Lumentum Holdings (LITE) Stock Forecast & Price Target

Lumentum Holdings Inc. has provided positive revenue guidance for 1Q26, projecting revenues between $510 million to $540 million and earnings per share (EPS) in the range of $0.90 to $1.10. The company has accelerated its target date for achieving quarterly revenues of over $600 million to 4Q26, supported by expectations of operating at the high end of a gross margin (GM) range of 37% to 40%. Additionally, Lumentum is poised for significant growth in laser chip sales and transceiver sales, anticipating increases of over 50% and 40%, respectively, bolstered by higher capacity in its laser technologies.

Lumentum Holdings Inc. has faced revenue and gross margin shortfalls in specific product lines, primarily attributed to ongoing supply chain disruptions. Additionally, weaker-than-expected demand for iPhone 3D sensing technology could negatively impact the company's overall revenue performance. Although there may be potential for future growth in telecom and ZR modules, the continued supply constraints suggest challenges in meeting that demand, further complicating Lumentum's financial outlook.