Ciena Corporation reported fiscal third-quarter results that exceeded analyst expectations, driven by surging demand for high-speed connectivity solutions tied to artificial intelligence infrastructure investments.
The Hanover, Maryland-based network equipment provider posted adjusted earnings per share of $2.11, surpassing the consensus estimate of $1.72 by 23%. Revenue totaled $1.67 billion, up 37% from $1.22 billion in the same quarter a year earlier and exceeding the $1.63 billion forecast. Adjusted gross margin expanded to 46.4% from 41.9% in the prior-year period, while adjusted operating margin more than doubled to 22.5%.
The company’s optical networking segment generated $1.19 billion in revenue, a 46% increase from $815.5 million in the third quarter of fiscal 2025. Customer concentration remained elevated, with two clients accounting for 41.7% of quarterly revenue, each contributing over 10%.
Ciena’s outlook for the fiscal fourth quarter calls for revenue of $1.75 billion, plus or minus $50 million, aligning with analyst projections. For the full fiscal year, the company raised its revenue guidance to $6.42 billion, plus or minus $50 million, representing a 35% year-over-year increase at the midpoint.
Shares of Ciena rose 4.3% in premarket trading following the results. CEO Gary Smith highlighted the company’s role in supporting AI-driven network investments, stating that the quarter demonstrated Ciena’s leadership in high-speed connectivity solutions. CFO Marc Graff noted the record performance reflected profitable growth and positioned the company for future opportunities.
