New York, Jan 21, 2026, 11:43 (EST) — Regular session
- Lumentum shares climbed roughly 5% late morning, fueled by upbeat analyst recommendations.
- Aletheia Capital raised its price target to $500 from $330, pointing to increased demand for high-speed optical components.
- Attention now turns to the company’s earnings report on Feb. 3 and any revisions to its outlook.
Lumentum Holdings Inc shares climbed roughly 5% to $374.52 in late-morning trading Wednesday, pushing higher after a strong rally. Aletheia Capital boosted its price target on the optical components maker’s stock from $330 to $500, according to Investing.com. (Investing)
This shift is significant since investors have viewed Lumentum as a quick barometer for spending on high-speed connections within data centers, where operators increasingly rely on optics to transfer data among chips, servers, and switches.
Lumentum plans to release its fiscal second-quarter results on Feb. 3 after markets close and will hold a webcast at 5 p.m. ET, the company announced. Volatility in the stock this month has heightened anticipation for the update. (Lumentum Investor Relations)
Aletheia analyst Skye Chen raised his price target to $500, citing “significantly stronger EML demand” as the key driver behind the earnings upgrade. EML, or electro-absorption modulated lasers, power high-speed optical transceivers. Chen highlighted 800-gigabit switch upgrades, improved pricing, and a quicker transition to 200G SerDes (serializer-deserializer) components. He also downplayed risks related to indium-phosphide substrate supply. His earnings estimates jumped 20% to 40%, the report noted. (Streetinsider)
Lumentum surged over 10% Tuesday, closing at $356.83, recovering from a slump earlier this month following a massive 339% rally in 2025, according to Investors.com. The stock reached a 52-week intraday peak of $402.79 on Jan. 7, the report said. (Investors)
In November, Lumentum posted fiscal Q1 revenue of $533.8 million and non-GAAP earnings of $1.10 per share. The company projected Q2 revenue between $630 million and $670 million, with non-GAAP EPS ranging from $1.30 to $1.50. CEO Michael Hurlston highlighted the “strong momentum across data center, data center interconnect, and long-haul markets” reflected in both the results and guidance. (Lumentum Investor Relations)
Shares of other optical players climbed as well—Coherent surged roughly 7%, while IPG Photonics gained close to 4%. On the flip side, networking equipment producer Ciena fell about 2%.
Lumentum’s strong performance has also exposed it to risks tied to shifts in AI-related capital spending or changes in pricing expectations. In its latest quarterly filing, the company highlighted concerns over tariffs and export controls, cautioning that limits on key materials might drive up costs and curb production. (SEC)
Lumentum is set to release its earnings after the close on Feb. 3. Investors will be focused on any updates to the company’s guidance and clues about demand stability as the March quarter approaches. (Nasdaq)
