Lumentum Holdings shares rise 5.08% premarket after Fidelity boosts stake on strong earnings and analyst upgrades.

Lumentum Holdings (LITE) surged 5.08% in premarket trading, driven by positive earnings momentum, fund inflows, and analyst upgrades. The Fidelity Growth Strategies Fund highlighted LITE’s strong Q4 2025 performance, citing a 33.68% monthly return and a 402.36% annual gain, with the fund increasing its position by 127% due to better-than-expected Cloud & Networking segment results. LITE’s Q2 2026 earnings showed a $665.5 million revenue surge and $78.2 million profit, reversing prior losses. Analysts also contributed, with Citigroup raising its price target to $560 and Northland Securities setting a $600 target, reflecting confidence in the company’s growth in optical components for AI and high-speed communications. Technical indicators, including a golden cross and expanding Bollinger Bands, further reinforced the bullish trend, supported by elevated trading volume.