The Paris-listed eyewear giant, founded by late Italian entrepreneur Leonardo Del Vecchio, reported third-quarter sales growth of 11.7% year-over-year to 6.9 billion euros ($8.1 billion), marking the company’s best quarterly performance in its history. The results exceeded analyst expectations, driven primarily by explosive demand for the AI-powered Ray-Ban Meta smart glasses that EssilorLuxottica has been developing in partnership with Meta Platforms since before the pandemic.
By 1400 GMT on Friday, EssilorLuxottica’s shares were up 13.8%, representing the company’s biggest daily gain since 2008 and lifting its market capitalization to 126.5 billion euros. The surge sent ripples through European luxury markets, driving the Stoxx Europe Luxury 10 benchmark index up over 7% for the week, its largest weekly gain since January.
The Smart Glasses Catalyst
While the smart glasses business still accounts for only a fraction of EssilorLuxottica’s total revenue, it has rapidly emerged as a focal point for analysts and investors, transforming from a speculative venture into a tangible growth engine that is reshaping the company’s trajectory.
Chief Financial Officer Stefano Grassi revealed that the AI-powered glasses contributed over four percentage points to sales growth in the quarter, with demand levels prompting the company to accelerate production capacity plans ahead of schedule. “The exponential growth of wearables provided an extra-boost to the top line performance,” the company stated in its earnings announcement.
The momentum has been building throughout 2025. Earlier in the year, EssilorLuxottica reported that Ray-Ban Meta smart glasses sales more than tripled in the first half compared to the same period in 2024, representing over 200% growth. The company announced in February that it had sold 2 million units since the October 2023 debut, with Meta CEO Mark Zuckerberg admitting that demand “is still outpacing our ability to build them.”
The latest Ray-Ban Meta models, priced between $379 and $799 for the new flagship version featuring a built-in display, represent a significant evolution from earlier attempts at eyewear computing. By integrating upgraded cameras and generative AI features with Ray-Ban’s iconic designs, Meta has succeeded where previous tech giants stumbled, creating a product that consumers actually want to wear.
Currently available in limited physical stores, the smart glasses are slated for expansion into Canada, France, Italy, and Britain in early 2026, setting the stage for what analysts predict could be massive international growth. The company is working to reach 10 million unit annual production capacity by the end of 2026, ahead of its original schedule.
Resurrecting a Dead Category
The success of Ray-Ban Meta smart glasses has accomplished something remarkable: resurrecting an entire product category that industry observers had written off as dead. Google and Microsoft had both previously abandoned the smart glasses market after high-profile failures, leaving the space dormant for years.
Now, the tide has turned. Analysts have forecast that smart glasses could become the most disruptive innovation since mobile phones. Market research firm Grand View Research projects the smart glasses market will expand from $1.93 billion in 2024 to $8.26 billion by 2030, while MarketsandMarkets forecasts growth to $4.13 billion by 2030, representing a compound annual growth rate of 29.4%.
That optimistic outlook has drawn Meta’s biggest competitors back into the arena. Google announced in May 2025 a $150 million partnership with Warby Parker to develop smart glasses powered by Google’s Gemini AI digital assistant, with Google committing $75 million to product development and an additional $75 million in potential equity investment.
Google is also working with Gentle Monster and Kering Eyewear on Android XR-based smart glasses. Meanwhile, Apple is reportedly developing its own smart glasses offering, with supply chain analysts projecting a potential 2026 or 2027 launch.
The competitive dynamics underscore a broader shift in how the technology industry views wearable computing. What was once dismissed as a niche curiosity is now being reconsidered as potentially the next major computing platform, with implications that extend far beyond eyewear.
A Material Growth Driver and Strategic Investment
J.P. Morgan analysts described the smart glasses as now representing a “material growth driver” for EssilorLuxottica while noting that the company’s core eyewear business remains resilient. This dual strength : a thriving traditional business paired with explosive growth in an emerging category has made EssilorLuxottica particularly attractive to investors seeking both stability and innovation.
Equita analysts upgraded their annual revenue forecast for wearables following the earnings report, now expecting an impact on the group’s sales of approximately one billion euros this year.
“The acceleration in third-quarter revenues and the level of confidence expressed on fourth-quarter and mid-term prospects are an important indicator of the success of the group’s strategic drivers,”
They noted in a research report. The strategic importance of the partnership became even more apparent in July 2025, when Meta acquired a nearly 3% stake in EssilorLuxottica valued at approximately $3.5 billion. Bloomberg reported that Meta is considering expanding its stake to roughly 5% over time, signaling a long-term commitment to the partnership that extends well into the next decade.
