Shares in EssilorLuxottica rose nearly 13% on Wednesday after the Ray-Ban maker reported stronger-than-expected third-quarter revenue, as resilient demand for its core eyewear products and continued growth in smart glasses helped offset concerns about a potential slowdown in the wearables business.
The Franco-Italian group reported revenue of €7.49 billion for the quarter, beating analyst expectations of €7.36 billion.
The results offered some relief to investors after the world’s largest eyewear company suffered a steep decline in its market value over the past year.
The stock is still down 36% for the year.
Revenue from its wearables division, which includes artificial intelligence-powered smart glasses developed with Meta Platforms, rose 20% to €486 million, the company said on Tuesday.
Although wearables still account for a relatively small proportion of total revenue, the business has become an increasingly important growth driver as EssilorLuxottica expands beyond traditional eyewear.
“We think this print is a strong reminder of the quality business EssilorLuxottica remains, showing solid execution on the core while exploring new routes via innovation,” JPMorgan analysts wrote.
Core eyewear demand supports quarterly performance
The latest results suggest EssilorLuxottica continues to benefit from its established eyewear business while developing new products aimed at technology-conscious consumers.
Its wearables division includes Ray-Ban and Oakley smart glasses made in partnership with Meta, as well as Nuance Audio glasses designed to assist people with hearing difficulties.
The strong quarterly performance leaves the company well-positioned for the end of the year, according to Stifel analyst Cedric Rossi.
A pipeline of new smart glasses models and favourable price-mix trends could provide additional support, he said.
The company has been expanding its wearable product portfolio as demand grows for glasses that combine traditional eyewear with artificial intelligence and digital features.
New launches are “further strengthening our wearable portfolio, offering people new ways to engage with and navigate the world around them,” Chief Executive Francesco Milleri and Deputy Chief Executive Paul du Saillant said.
However, the business remains relatively small compared with EssilorLuxottica’s overall operations, making sustained growth in traditional eyewear important to its financial performance.
Shares rebound after steep decline
The share-price surge marks a potential reprieve for EssilorLuxottica, whose stock has nearly halved since the company reached a record market valuation of €149 billion ($167 billion) a year ago.
The decline followed investor concerns about corporate governance and the commercial prospects of its emerging smart glasses business, including questions surrounding privacy and whether sales would meet expectations.
The latest revenue figures have helped ease some of those concerns by demonstrating continued demand for the company’s products.
However, analysts remain cautious about whether the current pace of growth can be maintained through the final months of the year.
Google smart glasses pose a new challenge
One of the main concerns is the difficult comparison EssilorLuxottica faces in the fourth quarter.
The launch of new artificial intelligence-powered glasses with Meta in September last year helped push wearables revenue above €1 billion in the fourth quarter of 2025.
That creates a high base against which this year’s sales will be measured.
The company is also preparing for increased competition, with Alphabet’s Google expected to launch its Gemini-powered AI glasses by the end of 2026.
The launch could challenge the position established by EssilorLuxottica and Meta in the emerging smart glasses market, particularly if rival products gain consumer traction.
“The upcoming launch of Google glasses will be a first acid test,” Bernstein analysts wrote in a note.
“If competitor smart glasses proved at some point to be compelling—and that remains an if—the first casualty will be once again EssilorLuxottica’s multiple,” they said.
Bernstein analysts also warned that the possibility of smart glasses disrupting the traditional eyewear market could continue to weigh on investor sentiment.
“The prospect of smart glasses disrupting traditional eyewear will likely stay as a sword of Damocles hanging over EssilorLuxottica,” the analysts said in a note to investors.
With Google preparing to enter the market, it “makes sense for EssilorLuxottica to espouse a conservative message” on fourth-quarter expectations, they added.
The immediate revenue performance has strengthened the case for EssilorLuxottica’s growth strategy, but investors will be watching whether it can sustain momentum as competition intensifies and comparisons become more demanding.
The company’s ability to defend its position in smart glasses while maintaining growth in its core eyewear business will be central to its valuation outlook.
The post EssilorLuxottica stock jumps 13% as sales beat estimates, but Google challenge looms appeared first on Invezz
