Ciena oznámila za fiskální 3. čtvrtletí upravený EPS 2,11 USD a tržby 1,67 miliardy USD, obojí nad odhady. Zároveň zvýšila výhled tržeb pro fiskální rok 2026 na 6,4–6,5 miliardy USD.
California State Teachers Retirement System grew its holdings in shares of Ciena Corporation (NYSE:CIEN – Free Report) by 49,854.1% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 104,748,296 shares of the communications equipment provider’s stock after buying an additional 104,538,607 shares during the quarter. California State Teachers Retirement System owned approximately 74.00% of Ciena worth $51,385,324,000 at the end of the most recent reporting period.
A number of other large investors also recently modified their holdings of CIEN. Elyxium Wealth LLC acquired a new stake in shares of Ciena in the fourth quarter valued at about $2,747,810,000. State Street Corp boosted its position in Ciena by 17.2% during the fourth quarter. State Street Corp now owns 5,102,409 shares of the communications equipment provider’s stock valued at $1,193,300,000 after purchasing an additional 750,128 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in Ciena by 53.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,051,625 shares of the communications equipment provider’s stock valued at $947,554,000 after purchasing an additional 1,404,132 shares in the last quarter. Bank of America Corp DE grew its stake in Ciena by 10.4% in the second quarter. Bank of America Corp DE now owns 3,495,795 shares of the communications equipment provider’s stock valued at $284,313,000 after purchasing an additional 329,821 shares in the last quarter. Finally, Corient Private Wealth LLC increased its position in shares of Ciena by 30,114.5% during the 4th quarter. Corient Private Wealth LLC now owns 2,870,677 shares of the communications equipment provider’s stock worth $671,365,000 after purchasing an additional 2,861,176 shares during the last quarter. 91.99% of the stock is currently owned by institutional investors and hedge funds.
Ciena News Roundup Here are the key news stories impacting Ciena this week:
Positive Sentiment: Ciena reported fiscal third-quarter adjusted EPS of $2.11 versus the $1.73 consensus estimate, while revenue rose 37% year over year to $1.67 billion, topping expectations. The earnings beat was driven by strong optical networking demand from cloud and AI data-center customers. Ciena Q3 earnings beat Positive Sentiment: Management raised fiscal 2026 revenue guidance to $6.4 billion-$6.5 billion, above the roughly $6.3 billion consensus range, and projected fourth-quarter revenue of $1.7 billion-$1.8 billion. Ciena also expects at least 30% revenue growth in fiscal 2027, supported by a backlog exceeding $10 billion and a 25%-27% operating-margin outlook. Ciena fiscal 2027 outlook Positive Sentiment: Analysts and financial media continue to identify Ciena as a major beneficiary of a multiyear AI-related optical infrastructure investment cycle, with demand from cloud providers helping support growth beyond the current quarter. Ciena AI optical infrastructure demand Neutral Sentiment: Supply availability is the main constraint on converting Ciena’s strong demand and backlog into revenue during fiscal 2027. This supports pricing and visibility but may limit near-term upside if component shortages persist. Ciena supply constraints Negative Sentiment: Several firms lowered price targets after the report despite retaining positive ratings: JPMorgan reduced its target to $605, while TD Cowen, Rosenblatt and Needham also cut targets. The revisions reflect concerns that Ciena’s valuation and in-line quarterly guidance already discount much of the AI growth opportunity. Analysts lower Ciena price targets Negative Sentiment: At an elevated earnings multiple, investors may demand continued upside surprises. A CEO sale of 2,952 shares worth about $1.07 million adds modest pressure, although it was executed under a pre-arranged Rule 10b5-1 plan. Ciena CEO insider sale Ciena Stock Performance CIEN opened at $321.52 on Monday. Ciena Corporation has a 12-month low of $113.66 and a 12-month high of $637.51. The stock has a market cap of $45.59 billion, a price-to-earnings ratio of 71.77 and a beta of 1.30. The business has a 50 day moving average of $403.61 and a 200-day moving average of $438.25. The company has a quick ratio of 3.17, a current ratio of 3.80 and a debt-to-equity ratio of 1.06. Ciena (NYSE:CIEN – Get Free Report) last issued its earnings results on Thursday, September 3rd. The communications equipment provider reported $2.11 EPS for the quarter, topping the consensus estimate of $1.73 by $0.38. The company had revenue of $1.67 billion during the quarter, compared to the consensus estimate of $1.64 billion. Ciena had a return on equity of 25.33% and a net margin of 10.87%.The firm’s revenue for the quarter was up 37.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.35 EPS. On average, equities research analysts expect that Ciena Corporation will post 5.37 earnings per share for the current year.
Analysts Set New Price Targets A number of equities research analysts have recently issued reports on CIEN shares. Needham & Company LLC dropped their price objective on Ciena from $600.00 to $520.00 and set a “buy” rating on the stock in a research note on Thursday. Bank of America restated a “buy” rating on shares of Ciena in a report on Thursday, August 20th. Argus set a $650.00 price target on shares of Ciena in a research report on Friday, June 5th. CL King set a $347.00 price target on shares of Ciena in a research report on Friday. Finally, Rosenblatt Securities cut their price target on shares of Ciena from $720.00 to $525.00 and set a “buy” rating for the company in a research note on Friday. Thirteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $480.95.
Read Our Latest Stock Analysis on CIEN
Insider Buying and Selling at Ciena In other Ciena news, SVP Joseph Cumello sold 1,586 shares of the company’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $466.33, for a total value of $739,599.38. Following the transaction, the senior vice president directly owned 42,872 shares in the company, valued at $19,992,499.76. The trade was a 3.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Brodie Gage sold 1,200 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $466.10, for a total transaction of $559,320.00. Following the completion of the transaction, the senior vice president directly owned 42,741 shares in the company, valued at $19,921,580.10. The trade was a 2.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 25,422 shares of company stock worth $11,038,802. 0.58% of the stock is currently owned by corporate insiders.