EssilorLuxottica’s American Depositary Receipts rose as much as 7% following news of the investment, with the market viewing the deal as a strong vote of confidence in the eyewear maker’s technology roadmap. As Bernstein analysts noted, “The growing ties with Meta should be seen as a vote of confidence in the eyewear maker and the opportunity in eyeglasses.”
Expanding Product Ecosystem
Beyond Ray-Ban, the partnership has expanded into multiple product lines targeting diverse consumer segments. In June 2025, Meta and EssilorLuxottica launched Oakley Meta smart glasses, priced at $499, featuring higher-resolution 3K recording, improved speakers, and 40% longer battery life lasting up to eight hours. The athletic-focused Oakley line demonstrates the companies’ strategy of creating form-factor diversity for different lifestyle needs.
At Meta Connect in September 2025, the company unveiled the $799 Meta Ray-Ban Display glasses, featuring a built-in display and neural wristband technology that reads muscle movements for hands-free control. Bloomberg has also reported that Meta and EssilorLuxottica are developing high-fashion AI glasses in partnership with Prada, following Prada’s renewed ten-year eyewear licensing agreement with EssilorLuxottica in December 2024.
CFO Stefano Grassi emphasized the broader ecosystem implications on the earnings call, stating that “glasses will materially replace most of the functionality that today we have embedded into our phones.” He noted that the wearables business is already profitable and will generate revenue not just from hardware but also from lens sales and, eventually, from AI-powered services.
Strategic Positioning
EssilorLuxottica’s year-to-date stock performance has significantly outpaced the benchmark European luxury index, as investors increasingly view the company through a technology lens rather than purely as a luxury goods manufacturer. This perception shift has broadened the company’s investor base and elevated its valuation multiples.
The company, which has also emerged as a possible contender in the race to acquire fashion group Armani, finds itself at an interesting crossroads. Its partnership with Meta has transformed it from a traditional eyewear manufacturer into a critical player in the development of next-generation computing platforms, while its ownership of iconic brands like Ray-Ban provides the design credibility necessary to make wearable technology socially acceptable.
As EssilorLuxottica Chairman and CEO Francesco Milleri and Deputy CEO Paul du Saillant stated:
“We are leading the transformation of glasses as the next computing platform, one where AI, sensory tech and a data-rich healthcare infrastructure will converge to empower humans and unlock our full potential.”
This positioning gives EssilorLuxottica unique advantages as the smart glasses market matures. Unlike pure technology companies that have struggled to create fashionable wearables, EssilorLuxottica possesses decades of expertise in creating products people want to wear.
Questions Ahead
Despite the enthusiasm, questions remain about the smart glasses market’s ultimate trajectory. The technology is still in its early stages, with meaningful challenges around battery life, privacy concerns, and social acceptance yet to be fully resolved. A 2024 study demonstrated that hacked Ray-Ban Meta glasses could enable real-time facial recognition, raising concerns about mass surveillance. The Irish Data Protection Commission has requested stronger measures to ensure compliance with Europe’s GDPR regulations.
Additionally, as major competitors enter the market, EssilorLuxottica will face pressure to maintain its technological edge while defending its design advantages. The partnership with Meta, while currently successful, also introduces dependency on a single technology partner in a rapidly evolving space where maintaining multiple strategic relationships might prove advantageous.
Market research suggests varying growth trajectories, with estimates ranging from $4.13 billion to $8.26 billion by 2030, highlighting uncertainty about adoption rates and price points. Some analysts project even higher long-term potential, with forecasts suggesting the market could reach $15 billion or more by 2032 if mainstream consumer adoption accelerates.
Nevertheless, Friday’s market reaction suggests that investors are betting on EssilorLuxottica’s ability to navigate these challenges. The nearly $20 billion increase in market value represents a strong vote of confidence that the company has successfully positioned itself at the intersection of fashion and technology, a space that could define consumer electronics for the next generation.
As production ramps up and international expansion proceeds, the coming quarters will test whether the current momentum can be sustained. For now, however, EssilorLuxottica has achieved something rare in the technology industry: successfully bridging the gap between innovation and mass-market appeal in a product category that others had declared impossible.
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