Ciena's Q3 revenue beats on optical networking strength

Ciena

03/09/2026 12:10

Overview
U.S. optical networking supplier's fiscal Q3 revenue rose 37% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q3 rose 215% to $2.11
Company repurchased $171.7 mln in shares during the quarter

Outlook
Ciena sees Q4 revenue at $1.75 bln plus or minus $50 mln
Company raises full-year revenue guidance to $6.42 bln plus or minus $50 mln
Ciena expects Q4 adjusted gross margin of 45% plus or minus 50 bps

Result Drivers
AI-DRIVEN NETWORK INVESTMENT - Co said increased demand for high-speed connectivity solutions, as AI drives greater network investment, boosted results
SUPPLY CAPACITY - Expanding supply capacity supported profitability, per CFO Marc Graff
OPTICAL NETWORKING SEGMENT - Most revenue growth came from optical networking segment

Company press release: ID:nBwbxbK8Pa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.67 bln
$1.63 bln (13 Analysts)
Q3 Adjusted EPS
 
$2.11
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Ciena Corporation is $562.50, about 58.8% above its September 2 closing price of $354.16
The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 76 three months ago

Reuters Recommended Reads
Sept 2 - Snowflake lifts annual revenue forecast on cloud and AI demand, shares soar
Sept 1 - Credo Technology Q1 revenue more than doubles on AI infrastructure demand; beats estimates
Sept 2 - Broadcom raises AI chip forecast as Big Tech keeps writing bigger checks

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)