TLDR: Shares of EssilorLuxottica, the maker of Ray-Ban, surged to an all-time high on October 17, 2025, adding nearly $20 billion to its market value. This significant rally was fueled by exceptional demand for its AI-powered Meta Ray-Ban smart glasses, which contributed over four percentage points to the company’s record-breaking third-quarter sales growth of 11.7%. Analysts are hailing smart glasses as a potential game-changer, with EssilorLuxottica accelerating production plans to meet the burgeoning market interest.
EssilorLuxottica, the Franco-Italian eyewear giant behind iconic brands like Ray-Ban, witnessed its shares hit an unprecedented all-time high on Friday, October 17, 2025. The company’s stock surged by over 10%, reaching up to 308 euros per share and adding nearly $20 billion (approximately 15 billion euros) to its market capitalization, marking its most significant daily gain in over eight years. This remarkable performance follows the announcement of a stellar third-quarter earnings report, which showcased robust demand for its innovative AI-powered Meta Ray-Ban smart glasses.
The company reported a third-quarter sales growth of 11.7% year-on-year, reaching 6.9 billion euros ($8.1 billion), surpassing market expectations and marking its best quarterly performance in history. A significant driver of this success was the burgeoning interest in its smart eyewear. Chief Financial Officer Stefano Grassi highlighted that the AI-powered glasses contributed more than four percentage points to the overall sales growth. He further noted that the overwhelming demand has prompted EssilorLuxottica to accelerate its production capacity expansion plans ahead of schedule.
Investor enthusiasm for the integration of artificial intelligence into consumer devices is evident. J.P. Morgan analysts, in a note to investors, declared the smart glasses a ‘material growth driver’ for EssilorLuxottica, while acknowledging the resilience of its core eyewear business. The company’s earnings announcement underscored this sentiment, stating, ‘The exponential growth of wearables provided an extra-boost to the top line performance.’
The Ray-Ban Meta smart glasses, which combine iconic design with cutting-edge AI technology, are currently available with models priced from $379 to $799 for the flagship version featuring a built-in display. Further expansion of sales to Canada, France, Italy, and Britain is slated for early 2026. At Meta Connect in September 2025, Meta unveiled the $799 Meta Ray-Ban Display glasses, which incorporate a built-in display and neural wristband technology for hands-free control, signaling a future where glasses could replace many smartphone functionalities. CFO Stefano Grassi emphasized this vision, stating that ‘glasses will materially replace most of the functionality that today we have embedded into our phones.’
The strategic partnership between EssilorLuxottica and Meta Platforms has been deepening. In July 2025, Meta acquired a nearly 3% stake in EssilorLuxottica, valued at approximately $3.5 billion, with considerations to expand this stake to roughly 5% over time. This long-term commitment underscores the potential seen in the smart eyewear market. Additionally, EssilorLuxottica is collaborating with luxury brand Prada on high-fashion AI glasses, following Prada’s renewed ten-year eyewear licensing agreement in December 2024.
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Industry analysts are projecting a transformative impact from smart glasses. Barclays analysts have gone as far as to describe smart glasses as potentially ‘the most disruptive innovation since mobile phones,’ forecasting global sales to reach 60 million units by 2035. Equita analysts have also upgraded their annual revenue forecast for wearables, now expecting them to contribute approximately one billion euros to the group’s sales this year. The market’s strong reaction to EssilorLuxottica’s latest results solidifies the belief that AI-powered wearables are not just a niche product but a significant force reshaping the future of consumer technology and luxury.
