By Nate Wolf
Shares of the laser maker Lumentum Holdings spiked Wednesday after the company posted strong earnings and an even stronger outlook.
Lumentum reported earnings of $1.10 a share for its fiscal first quarter, ahead of Wall Street's call for $1.03. Revenue totaled $533.8 million, up 58% from last year and surpassing analysts' consensus estimate of $526.5 million.
The stock was up 26% on Wednesday, making it the top performer in the S&P Mid Cap 400 and putting it on track for the largest single-day jump on record, according to Dow Jones Market Data. Shares are up more than 180% this year.
The company, which provides components for telecommunications and data-center networks, continues to bounce back from a dismal stretch earlier in the decade. Lumentum saw its net income tumble from $397.3 million in fiscal 2021 to a loss of $546.5 million in 2024. But the company appears to be back on track after returning to a profit in 2025 and guiding a blockbuster 2026.
Following the strong quarter, Lumentum forecast second-quarter revenue between $630 million and $670 million and adjusted earnings of $1.30 to $1.50 a share. Analysts had expected $561 million in revenue and earnings of $1.17 a share. Investors can thank artificial-intelligence data centers.
"Our first-quarter results and forward guidance underscore our strong momentum across data center, data center interconnect, and long-haul markets," said CEO Michael Hurlston in a statement. "With our broad optical portfolio, we are well positioned to support the rapid expansion of AI compute."
Twelve analysts polled by FactSet boosted their target prices for Lumentum stock after the earnings report. More than 70% of Wall Street firms rate shares a Buy or equivalent.
Write to Nate Wolf at nate.wolf@barrons.com
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November 05, 2025 13:16 ET (18:16 GMT)
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