TLDR
- Ciena reported Q2 adjusted EPS of $1.64, beating the $1.46 forecast, with revenue up 40% to $1.57 billion
- Despite beating on both earnings and revenue, CIEN stock fell 5.7% in premarket trading
- Ciena raised its full-year revenue guidance to $6.3 billion, above the prior range top of $6.3 billion
- The drop came on a rough day for optical networking stocks, with Coherent, Marvell, and Corning all falling
- The sector had rallied hard on Tuesday after Nvidia CEO Jensen Huang called Marvell the next “trillion-dollar company”
Ciena (CIEN) stock dropped 5.7% in premarket trading Thursday after the company posted fiscal second-quarter earnings that topped Wall Street’s expectations on both the top and bottom lines.
Adjusted EPS came in at $1.64, up from $0.42 a year ago and well above the $1.46 analysts expected. Revenue hit $1.57 billion, a 40% jump year over year and ahead of the $1.51 billion consensus estimate.
So why is the stock down? It comes down to guidance — and expectations that were sky-high after a 749% gain over the past 12 months.
CIENA $CIEN EARNINGS ARE OUT!
🟢 EPS: $1.64 | Est. $1.45
🟢 REV: $1.57B | Est. $1.5B
IMPLIED MOVE TODAY: ±14.89%!! pic.twitter.com/gzdgnhBgij— Schaeffer's Investment Research (@schaeffers) June 4, 2026
Ciena raised its full-year revenue guidance to $6.3 billion, plus or minus $100 million. That’s up from the prior range of $5.9 billion to $6.3 billion. Analysts had penciled in $6.18 billion, so the raise technically clears the bar — but only just.
For Q3, Ciena guided for revenue of $1.625 billion, plus or minus $50 million.
Optical Networking Stocks Already Under Pressure
The report landed on a bad day for the sector. Optical networking names were broadly selling off Thursday: Lumentum fell 4.2%, Coherent dropped 5.6%, Marvell was down 6.5%, and Corning fell 4.5%.
That’s a sharp reversal from Tuesday, when the group rallied hard after Nvidia CEO Jensen Huang singled out Marvell as the next potential “trillion-dollar company.” What goes up fast can come down just as quickly.
Ciena’s revenue breakdown for the quarter showed optical networking accounted for $1.1 billion, or 70% of total revenue. Routing and switching contributed $174 million, while platform software and services brought in $93.9 million.
Margins Hold Up as AI Demand Drives Growth
GAAP gross margin came in at 44.0%, with an adjusted gross margin of 44.9%. Adjusted operating income was $307.1 million, representing a 19.5% adjusted operating margin. Adjusted EBITDA for the quarter reached $341.8 million.
Management pointed to AI-related networking demand as the key driver behind the revenue growth, along with continued operating leverage supporting margin expansion.
Two customers each represented more than 10% of quarterly revenue, together accounting for 34% of total revenue for the period.
Ciena also repurchased around 200,000 shares for $83.1 million during the quarter under its existing $1 billion buyback program.
GAAP diluted net income per share was $1.49, with net income of $218.2 million for the quarter.
Days sales outstanding came in at 71, and inventory turns were 3.6 for the period.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