Ciena Company Profile (Free Report)
Ciena Corporation (NYSE: CIEN) is a global supplier of telecommunications networking equipment, software and services. The company develops high-capacity optical transport systems and packet-optical platforms that enable service providers, cloud operators and large enterprises to build, manage and scale their networks. Ciena’s product portfolio includes coherent optical solutions, packet networking platforms and a suite of network automation software designed to optimize bandwidth, reduce latency and simplify network operations.
In addition to hardware offerings, Ciena provides professional services and support, including network design, implementation and ongoing maintenance.
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Ciena Corporation (CIEN) Q3 2026 Earnings Call September 3, 2026 8:30 AM EDT
Company Participants
Gregg Lampf - Vice President of Investor Relations
Gary Smith - CEO, President & Director
Marc Graff - Senior VP & CFO
Scott McFeely - Executive Advisor
Conference Call Participants
George Notter - Wolfe Research, LLC
Tal Liani - BofA Securities, Research Division
Meta Marshall - Morgan Stanley, Research Division
Joseph Cardoso - JPMorgan Chase & Co, Research Division
Ruben Roy - Stifel, Nicolaus & Company, Incorporated, Research Division
Ryan Koontz - Needham & Company, LLC, Research Division
Timothy Long - Barclays Bank PLC, Research Division
Jeffrey Koche - Raymond James & Associates, Inc., Research Division
Timothy Savageaux - Northland Capital Markets, Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the Ciena Fiscal Q3 2026 Financial Results Call. [Operator Instructions]
I will now hand the conference over to Gregg Lampf, Vice President, Investor Relations. Gregg, please go ahead.
Gregg Lampf
Vice President of Investor Relations
Thank you, Jennifer. Good morning, and welcome to Ciena's 2026 Fiscal Third Quarter Conference Call. On the call today is Gary Smith, President and CEO; and Marc Graff, CFO. Scott McFeely, Executive Adviser, is also with us for Q&A.
In addition to this call and the press release, we've posted to the Investors section of our website an accompanying investor presentation that reflects this discussion as well as certain highlighted items from the quarter. Our comments today speak to our recent performance, our views on current market dynamics and drivers of our business as well as a discussion of our financial outlook. Today's discussion includes certain adjusted or non-GAAP measures of Ciena's results of operations. A reconciliation of these non-GAAP measures to our GAAP results is included in today's release.
Before turning the call over to Gary, I'll remind you that during this call, we'll
Ciena oznámila za 3. čtvrtletí zisk 2,11 USD na akcii a tržby 1,67 miliardy USD, obojí nad odhady. Zisk byl meziročně výrazně vyšší než 0,67 USD na akcii.
Ciena (CIEN - Free Report) came out with quarterly earnings of $2.11 per share, beating the Zacks Consensus Estimate of $1.74 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +21.26%. A quarter ago, it was expected that this developer of high-speed networking technology would post earnings of $1.46 per share when it actually produced earnings of $1.64, delivering a surprise of +12.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ciena, which belongs to the Zacks Communication - Components industry, posted revenues of $1.67 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 1.44%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ciena shares have added about 51.4% since the beginning of the year versus the S&P 500's gain of 12%.
What's Next for Ciena?While Ciena has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ciena was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.83 on $1.7 billion in revenues for the coming quarter and $6.55 on $6.33 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Communication - Components is currently in the top 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Computer and Technology sector, ServiceTitan Inc. (TTAN - Free Report) , has yet to report results for the quarter ended July 2026. The results are expected to be released on September 8.
This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
ServiceTitan Inc.'s revenues are expected to be $285.14 million, up 17.8% from the year-ago quarter.
Ciena ve čtvrtek zveřejní výsledky za 3. čtvrtletí fiskálního roku 2026; analytici čekají výnosy 1,64 miliardy USD, tedy meziroční růst o 34 %, a zisk na akcii 1,73 USD.
Thursday is going to be an important day for Ciena (CIEN -4.85%) investors, as it's when their company unveils a fresh quarterly earnings report. Not for the first time, hopes are high for the tech hardware maker. It's one of the better-known equipment suppliers helping to feed the feverish build-out of artificial intelligence (AI) compute. As such, analysts are -- again -- predicting extremely robust growth.
Ciena has a recent history of not only hitting that mark but also beating the consensus estimates of those prognosticators. This, however, didn't help its stock rise after the previous earnings report. Here's what might get the shares to defy gravity this time around.
Image source: The Motley Fool.
Double- and triple-digit growthCiena is scheduled to publish its fiscal 2026 third-quarter results and host a conference call to discuss them before market open on Thursday. It'll be broadcasting to an investment community that continues to expect much from the company.
The consensus analyst revenue estimate for the quarter is $1.64 billion. That's a robust 34% above the same period of 2025, although it sits at nearly the midpoint of the company's guidance range of almost $1.58 billion to nearly $1.68 billion.
A higher bar for Ciena to clear will be net income not in accordance with generally accepted accounting principles (non-GAAP, or adjusted). This is expected to soar by 158% -- wow! -- to $1.73 per share. The company hasn't provided guidance for this metric.
Ciena is quite the grizzled veteran in the optical networking components niche. The current boom in its business is driven by products that enable extremely high-speed data transfers, which are crucial for resource-intensive AI capabilities.
That explains the rosy third-quarter projections from both analysts and company management. Yet the gap between revenue and adjusted profitability growth is striking.
