Lumentum Holdings Inc. (NASDAQ: LITE) reported strong financial results for the fourth quarter of fiscal 2025, surpassing analyst expectations. The company posted revenue of $480.7 million, exceeding the estimated $467.31 million and marking a 55.9% year-over-year increase from $308.3 million in the previous quarter. Earnings per share (EPS) reached $0.88 on a non-GAAP basis, beating the consensus estimate of $0.81 by $0.07. Gross margin improved by 1,000 basis points year-over-year to 37.8%, with a GAAP gross margin of 33.3%. Operating margin on a non-GAAP basis was 15.0%, despite a GAAP operating loss of 1.7%. The company highlighted robust demand, particularly in its cloud modules segment, which contributed about half of the sequential revenue growth and shipped to all three major hyperscale customers. Management now expects to surpass $600 million in quarterly revenue by the June 2026 quarter or earlier. For the first quarter of fiscal 2026, Lumentum provided a bullish outlook with projected revenue between $510 million and $540 million and EPS guidance ranging from $0.95 to $1.10, both above consensus estimates. Following the earnings release, Bank of America upgraded Lumentum to Neutral from Underperform and raised the price target from $78 to $135. Shares rose approximately 4.1% in pre-market trading following the announcement.