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Ciena Issues Upbeat Revenue Outlook as Fiscal Second-Quarter Results Top Views

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Ciena Issues Upbeat Revenue Outlook as Fiscal Second-Quarter Results Top Views

Ciena (CIEN) provided an upbeat fiscal third-quarter revenue outlook on Thursday, while the networking systems and software company's results topped market estimates in the prior three-month period.

Revenue is expected to come in at $1.63 billion, plus or minus $50 million, for the ongoing quarter. The current consensus on FactSet is for sales of $1.56 billion.

For the quarter ended May 2, the company posted adjusted earnings of $1.64 a share, surging from $0.42 the year before and surpassing the Street's view for $1.46. Revenue climbed 40% to $1.57 billion, topping the average analyst estimate of $1.51 billion.

"We delivered strong fiscal second quarter results, marked by significant year-over-year revenue growth, adjusted gross margin expansion, and nearly fourfold growth in adjusted earnings per share," Chief Financial Officer Marc Graff said in a statement. "Our demonstrated ability to drive operating leverage gives us confidence in continued earnings expansion and long-term value creation for customers and shareholders."

Sales for the networking platform segment amounted to $1.27 billion, up from $866.3 million in the 2025 quarter. Within the division, optical networking grew to $1.1 billion from $773.6 million, while routing and switching rose to $174.2 million from $92.7 million.

The global services business saw revenue increase to $179.4 million from $146.2 million a year ago.

The "results reflect the strength of our portfolio, the power of our business model, and disciplined execution in a dynamic supply environment," according to Chief Executive Gary Smith.

For fiscal 2026, Ciena now anticipates revenue of $6.3 billion, plus or minus $100 million, representing annual growth of 32% at the midpoint. It previously projected revenue to be in a range of $5.9 billion to $6.3 billion, while the Street is currently looking for $6.18 billion for the ongoing fiscal year.

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