This is based on recent history; Ciena has done an effective job of designing increasingly more cost-effective products. It's also enacted strategic price increases from time to time, which isn't a challenge in such a demand-heavy environment. Another factor at work is Ciena's shift toward more state-of-the-art, premium products with relatively high price tags.
The company's GAAP gross margins tell the tale. Over the past five quarters, they've risen steadily but surely, from 40.2% in the second frame of fiscal 2025 to 44% in the same period of 2026.
Fall from graceI need to emphasize that after Ciena reported its latest earnings (for the fiscal second quarter) in early June, it was hit by an aggressive sell-off by investors. Its stock still hasn't come close to recovering from this.
That's usually not what happens when a company posts a beat-and-raise quarter marked by skyrocketing growth in core fundamentals.
To me, that sharply negative reaction was due to two factors. One was the extreme run-up in the company's shares, which had risen 165% year-to-date as of the day before the earnings release. At that point, it became clear to many that the company was a star pick-and-shovel play on the AI revolution. Investor expectations, then, were sky-high, to the point that only an absolute blowout of a quarter would have sustained that momentum.
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Major factor No. 2 was the performance of Broadcom (AVGO -1.93%), a bellwether for AI adoption (as it's the top designer of custom AI chips favored by many prominent developers). Broadcom reported its own fiscal second-quarter figures a mere two days before Ciena, and the dynamic was similar. A sustained stock rally had left Broadcom richly priced, and despite record results, powerful growth, and meaty margins its stock tumbled. In retrospect, nothing short of a real stunner on the upside was likely to push it higher.
A more forgiving market?So the good news for Ciena is that the pressure has eased since those peak share price days (and I mean that, as its equity hit a more than 25-year high before the offending second-quarter release). At this point, folks are looking for good reasons to believe in the stock again.
I think the company will deliver. After all, it notched earnings beats on lofty analyst estimates in all four of its trailing quarters. And it's not like demand for crucial AI components is fading at all; in fact, the opposite is true. I believe many investors will be looking for yet another raise in guidance, either of the quarterly or (preferably) the annual variety. This has become habitual, too, and the stock might sink if this doesn't occur.
I'm cautiously optimistic here. I think investors won't be as demanding of Ciena as they were in the run-up to the second-quarter print, and its shares will see a lift. However, the company will have to post yet another impressive performance; no matter how strong a business or how favorable its environment, that's never an easy accomplishment.
Archer Investment Corp purchased a new stake in Ciena Corporation (NYSE:CIEN – Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 1,518 shares of the communications equipment provider’s stock, valued at approximately $745,000.
Other large investors have also recently bought and sold shares of the company. Jacobs Levy Equity Management Inc. purchased a new position in Ciena in the first quarter valued at about $395,000. Jones Financial Companies Lllp boosted its stake in shares of Ciena by 139.6% during the 1st quarter. Jones Financial Companies Lllp now owns 5,253 shares of the communications equipment provider’s stock worth $317,000 after acquiring an additional 3,061 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Ciena by 1.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 222,054 shares of the communications equipment provider’s stock worth $13,419,000 after acquiring an additional 3,117 shares during the period. Focus Partners Wealth grew its holdings in shares of Ciena by 14.6% in the 1st quarter. Focus Partners Wealth now owns 5,762 shares of the communications equipment provider’s stock worth $348,000 after acquiring an additional 733 shares during the period. Finally, Franklin Resources Inc. purchased a new position in Ciena in the 2nd quarter valued at approximately $234,000. Hedge funds and other institutional investors own 91.99% of the company’s stock.
Insider Buying and Selling at Ciena In other Ciena news, CFO Marc D. Graff sold 4,995 shares of the stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $430.72, for a total transaction of $2,151,446.40. Following the transaction, the chief financial officer owned 107,519 shares of the company’s stock, valued at $46,310,583.68. This trade represents a 4.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gary B. Smith sold 2,952 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $457.02, for a total transaction of $1,349,123.04. Following the completion of the sale, the chief executive officer directly owned 266,605 shares of the company’s stock, valued at $121,843,817.10. The trade was a 1.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 25,422 shares of company stock worth $11,638,117. 0.58% of the stock is currently owned by insiders.
Ciena Stock Down 5.7% Shares of NYSE CIEN opened at $377.07 on Friday. Ciena Corporation has a 1 year low of $90.00 and a 1 year high of $637.51. The firm’s 50 day moving average price is $415.85 and its 200 day moving average price is $435.53. The firm has a market cap of $53.37 billion, a P/E ratio of 125.69 and a beta of 1.30. The company has a debt-to-equity ratio of 0.53, a quick ratio of 2.11 and a current ratio of 2.73. Ciena (NYSE:CIEN – Get Free Report) last issued its quarterly earnings results on Thursday, June 4th. The communications equipment provider reported $1.64 earnings per share for the quarter, beating the consensus estimate of $1.46 by $0.18. The company had revenue of $1.57 billion during the quarter, compared to the consensus estimate of $1.50 billion. Ciena had a return on equity of 18.15% and a net margin of 7.87%.Ciena’s revenue was up 39.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.42 EPS. As a group, sell-side analysts anticipate that Ciena Corporation will post 5.4 earnings per share for the current year.
Analysts Set New Price Targets A number of analysts have commented on the company. UBS Group reiterated a “buy” rating on shares of Ciena in a research report on Tuesday, July 28th. Raymond James Financial raised their price target on Ciena from $320.00 to $530.00 and gave the company an “outperform” rating in a research report on Thursday, June 4th. Zacks Research lowered shares of Ciena from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. Northland Securities upgraded shares of Ciena from a “market perform” rating to an “outperform” rating and boosted their price objective for the stock from $450.00 to $500.00 in a research report on Wednesday, August 19th. Finally, Argus set a $650.00 price objective on shares of Ciena in a research note on Friday, June 5th. Fourteen analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, Ciena has a consensus rating of “Moderate Buy” and a consensus target price of $527.78.
