Shares of Lumentum Holdings Inc (LITE) surged 18.80% in Wednesday's pre-market trading session following the company's impressive first-quarter fiscal 2026 results and optimistic second-quarter outlook. The optical and photonic products manufacturer reported better-than-expected earnings and revenue, driven by robust demand in key markets.

Lumentum posted adjusted earnings per share of $1.10 for Q1, surpassing analysts' estimates of $1.03. Revenue came in at $533.8 million, exceeding expectations of $525.4 million and representing a substantial 58.4% year-over-year increase. The company's strong performance was attributed to high demand in data centers, data center interconnect, and long-haul segments.

Adding to investor enthusiasm, Lumentum provided an upbeat forecast for the second quarter, projecting revenue between $630 million and $670 million, with non-GAAP diluted earnings per share expected to range from $1.30 to $1.50. This guidance significantly outpaced analyst expectations, prompting several firms to raise their price targets. Notably, Jefferies increased its target price to $250 from $140, while Needham raised its target to $235 from $180, citing the company's strong positioning in high-growth areas such as optical circuit switches, co-packaged optics, and cloud transceivers.