Lumentum Shares Surge 12% as AI-Driven Revenue Growth Accelerates

Lumentum shares have risen about 12.1% in the past month, driven by strong AI-driven revenue growth and improving profitability.

The company's fourth-quarter fiscal 2026 revenues surged 109.3% year over year to $1.01 billion, with non-GAAP gross margin expanding to 50.4% from 37.8% and operating margin jumping to 36.6% from 15%.

Lumentum expects first-quarter fiscal 2027 revenues of $1.225-$1.275 billion and non-GAAP earnings of $4.05-$4.35 per share.

The strong results and bright near-term forecast are expected to continue the momentum in LITE's shares, which have outperformed the broader Zacks Computer and Technology sector and some peers like Cisco Systems CSCO and Broadcom AVGO over the past month.