Read Our Latest Stock Analysis on Ciena
Ciena News Summary Here are the key news stories impacting Ciena this week:
Positive Sentiment: Ciena enters the earnings report with a reported $7.7 billion backlog, momentum in cloud connectivity and demand for networks supporting artificial-intelligence workloads. These factors could support revenue growth and another earnings beat. Ciena Stock Ahead of Q3 Earnings: Buy, Sell, or Wait for the Results? Positive Sentiment: Recent surveys indicate that telecom providers in India, the UAE and Saudi Arabia expect AI-based network services to create new revenue opportunities. The findings reinforce Ciena’s long-term exposure to AI infrastructure spending and optical-network upgrades. Ciena survey: 67% of Indian telcos foresee AI-driven network revenue Positive Sentiment: Needham & Company reaffirmed its Buy rating, while analysts expect earnings growth and see potential for Ciena to exceed quarterly expectations. Needham Reaffirms Buy Rating for Ciena Neutral Sentiment: The company is scheduled to report third-quarter results shortly. Investors are likely waiting for updated guidance, order trends and evidence that AI-driven demand is translating into shipments and margins. Ciena Expected to Post Quarterly Earnings Negative Sentiment: Supply constraints remain a key execution risk. Delays in fulfilling strong demand could limit near-term revenue recognition and offset otherwise favorable AI and cloud trends. Ciena Stock Ahead of Q3 Earnings: Buy, Sell, or Wait for the Results? Negative Sentiment: Despite its growth outlook, Ciena trades at a demanding valuation, increasing the risk of profit-taking or a sharp reaction if earnings, guidance or backlog conversion fall short of elevated investor expectations. Is AI Network Demand Rewriting Ciena’s Story? Ciena Company Profile (Free Report)
Ciena Corporation (NYSE: CIEN) is a global supplier of telecommunications networking equipment, software and services. The company develops high-capacity optical transport systems and packet-optical platforms that enable service providers, cloud operators and large enterprises to build, manage and scale their networks. Ciena’s product portfolio includes coherent optical solutions, packet networking platforms and a suite of network automation software designed to optimize bandwidth, reduce latency and simplify network operations.
In addition to hardware offerings, Ciena provides professional services and support, including network design, implementation and ongoing maintenance.
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ION Network nasadí WL6e od Ciena na nový podmořský kabel ICS1 mezi Jakartou a Singapurem. Ciena ve fiskálním 2. čtvrtletí rozšířila WL6e na 110 zákazníků a tržby z optických sítí vzrostly na 1,1 miliardy USD.
Key Takeaways Ciena's WL6e will power ION Network's new 2,000-kilometer ICS1 cable linking Jakarta and Singapore.ICS1 is designed for up to 24 Tb/s end-to-end capacity, with total capacity expected to reach 288 Tb/s.Ciena expanded WL6e to 110 customers as optical networking revenue climbed to $1.1 billion in fiscal Q2. Indonesia’s rapidly expanding digital economy is creating an urgent need for high-capacity, resilient connectivity. As cloud computing, AI, data centers, streaming and digital services drive up bandwidth consumption, network operators are investing heavily in submarine cables and advanced optical infrastructure. Against this backdrop, ION Network’s deployment of Ciena Corporation (CIEN - Free Report) WaveLogic 6 Extreme (WL6e) on its new ION Cable System 1 (ICS1) represents an important opportunity for both companies.
ION Network is deploying WL6e on ICS1, a new submarine cable spanning more than 2,000 kilometers between Jakarta and Singapore via submarine and protected terrestrial routes in Sumatra. The network will run on Ciena’s 6500 platform, supporting wavelength services up to 1.2 Tb/s, while the broader system is designed for up to 24 Tb/s of end-to-end capacity. Across six cable segments using two fiber pairs, ION expects total capacity to reach 288 Tb/s. ICS1 is scheduled to go live toward the end of 2026.
The deployment also leverages Ciena’s Layer 0 control-plane capabilities, which should help ION improve service availability and operational efficiency. The move also strengthens Ciena’s position in the rapidly developing Southeast Asian optical networking market. Ciena previously partnered with ION Network, as the operator uses Ciena optical technology for its B3JS (Jakarta-Bangka-Bintan-Batam-Singapore) and BDMCS (Batam-Dumai-Medan) cable systems.
Moreover, WL6e adoption continues to broaden. In the fiscal second quarter, Ciena expanded WL6e to 110 customers, adding 20 new users. Ciena's optical networking revenue reached $1.1 billion, up from $774 million a year earlier. It also raised its fiscal 2026 revenue outlook to $6.3 billion (+/-$100 million), representing roughly 32% growth at the midpoint. However, competition in coherent optics remains intense, with vendors such as Nokia (NOK - Free Report) and others competing for carrier and hyperscaler spending.
Competition Heats Up in CIEN’s Optical MarketGrowth in optical networking and demand from AI and cloud customers is driving NOK. During the second quarter, AI and Cloud revenue more than doubled year over year while order intake reached €2.8 billion, reflecting broad demand across Optical Networks and IP Networks. Network Infrastructure delivered double-digit growth, supported by continued momentum in Optical Networks and IP Networks. The planned divestiture of the Fixed Wireless Access CPE business simplifies the portfolio and allows greater investment in higher-growth opportunities such as AI networking and optical technologies. Management noted that supply constraints continue to affect portions of the optical networking market, contributing to longer-term customer ordering patterns.
