Lumentum Stock Skyrockets 700% in a Year: Is It Still a Buy?
LITE's 700% rally has been fueled by AI and cloud demand, but strong fundamentals and optical networking growth keep its buy case intact.
Zacks Investment Research7/7/2026Positive
LITE
Lumentum Holdings IncNASDAQTECHNOLOGYCOMMUNICATION EQUIPMENT
Key Statistics
Market Cap
$55.69B
P/E Ratio
126.46
EPS
$5.66
Beta
1.48
52W High
$1085.68
52W Low
$90.98
50-Day MA
$892.27
200-Day MA
$548.40
Dividend Yield
—
Profit Margin
17.70%
Forward P/E
42.73
PEG Ratio
0.63
About Lumentum Holdings Inc
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
Fundamentals
| Revenue (TTM) | $2.49B |
| Gross Profit (TTM) | $1.02B |
| EBITDA | $508.80M |
| Operating Margin | 21.80% |
| Return on Equity | 22.80% |
| Return on Assets | 2.89% |
| Revenue/Share (TTM) | $35.22 |
| Book Value | $41.47 |
| Price-to-Book | 19.06 |
| Price-to-Sales (TTM) | 22.38 |
| EV/Revenue | 22.83 |
| EV/EBITDA | 102.87 |
| Quarterly Earnings Growth (YoY) | 71.10% |
| Quarterly Revenue Growth (YoY) | 90.10% |
| Shares Outstanding | $77.80M |
| Float | $71.18M |
| % Insiders | 0.77% |
| % Institutions | 105.89% |
Historical Volatility
HV 10-Day
72.87%
HV 20-Day
80.51%
HV 30-Day
88.70%
HV 60-Day
89.40%
HV Rank
41.7%
Volatility is currently contracting
Analyst Ratings
Consensus ($1111.29 target)
4
Strong Buy15
Buy5
HoldLatest News
LITE Expands Co-Packaged Optics: Can It Become the Next Growth Driver?
Lumentum is expanding its CPO portfolio as AI infrastructure demand rises, with commercial deployments expected to support revenue and earnings growth.
Zacks Investment Research7/7/2026Positive
Lumentum: The Market Is Counting Lasers While The Business Model Changes Underneath It
Lumentum (LITE) is evolving from a component supplier to a full system provider, moving up the optical stack and expanding its value proposition. I rate LITE a buy with 15-20% upside, targeting an implied price of $845.66 based on premium industry positioning and margin expansion. LITE's sales CAGR (83.8% vs 23.1% peers, '25-'27) and margin growth support its premium valuation, solidifying its role in datacenter infrastructure.
Seeking Alpha7/7/2026Positive
Nvidia CEO Jensen Huang Highlighted a New AI Bottleneck. 3 AI Stocks That Could Benefit.
One of the new congestion points in AI is the speed at which data can be transferred. Nvidia has been aggressively investing in companies that could offer a solution.
The Motley Fool7/6/2026Positive
Applied Optoelectronics Plunges 17%, Coherent and Lumentum Sink 10% as Photonics Stocks Reset
Shares of high-flying photonics names are sliding at midday Thursday. Applied Optoelectronics (NASDAQ:AAOI) stock is down 17% to $114.93, the biggest decliner in the group and easily the sharpest single-session drop of the three.
24/7 Wall Street7/2/2026Neutral
Lumentum's Component Business Accelerates: More Upside Ahead?
LITE's Components segment hit record revenues as AI data-center demand fuels laser shipments, margins and 2026 growth plans.
Zacks Investment Research7/1/2026Positive
Applied Optoelectronics Plunges 13%, Coherent Drops 9%, Lumentum Falls 8%: Has an Optics Valuation Reckoning Begun?
Shares of optical and photonics suppliers are tumbling at midday Tuesday, with Applied Optoelectronics (NASDAQ:AAOI) stock leading the decline, down 13% to $149.
24/7 Wall Street6/23/2026Negative
Lumentum Chair of the Board, Penny Herscher, and CEO, Michael Hurlston to Participate in Rome Conference on AI, Ethics and Governance
SAN JOSE, Calif.--(BUSINESS WIRE)--Lumentum Holdings Inc. (“Lumentum”), a global leader in optical and photonic technologies that power the networks and infrastructure behind artificial intelligence (AI), today announced that Penny Herscher, Chair of the Board, and Michael Hurlston, President and Chief Executive Officer, will participate as expert speakers at the Rome Conference on AI, Ethics, and Governance, taking place June 18–20, 2026. The third annual conference will convene global leaders.
Business Wire6/16/2026Neutral
Why Lumentum Still Has Runway
Revenue surged 90% year over year to $808 million despite management reporting demand exceeding supply by over 30%. Components revenue reached $533 million, growing 20% sequentially and 77% annually as AI optical demand accelerated. Non-GAAP operating margin expanded 2,140 basis points to 32.2%, with Q4 guidance implying further profitability gains.
Seeking Alpha6/15/2026Positive
LITE vs. AVGO: Which AI Infrastructure Stock Is the Better Pick Now?
Lumentum tops Broadcom as its AI-driven optical networking growth, expanding margins and demand visibility point to stronger near-term upside.
Zacks Investment Research6/15/2026Positive
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Data last updated: 7/9/2026