Ciena Corp beats Q2 revenue estimates on AI-driven demand, lifts FY sales outlook

Ciena

04/06/2026 12:11

Overview
U.S. high-speed networking equipment maker's fiscal Q2 revenue rose 40%, beating analyst expectations
Adjusted EPS for fiscal Q2 rose 290% to $1.64
Company raised full-year revenue guidance to $6.3 bln, a 32% increase at midpoint

Outlook
Ciena raises full-year 2026 revenue guidance to $6.3 bln plus or minus $100 mln
Company sees Q3 revenue of $1.625 bln plus or minus $50 mln
Ciena expects Q3 adjusted gross margin of 45% plus or minus 50 bps

Result Drivers
AI-DRIVEN DEMAND - Co said structural, multi-year opportunities created by AI-driven demand for high-speed connectivity supported revenue growth
PORTFOLIO STRENGTH - Co cited the strength of its product portfolio and disciplined execution as key factors in Q2 performance
GROSS MARGIN EXPANSION - Adjusted gross margin increased 3.9 percentage points year-over-year, contributing to higher profitability

Company press release: ID:nBw67bvlta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.57 bln
$1.51 bln (13 Analysts)
Q2 Adjusted EPS
 
$1.64
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "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 Corp is $497.50, about 19.8% below its June 3 closing price of $620.37
The stock recently traded at 81 times the next 12-month earnings vs. a P/E of 60 three months ago

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(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.)