Corning Incorporated (GLW - Free Report) continues to strengthen its competitive position through innovation across optical connectivity, advanced glass and semiconductor applications. Corning is also expanding its GenAI optical portfolio with multicore fiber and high-density connectivity solutions that improve network capacity and reduce installation complexity. Secular demand for bandwidth, cloud computing and AI infrastructure continues to support Corning’s Optical Communications business. First-quarter Optical Communications sales increased 36% year over year, while segment net income rose 93%. The NVIDIA partnership includes plans to increase U.S. optical connectivity manufacturing capacity tenfold and expand domestic fiber production capacity by more than 50%.
CIEN Price Performance, Valuation and EstimatesShares of CIEN have gained a whopping 361.1% in the past year compared with the Communications - Components industry’s surge of 218.6%.
Image Source: Zacks Investment Research
CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 50.76, above the industry’s 40.46.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has remain unchanged over the past 60 days.
Image Source: Zacks Investment Research
CIEN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ciena ve 2. čtvrtletí zvýšila tržby o 40 % na 1,57 miliardy USD a zvedla výhled tržeb pro fiskální rok 2026 na 6,3 miliardy USD. Tahounem byl servisní segment, který rostl o 28 % meziročně.
Key Takeaways Ciena's service provider business grew 28% year over year and India revenues more than doubled on MOFN demand.Ciena raised fiscal 2026 revenue guidance to $6.3 billion ( /-$100 million) after Q2 revenues rose 40%. Ciena faces tougher optical competition as Cisco and Nokia expand their networking portfolio. Ciena Corporation’s (CIEN - Free Report) strengthening financial performance highlights the growing importance of managed optical fiber networks (“MOFN”) as artificial intelligence (“AI”) drives demand for high-capacity, low-latency connectivity.
In the last reported quarter, service provider business grew 28% year over year, with India emerging as a particularly strong market. Revenues from India more than doubled, driven by demand for MOFN deployments.
Service providers are increasingly partnering with cloud providers to deliver connectivity via MOFN across various countries. On the last earnings call, Ciena noted that service providers are benefiting from renewed investments in optical infrastructure after years of relatively limited spending. According to management, service providers had underinvested in optical networks for roughly five years while focusing heavily on 5G investments.
India remains an important market for MOFN deployments, but Ciena believes the opportunity extends well beyond India as hyperscalers face challenges in building networks everywhere, particularly across different countries and last-mile markets. Regulatory considerations also make partnerships with service providers strategically important.
As demand for high-speed connectivity continues to expand, Ciena appears well-positioned to drive more revenues from its service provider segment. With second-quarter fiscal 2026 revenues rising 40% year over year to $1.57 billion and backlog reaching $7.7 billion, Ciena entered the second half with significant demand visibility. The company also lifted its fiscal 2026 revenue guidance to $6.3 billion (+/-$100 million), implying 32% growth at the midpoint.
However, the opportunity is unfolding in an intensely competitive market. Ciena faces tough competition from the likes of Cisco Systems (CSCO - Free Report) as well as Nokia (NOK - Free Report) .
Mapping the Competitive TerrainNokia’s Infinera buyout has reinforced its optical networking portfolio. In the second quarter of 2026, revenues from Optical Networks surged 20% year over year, buoyed by demand from AI and cloud customers. Demand from telecom customers investing in transport infrastructure was another driver. AI & Cloud segment revenues more than doubled year over year in the second quarter of 2026, reaching €446 million. Management also noted that its €2.8 billion AI and cloud order intake was weighted toward optical, highlighting continued hyperscale-driven demand.
Nokia is also seeing demand for both data-center interconnect and scale-across applications, improving its position in the expanding optical networking market.
Cisco is benefiting from broader optical demand as well, with Acacia receiving more than $1 billion in orders in the fourth quarter of fiscal 2026. Service provider and cloud orders surged 95% year over year, while telco orders increased more than 30%.
The company is also gaining share in the MOFN market. Cisco secured a hyperscaler design win for a managed optical fiber network that uses its line-system technology and supports digital coherent optics to operate directly in third-party equipment. Management highlighted the win as strategic, noting that it positions Cisco as an alternative supplier to an “incumbent competitor” and could potentially “disrupt” conventional MOFN delivery.
CIEN Price Performance, Valuation and EstimatesShares of CIEN are up 7.1% in the past month compared with Communications - Components industry’s 17.2% growth.
Image Source: Zacks Investment Research
CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 45.24, slightly above the industry’s 44.28.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has been unchanged over the past 60 days.
Image Source: Zacks Investment Research
CIEN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ciena zvýšila nevyřízené zakázky o více než 600 milionů USD na 7,7 miliardy USD a zvedla výhled tržeb pro fiskální rok 2026 na 6,3 miliardy USD ±100 milionů.
Key Takeaways Ciena's backlog rose over $600M sequentially to $7.7B, boosting visibility into 2027 revenue.About $6.4B of the backlog is hardware, with roughly 80% due for delivery over the next 12 months.CIEN raised fiscal 2026 revenue guidance to $6.3B plus minus $100M, implying about 32% growth at the midpoint. Ciena Corporation (CIEN - Free Report) is witnessing strong demand and a growing backlog, which is providing increased visibility into future revenue. In the second quarter of fiscal 2026, Ciena’s backlog increased by more than $600 million sequentially to $7.7 billion, and the company expects it to exit fiscal 2026 at an even higher level. On the last earnings call, management highlighted that the combination of robust order flows, customer collaboration, a growing services business and high-quality backlog provides an excellent view for fiscal 2027. Importantly, about $6.4 billion of the backlog is hardware, with roughly 80% expected to be delivered over the next 12 months, supporting confidence in how the backlog can translate into revenue.
Looking ahead, Ciena expects demand to remain strong as hyperscalers continue expanding capital expenditures into fiscal 2027 and beyond, with a larger share of spending expected to be directed toward network infrastructure. Service providers are also reinvesting in optical infrastructure, while managed optical fiber networks are creating additional opportunities. Ciena expects these service-provider opportunities to be multiyear and durable.
At the same time, AI-driven requirements for high-capacity, low-latency connectivity are supporting demand across traditional WAN markets and data center-related applications.
New product deployments could further support revenue growth. Ciena’s RLS Hyper-Rail platform has secured its first multi-rail order from a leading hyperscaler, with the deployment expected to begin in fiscal 2027. Management said similar engagements with major hyperscalers and service providers are progressing well, with opportunities expected to provide linear growth over the next few years. Hyper-Rail is also expected to generate a meaningful revenue increase in fiscal 2027.
Ciena expects DCOM to remain a multiyear application, while its Nubis portfolio and other interconnect opportunities are positioned for growth in the coming years. With backlog expected to continue increasing, ongoing customer deployments and multiple product opportunities moving toward broader adoption, Ciena’s current order momentum provides a stronger foundation for revenue visibility into fiscal 2027.
For third-quarter fiscal 2026, management expects revenues of $1.625 billion (+/- $50 million). The company also raised its fiscal 2026 revenue outlook to $6.3 billion (+/-$100 million), representing roughly 32% year-over-year growth at the midpoint.
Taking a Look at CIEN’s CompetitorsArista Networks (ANET - Free Report) is well-positioned as cloud, AI and enterprise customers upgrade high-speed Ethernet networks. Demand spans AI fabrics, core data centers, campus and routing, aided by a stronger supply chain and deeper software automation. New AI fabric platforms, including liquid-cooling options and scale-across capabilities, support next-generation AI clusters, while campus recognition shows traction beyond hyperscale cloud. For the third quarter of 2026, management expects revenues to be approximately $3.3 billion, driven by healthy growth momentum and solid demand trends.
Cisco Systems, Inc. (CSCO - Free Report) is seeing broad-based demand, with third-quarter fiscal 2026 revenue of $15.8 billion up 12% year over year. Total product orders rose 35% and networking product orders grew more than 50%, helped by a campus refresh and data center switching orders up more than 40%. For the fourth quarter of fiscal 2026, the company expects revenues of $16.7 billion to $16.9 billion. For fiscal 2026, management raised its outlook to revenue of $62.8 billion to $63.0 billion. Cisco also announced a restructuring plan to reallocate resources toward silicon, optics, security and AI, and expects up to $1 billion of pretax charges, including roughly $450 million in the fourth quarter of fiscal 2026, with the remainder in fiscal 2027.
CIEN Price Performance, Valuation and EstimatesShares of CIEN have surged 387.2% in the past year compared with the Communications - Components industry’s growth of 222.1%.
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CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 56.63, above the industry’s 41.51.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
CIEN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ciena ve 2. čtvrtletí fiskálního roku 2026 zvýšila tržby na rekordních 1,57 miliardy USD, meziročně o 40 %, a zvýšila výhled na fiskální rok 2026. Nokia zároveň zvýšila výhled růstu pro AI a síťovou infrastrukturu.
Key Takeaways Ciena and Nokia are benefiting from rising AI-driven demand for networking infrastructure.Ciena reported record revenues, expanded margins and raised its fiscal 2026 outlook.Nokia raised its AI and Network Infrastructure growth outlook as optical and IP demand accelerated. Ciena Corporation (CIEN - Free Report) and Nokia (NOK - Free Report) are benefiting from the rapid adoption of artificial intelligence (AI), which is driving strong demand for high-speed networking infrastructure. As hyperscalers and service providers expand AI deployments, both companies are strengthening their optical networking, routing and switching portfolios to support higher-capacity, low-latency connectivity. Ciena is leveraging its broad networking portfolio and deep customer relationships, while Nokia is expanding its AI and cloud business through optical and IP networking solutions.
Both companies are also introducing new AI-focused networking technologies and increasing investments to capture the growing opportunity. Ciena continues to expand its AI-driven portfolio with solutions such as RLS Hyper-Rail and DCOM, while Nokia has launched next-generation hyperscale optical solutions and AI-ready mobile networking products, alongside raising its Network Infrastructure growth outlook.
Let’s analyze their fundamentals, growth opportunities, market challenges and valuation to assess which one presents a stronger investment opportunity.
The Case for CIENCiena is benefiting from robust AI-driven demand for networking infrastructure, supported by its technology leadership, diversified product portfolio and long-standing customer relationships. In the second quarter of fiscal 2026, the company reported record revenues of $1.57 billion, up 40% year over year. Adjusted gross margin expanded to 44.9%, while adjusted earnings per share climbed to $1.64, nearly four times the prior-year level. Management stated that these results were delivered despite ongoing supply constraints. Backed by a growing backlog and offerings spanning networking systems, interconnects, software and services, Ciena remains well positioned to address rising connectivity needs across wide area networks and data centers.
The company continues to benefit from increasing investments by hyperscalers and service providers in networking infrastructure. Management indicated that hyperscalers have expanded their capital expenditure plans for 2026, with further investments expected beyond 2027, while service providers are resuming spending on optical infrastructure after a prolonged slowdown. Demand is being fueled by AI applications requiring high-capacity, low-latency and high-speed connectivity for model training, data ingestion and inference. Ciena expects these trends to significantly expand its addressable market to nearly $50 billion by 2029, covering both traditional WAN opportunities and fast-growing data center networking markets.
Ciena is further strengthening its competitive position through new product adoption and expanding customer engagements. The company secured the industry's first multi-rail order for its RLS Hyper-Rail platform from a leading hyperscaler and is actively working with additional hyperscalers, neoscalers and service providers that have shown strong interest in the solution. Its Data Center Out-of-Band Management (DCOM) platform drove 88% year-over-year growth in the Routing and Switching business, while Ciena also secured orders from a second hyperscaler, progressed qualifications with a third and won a major contract for coherent modules.
Demand for its 400G and 800G pluggables remains strong, with management expecting pluggable revenues to more than double from 2025. Customer collaboration is also increasing, as clients engage earlier in network design, helping shape Ciena's product roadmap and improving demand visibility. During the quarter, direct cloud customer revenues increased 70% year over year, service provider revenues rose 28%, India service provider revenues more than doubled and backlog expanded by more than $600 million sequentially to $7.7 billion, providing visibility into fiscal 2027.
The favorable demand environment has also strengthened Ciena's financial outlook. The adjusted operating margin improved to 19.5%, free cash flow reached $219 million and cash and investments totaled $1.4 billion. Management attributed the stronger profitability to engineering cost reductions, pricing optimization and disciplined working capital management. Reflecting solid first-half execution, the company raised its fiscal 2026 guidance and expects revenues of approximately $6.3 billion, plus or minus $100 million, an adjusted gross margin of 44.5%-45% and an adjusted operating margin of around 19%.
However, Ciena continues to face supply constraints as customer demand outpaces available component supply, requiring ongoing investments to secure manufacturing capacity and maintain execution. The company also operates in a highly competitive networking market and remains exposed to customer concentration risk.
The Case for NOKNokia is gaining from accelerating AI-driven demand and strengthening momentum across its network infrastructure business. The company reported 49% year-over-year growth in AI and cloud net sales, supported by strong demand from AI and cloud customers and €1 billion in new orders, primarily driven by Optical Networks. Management stated that rising AI adoption is increasing demand for data center interconnect, routing, switching and transport networks, creating a multi-year structural growth opportunity. Nokia also raised its AI and cloud addressable market growth outlook to a 27% CAGR for 2025-2028 from the previously expected 16%, while increasing its network infrastructure market growth outlook to 14% from 9%, reflecting stronger customer demand and higher AI-related infrastructure investments.
The company is also benefiting from expanding investments in Optical and IP Networks as AI deployments drive higher networking requirements. The company introduced a next-generation hyperscale multi-rail solution that significantly increases fiber density without expanding physical infrastructure and unveiled a new optical architecture designed to simplify deployments while reducing customers' total cost of ownership. Nokia also reported growing engagement with AI and cloud customers in switching and routing, secured new design wins, expanded its IP Networks pipeline and increased investments in optical manufacturing capacity. Reflecting these trends, management raised its 2026 Network Infrastructure growth outlook to 12-14% from 6-8% and increased its Optical and IP Networks growth forecast to 18-20% from 10-12%.
Nokia is strengthening its mobile network portfolio through AI-focused innovation and product development. The company introduced a new generation of AI RAN-ready radios featuring improved power efficiency and lower weight while continuing development of AI RAN solutions with NVIDIA, with field trials expected by year-end. Management also highlighted strong customer demand for cloud-native core software, new security capabilities and end-to-end automation as operators modernize their networks. At the same time, Nokia expects AI-related design wins in IP networking to translate into additional orders over the coming quarters, supporting future growth opportunities.
However, Nokia continues to face supply constraints as AI-related demand exceeds available capacity. Management noted that semiconductor supply limitations and the need to expand optical manufacturing capacity remain challenges as the company scales production. The company is investing in manufacturing capabilities, supply chain expansion and additional production capacity to capture growing demand, but acknowledged that the broader optical ecosystem continues to experience more demand than supply.
Nokia continues to face weakness in parts of its traditional networking business. Fixed Networks sales declined 13% in the quarter due to the company's strategy of prioritizing higher-margin products, while IP Networks growth was partly offset by softness in non-AI customer segments. Management also expects continued headwinds in the customer premises equipment business as it remains disciplined in focusing on long-term profitable opportunities, while describing the overall telecom market as relatively flat.
CIEN Shares vs. NOKOver the past year, CIEN shares have soared 393.5% while Nokia stock has surged 139.4%.
Image Source: Zacks Investment Research
Valuation for CIEN & NOKIn terms of Price/Book, CIEN shares are trading at 20.48X, higher than NOK’s 2.6X.
Image Source: Zacks Investment Research
How Do Zacks Estimates Compare for CIEN & NOK?Analysts have significantly revised their earnings estimates upward for CIEN’s bottom line for the current year.
Image Source: Zacks Investment Research
For NOK, there have been no revisions for the current year.
Image Source: Zacks Investment Research
CIEN or NOK: Which Stock to Bet on?CIEN sports a Zacks Rank #1 (Strong Buy) at present, while NOK has a Zacks Rank #3 (Hold). Consequently, in terms of Zacks Rank and valuation, CIEN seems to be a better pick at the moment.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Ciena vykázala rekordní tržby za 2Q fiskálního 2026 ve výši 1,57 mld. USD, meziročně +40 %, a upravené EPS vzrostlo na 1,64 USD. Backlog se zvýšil o více než 600 mil. USD na 7,7 mld. USD a firma zvedla výhled na fiskální 2026.
Key Takeaways Ciena posted record Q2 fiscal 2026 revenue of $1.57B, up 40%, with adjusted EPS rising to $1.64. CIEN's backlog grew by more than $600M to $7.7B, providing visibility into 2027.Ciena raised fiscal 2026 revenue and margin guidance as AI demand boosts networking infrastructure spending. Ciena Corporation’s (CIEN - Free Report) shares have jumped a whopping 494.6% in the past year, outperforming the Zacks Computer & Technology sector and the Zacks Communication - Components industry, which gained 37.6% and 321.4%, respectively. The S&P 500 composite is up 25.6% over the same time frame. The company’s shares have surged 97.4% in the past six months.
