Citi projects a significant demand gap for EML lasers, estimated at 30% in 2026, narrowing to 20% in 2027 and 11% in 2028, due to InP supply remaining below demand for the next three years. The firm upwardly revised Lumentum's FY2027E and FY2028E EPS estimates by 6% and 5% respectively, anticipating a 15% price increase in FY2027E. Coherent has begun volume production on a 6-inch InP wafer platform and expects to double its InP capacity by the end of calendar 2026.