Lumentum to Report Q1 Earnings: What's in Store for the Stock?

Lumentum LITE is scheduled to report first-quarter fiscal 2026 results on Nov. 4, 2025.For the quarter, LITE expects revenues to be between $510 million and $540 million. Non-GAAP earnings are expected to be between $0.95 and $1.10 per share.The Zacks Consensus Estimate for first-quarter revenues is pegged at $526.26 million, suggesting a 56.21% year-over-year rise.The consensus mark for earnings is pegged at $1.03 per share, unchanged over the past 30 days, indicating growth of 472.22% from the year-ago quarter’s reported figure.Lumentum Holdings Inc. Price and EPS Surprise Lumentum Holdings Inc. price-eps-surprise | Lumentum Holdings Inc. QuoteLumentum’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 18.32%.Let us see how things might have shaped up for LITE prior to the announcement.Key Factors to Note for LITE’s Q1 ReleaseLumentum’s first-quarter fiscal 2026 performance is expected to have benefited from strong growth in its Cloud & Networking segment, which has been a key driver for the company’s revenues. The Cloud & Networking segment continues to see robust demand driven by AI and cloud applications, with products such as Datacom lasers and cloud modules contributing significantly. In the to-be-reported quarter LITE is expected to have seen sequential growth in this segment, supported by the expanding portfolio and increasing adoption of its advanced optical solutions by hyperscale cloud customers. The company’s Datacom laser shipments are expected to have played a significant role in driving revenue growth in the to-be-reported quarter. Lumentum has seen strong demand for its 100-gig and 200-gig EMLs, which are critical components for high-speed transceivers used in data centers.The company’s optical circuit switches (OCS) are another key growth driver. Lumentum has already recognized its first revenues from OCS shipments to two hyperscale customers and expects further growth as a third hyperscale customer is set to deploy its OCS products in calendar 2026.  The company is actively expanding its in-house OCS manufacturing capacity to meet the increasing demand, which is expected to have supported revenue growth in the fiscal first quarter.However, LITE’s quarterly performance is expected to have suffered due to potential tariff impacts and supply constraints in telecom components, which might have limited growth despite strong demand across cloud and AI applications. Additionally, the Industrial Tech segment is anticipated to have remained flat, with modest declines in industrial lasers offset by a seasonal uptick in 3D sensing.What Our Model SaysAccording to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.Lumentum has an Earnings ESP of +2.91% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Other Stocks to ConsiderHere are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:Advanced Micro Devices AMD currently has an Earnings ESP of +0.18% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.AMD shares have risen 113.4% year to date. AMD is set to report third-quarter fiscal 2025 results on Nov. 4.Allient Inc ALNT presently has an Earnings ESP of +8.00% and a Zacks Rank #3. Allient shares have gained 133.4% year to date. ALNT is scheduled to report third -quarter 2025 results on Nov. 5.Affirm AFRM presently has an Earnings ESP of +3.53% and a Zacks Rank #3. AFRM shares have gained 17.8% year to date. AFRM is scheduled to report third-quarter 2025 results on Nov. 6. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report Allient Inc. (ALNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks