Ciena Corporation (NYSE:CIEN) reported fiscal second quarter that came in ahead of Wall Street expectations for both earnings and revenue, but shares fell about 19% on concerns about the company’s forward guidance and outlook relative to elevated expectations.
Ciena raised its fiscal 2026 revenue outlook to $6.3 billion, plus or minus $100 million, compared with prior expectations of $6.18 billion.
For the third quarter, the company expects revenue of $1.625 billion, plus or minus $50 million, with adjusted gross margin around 45%.
For fiscal Q2, the quarter ended May 2, Ciena posted adjusted earnings per share of $1.64, compared with analyst estimates of $1.46.
Revenue totaled $1.57 billion, versus expectations of about $1.50 billion, and rose roughly 40% from the same period a year earlier.
Adjusted gross margin was 44.9%, up from 41.0% in the prior-year quarter.
Segment results were led by Optical Networking, which generated $1.1 billion in revenue compared with $773.6 million a year earlier. Routing and Switching revenue increased to $174.2 million.
"Today's results reflect the strength of our portfolio, the power of our business model, and disciplined execution in a dynamic supply environment," Ciena CEO Gary Smith said in a statement.
"Our long-term strategy to be the global leader in high-speed connectivity - both across the WAN and in and around the data center - is tightly aligned to the structural, multi-year opportunities created by AI-driven demand, positioning us to capitalize on market dynamics and drive sustained, profitable growth."