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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