Ciena Raises Full-Year Sales Outlook After Record Quarter
Fiscal third-quarter revenue reached $1.67 billion, up 37% from a year earlier, and the company lifted full-year 2026 guidance to $6.42 billion plus or minus $50 million.
Ciena Corporation (CIEN), the optical networking systems maker, reported fiscal third-quarter revenue of $1.67 billion, up 37% from a year earlier, after 40% growth in the prior quarter.
The company raised fiscal 2026 revenue guidance to $6.42 billion plus or minus $50 million, a 35% increase at the midpoint, from the $6.3 billion plus or minus $100 million range it had issued in June. For the fiscal fourth quarter, it expects revenue of $1.75 billion plus or minus $50 million, against a prior guide of $1.625 billion plus or minus $50 million.
Adjusted earnings were $2.11 a share, up 215% from a year earlier. Adjusted gross margin expanded to 46.4% from 44.9% in the prior quarter. Adjusted operating margin expanded to 22.5% from 19.5%. Adjusted EBITDA was $411.1 million.
Optical Networking, the largest reportable line, generated $1.19 billion, or 71.3% of total revenue. Routing and Switching contributed $164.4 million. Total Networking Platforms revenue was $1.36 billion, or 81.1% of the total. Global Services revenue was $193.6 million. Platform Software and Services was $98.6 million, and Blue Planet Automation Software and Services was $23.2 million.
Cloud provider revenue was 53% of the total and up 82% year over year. RLS and Waveserver revenue each grew more than 55% year over year. Pluggables revenue more than doubled as WaveLogic 6 Nano ramped; WL6n 800ZR pluggables shipments more than doubled sequentially. APAC revenue increased 58% year over year. Ciena received a significant direct performance optics module order and secured a second multi-rail win.
President and CEO Gary Smith said the quarter demonstrated leadership in high-speed connectivity as AI continues to drive network investment. Chief Financial Officer Marc Graff said record results reflected increasingly profitable growth and that expanding supply capacity and operating leverage set the stage to continue to accelerate earnings.
Two customers represented 10% or more of revenue for a combined 41.7% of the total, versus 34.0% in the prior quarter. Average days’ sales outstanding were 76. Inventory turns were 3.5.
Ciena repurchased approximately 0.4 million shares for $171.7 million in the quarter, bringing about $665 million returned under the $1 billion program. It completed a $2.9 billion, 0.0% coupon convertible debt offering. Cash and cash equivalents were $2.45 billion at August 1, 2026. Long-term debt, net, was $3.23 billion.
For the fiscal fourth quarter, Ciena expects adjusted gross margin of 45% plus or minus 50 basis points, adjusted operating expense of $415 million plus or minus $10 million, and adjusted operating margin of 20% plus or minus 50 basis points, versus a prior range of 19% to 20%.
GAAP net income was $266.4 million, or $1.83 a share, compared with $50.3 million, or $0.35 a share, a year earlier. GAAP operating margin was 18.0%.