Lumentum Holdings Inc. (LITE) shares surged 5.05% in pre-market trading on Wednesday, following the company's impressive fourth-quarter financial results and a wave of analyst upgrades. The optical and photonic products provider demonstrated strong performance, beating expectations and providing an optimistic outlook.

Lumentum reported a profit in its fiscal fourth quarter, with adjusted earnings of 88 cents per share surpassing analysts' estimates of 81 cents. Revenue for the period jumped 56% to $480.7 million, exceeding expectations of $470.5 million. The company's performance was driven by robust demand for its AI data center and long-haul solutions.

Following the earnings release, multiple analysts raised their price targets for Lumentum. Barclays increased its target to $135 from $75, while JP Morgan raised it to $145 from $123. Jefferies, UBS, and Needham also boosted their price targets, reflecting growing confidence in the company's prospects. Lumentum's management expressed optimism, stating they expect "continued strong demand" and are confident in surpassing $600 million in quarterly revenue by June 2026 or earlier.