Lumentum Holdings shares surge 7.02% after-hours as multiple analysts raise price targets to $560–$600, citing growth potential and improved profitability.

Lumentum Holdings (LITE) surged 7.02% in after-hours trading, driven by a combination of positive catalysts. The stock gained momentum following Fidelity Growth Strategies Fund’s Q4 2025 investor letter, which highlighted LITE as a top performer, citing its 33.68% monthly return and 402% annual gain amid strong AI-driven demand. Concurrently, Lumentum reported Q2 2026 results showing a 65% year-over-year revenue jump to $665.5 million and a $1.10 EPS profit, reversing earlier losses. Analysts further fueled optimism, with Citigroup raising its price target to $560 (24.44% increase) and Northland Securities setting a $600 target, while Barclays increased its price target to $475. These developments collectively reinforced investor confidence in Lumentum’s growth trajectory and profitability amid the AI infrastructure boom.