Shares in Ray-Ban Maker EssilorLuxottica Gain as AI Glasses Continue to Shine

By Joshua Kirby

Shares in EssilorLuxottica surged after the eyewear group reported continued revenue strength at its AI-powered smartglasses business, though analysts warn that momentum may begin to tail off.

Revenue in the wearables division jumped 20% over the third quarter of the year to 486 million euros ($546.2 million), the Franco-Italian group said Tuesday. The wearables category--which houses the Ray-Ban and Oakley smartglasses made in tandem with tech giant Meta Platforms, as well as Nuance Audio glasses aimed at customers needing a boost to their hearing--still represents only a small slice of the group's total revenue, which came to 7.49 billion euros over the quarter. But the spurt ensured overall sales beat analysts' forecasts, and the group has been bullish over the category's growth prospects.

"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," analysts at JPMorgan wrote.

Shares rose more than 11% to 167.65 euros in morning trading in Paris.

The most recent rise in revenue "confirmed the strong momentum behind this emerging category we continue to lead," the group's Chief Executive Officer, Francesco Milleri, and deputy CEO Paul du Saillant said.

The robust quarterly performance leaves the group well-placed for the end of the year, analyst Cedric Rossi at Stifel wrote following the update. A pipeline of new smartglasses models and positive price-mix trends also bode well, Rossi said.

New launches are "further strengthening our wearable portfolio, offering people new ways to engage with and navigate the world around them," Milleri and Du Saillant said.

Still, analysts warn that the company's sales momentum could slow in the final months of the year. The launch of new models of artificial-intelligence glasses with Meta in September last year helped drive a surge in wearables revenue in the fourth quarter of 2025 to more than 1 billion euros, leaving a tough comparison base to match this year. Meanwhile, a competing smartglasses model is due to be launched by Google this fall, posing the first serious challenge to EssilorLuxottica and Meta's dominant position in the market.

"The upcoming launch of Google glasses will be a first acid test," analysts at Bernstein 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.

"It makes sense for EssilorLuxottica to espouse a conservative message on the fourth quarter."

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

October 21, 2026 04:18 ET (08:18 GMT)