Lumentum’s stock soars 371% in 2025 as institutional investors pile in
Lumentum’s stock has surged this year, closing at $390.77 on December 26, 2025. The company’s year-to-date performance reached 371.6%, drawing attention from major investors and analysts. Recent earnings reports and revenue growth have further fuelled interest in the firm’s shares.
In the first fiscal quarter of 2026, Lumentum reported revenue of $533.8 million, a 58.4% increase from the same period last year. Earnings per share (EPS) came in at $1.10, beating analyst expectations of $1.03. Management now forecasts EPS between $1.30 and $1.50 for the second fiscal quarter.
The company’s strong performance has led to increased institutional activity. Swedbank acquired a new position of 59,600 shares, valued at around $9.7 million, in the third quarter. Highland Capital Management added approximately 14,329 shares, worth about $2.33 million, during the same period. Institutional investors now hold roughly 94.05% of Lumentum’s outstanding shares. Analysts have adjusted their outlooks following the rally. Goldman Sachs raised its stake and set a 2025 price target of $85. Barclays increased coverage with a $78 target, while BofA expanded its position, aiming for $72. Despite these upgrades, the average analyst price target stands at $222.13—around 76% below the current market price. The stock’s P/E ratio remains high, at approximately 262 times earnings.
Lumentum’s recent financial results and stock performance have attracted significant investment. With institutional ownership near 94% and analyst targets far below the current price, the market response will likely depend on future earnings. The company’s next quarterly report will be closely watched for further guidance.
