Lumentum shares jump as Ciena targets reinforce optical-sector demand

Sep 16, 2026 19:04 (38d ago)

Lumentum shares rose after Ciena’s results and long-term targets strengthened the optical-networking outlook.
Ciena reported $2.11 quarterly EPS and $1.67 billion revenue, up 37% year over year, and forecast roughly 30% annual revenue growth through fiscal 2029.
Ciena also projected approximately 50% gross margins, 32%-35% operating margins and 20% free-cash-flow margins, while launching a $200 million venture program.

Lumentum Holdings shares rose Wednesday as investors responded to Ciena Corporation’s strong quarterly results and aggressive financial targets through fiscal 2029. Ciena reported earnings per share of $2.11 and revenue of $1.67 billion, then projected approximately 30% compound annual revenue growth from fiscal 2026 through fiscal 2029, adjusted gross margins near 50%, adjusted operating margins of 32% to 35%, and free-cash-flow margins of about 20% by fiscal 2029. The outlook supports expectations for continued spending on multi-gigabit bandwidth, data-center interconnects and high-speed optical networking infrastructure. Lumentum, a provider of photonic components, laser chips and optical transceivers, is positioned as a potential beneficiary. Lumentum shares were up 8.24% at $908.12 at publication, according to Benzinga Pro data, while Morgan Stanley raised its Ciena price objective to $450 from $425 and maintained an equal weight rating.