Zacks downgrades Lumentum stock to Hold. Shares fall 2.82 percent

Published on 10/20/2026 at 11:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Quarterly revenue rose 109.30 percent to USD 1.01 billion. Lumentum stock costs EUR 727.90 on October 20, 2026, 2.82 percent below its EUR 749.00 Xetra close.

Rating and reporting calendar

On October 14, 2026, Zacks Research downgraded Lumentum from Strong Buy to Hold.
Fiscal fourth-quarter revenue reached USD 1.01 billion on August 11, 2026.
Lumentum stock trades at EUR 727.90 at 11:04 a.m. CEST at Lang & Schwarz on October 20, 2026, 2.82 percent below the Xetra close of October 19, 2026.
Lumentum will release fiscal first-quarter 2027 results on November 5, 2026.

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Lumentum (ISIN US55024U1097) was trading at EUR 727.90 at Lang & Schwarz on October 20, 2026, at 11:04 a.m. CEST, down 2.82 percent versus the Xetra close of October 19, 2026 at EUR 749.00. The latest analyst signal came on October 14, 2026, when MarketBeat reported that Zacks Research downgraded the stock from Strong Buy to Hold.

Why did Zacks cut the rating?

The downgrade contrasts with Lumentum's strong operating momentum. In fiscal fourth-quarter results released on August 11, 2026, the company posted USD 1.01 billion in revenue, up 109.30 percent year over year, while adjusted earnings per share reached USD 3.23 against a USD 2.97 consensus estimate, according to MarketBeat. The same report said Lumentum guided fiscal first-quarter 2027 adjusted earnings per share to USD 4.05-4.35.

For investors, the tension is between rapid demand growth and a demanding valuation. MarketBeat listed 16 Buy ratings, six Holds and one Sell rating, with a consensus average target of USD 1,078.75 on October 14, 2026. That mix shows why a single downgrade can matter even when the latest reported quarter exceeded expectations.

Three events changed the setup

On August 11, 2026, Lumentum reported fiscal fourth-quarter revenue of USD 1.01 billion and adjusted earnings per share of USD 3.23. On October 5, 2026, the company announced its fiscal first-quarter 2027 results date of November 5, 2026. On October 14, 2026, Zacks Research moved its rating from Strong Buy to Hold, as reported by MarketBeat.

When are the next results due?

Lumentum said on October 5, 2026, that it will publish fiscal first-quarter 2027 results on November 5, 2026, after the market closes, followed by a webcast at 5:00 p.m. ET. That release is the next hard test for whether the revenue surge can continue into the new fiscal year.

Sharp pullback meets strong results

The stock's October 20 decline places the market reaction directly against the company's latest numbers. The next report will therefore put revenue growth, adjusted earnings per share and the fiscal first-quarter outlook back at the center of the valuation debate. Lumentum was trading at EUR 727.90 at Lang & Schwarz on October 20, 2026, at 11:04 a.m. CEST, 2.82 percent below the Xetra close of October 19, 2026 at EUR 749.00. The further course of trading is shown by the continuously updated real-time quote of Lumentum stock.