings after the market closes on Feb. 3. Investors will watch closely for any changes to the company’s guidance and signs of demand stability heading into the March quarter. 7