The company has also outpaced its peers, Corning Incorporated (GLW - Free Report) , Arista Networks, Inc. (ANET - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . GLW, ANET and CSCO have climbed 276.9%, 70.1% and 77.7%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Ciena is well poised to benefit from AI-led demand for optical networking across cloud and service providers, along with a growing backlog, despite ongoing supply woes. Expanding bandwidth needs, rising data center interconnect activity and solid uptake of coherent optical technologies also bode well.
Let us take a closer look at CIEN’s fundamentals, key growth drivers, competitive strengths and potential risks to determine whether the stock remains an attractive investment.
Key Factors to ConsiderCiena is benefiting from strong AI-driven demand for networking infrastructure, supported by its technology leadership, deep customer relationships and broad product portfolio. The company generated record second-quarter fiscal 2026 revenue of $1.57 billion, up 40% year over year, while adjusted gross margin expanded to 44.9% and adjusted earnings per share nearly quadrupled to $1.64. Management stated that these results were achieved despite operating in a supply-constrained environment. A growing backlog, fueled by AI-related demand from cloud and service provider customers, along with the company’s portfolio spanning systems, interconnects, software and services, positions Ciena to address connectivity requirements across wide area networks and data centers.
The company is seeing expanding opportunities as hyperscalers and service providers increase investments in networking infrastructure. Management noted that hyperscalers have raised their 2026 capital expenditure plans with continued expansion expected beyond 2027, while service providers are also resuming investments in optical infrastructure after several years. Demand is being driven by the need for high-capacity, low-latency and high-speed connectivity for AI workloads, including model training, data ingestion and inference. The company believes these trends will expand its addressable market to approximately $50 billion by 2029, covering both traditional WAN markets and high-growth opportunities in and around data centers.
Ciena continues to strengthen its position with new product adoption and customer wins. The company announced the industry's first multi-rail order for its RLS Hyper-Rail platform from a leading hyperscaler, validating demand for the solution. It is also engaged with additional hyperscalers, neoscalers and service providers that have shown stronger-than-expected interest. Meanwhile, its Data Center Out-of-Band Management (DCOM) solution contributed to 88% year-over-year growth in the Routing and Switching segment. The company also secured orders from a second hyperscaler for DCOM, advanced qualifications with a third hyperscaler and won a major hyperscaler contract for its coherent modules. Demand for its 400G and 800G pluggables remains strong, and Ciena expects pluggable revenue to more than double from 2025.
Also, the company is benefiting from customer collaboration and expanding adoption of its technology portfolio. Management highlighted that customers are increasingly engaging the company early in designing new network architectures, helping shape its product roadmap while improving visibility into future demand. The company believes this collaborative approach strengthens its competitive position and supports long-term growth. During the fiscal second-quarter 2026, direct cloud customer revenue increased 70% year over year, while service provider revenue rose 28%, with India service provider revenue more than doubling due to strong managed optical fiber network deployments. The backlog increased by more than $600 million sequentially to $7.7 billion, providing visibility into 2027.
Image Source: Zacks Investment Research
The strong demand environment also supported improved financial performance and a higher outlook. Adjusted operating margin reached 19.5%, free cash flow totaled $219 million and cash balance stood at $1.4 billion. Management attributed margin improvement to engineering cost reductions, pricing optimization and disciplined working capital management. Based on first-half execution, Ciena raised its fiscal 2026 guidance and expects revenue of approximately $6.3 billion, plus or minus $100 million, with an adjusted gross margin of 44.5% to 45% and an operating margin of around 19%.
However, Ciena continues to face supply constraints as demand exceeds available component supply. Management stated that the imbalance between supply and demand persists across the industry, requiring continued investments with suppliers to secure manufacturing capacity and supply availability. The company also increased operating expense guidance to support supply security and higher variable compensation, reflecting the resources needed to meet growing customer demand.
CIEN’s ValuationCIEN trades at a forward 12-month price-to-earnings (P/E) of 61.45X, above the industry’s 44.68X. CSCO, GLW and ANET trade at a forward 12-month P/E of 29.78X, 51.66X and 50.84X, respectively.
Image Source: Zacks Investment Research
CIEN’s Upward EstimatesThe Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has been revised upward over the past 30 days.
Ciena a Telefónica Deutschland dokončily konceptuální test automatizace sítě pomocí AI prostřednictvím Blue Planet AI Studio. Integrace do stávajících workflow má podpořit orchestraci služeb a růst v enterprise 5G.
Key Takeaways Ciena and Telefonica Deutschland completed an AI-driven network automation PoC using Blue Planet AI Studio.CIEN integrated AI into existing operational workflows to support multi-domain service orchestration.Ciena sees AI and enterprise 5G growth potential, while Nokia and Cisco intensify competition. AI is becoming a core component of network operations in the telecommunications industry. As CSPs roll out increasingly sophisticated 5G services, the operational complexity associated with designing, provisioning and managing these services continues to rise. Against this backdrop, the successful proof of concept (PoC) between Telefónica Deutschland (TELFY - Free Report) and Blue Planet, a division of Ciena Corporation (CIEN - Free Report) , demonstrates how AI-driven automation can transform network operations while strengthening Ciena's growth prospects.
The Blue Planet division was established from the 2015 Cyan Networks acquisition, integrating Cyan’s software with Ciena’s SDN/NFV controllers to develop an open, multi-vendor network automation platform. This platform was later improved through acquisitions like Packet Design and Centina for advanced analytics and closed-loop automation.
The PoC employed Blue Planet AI Studio, an OSS-native platform that allows the development and deployment of AI agents directly within operational workflows. Instead of functioning as an isolated AI experiment, the platform was integrated into Deutschland's existing Multi-Domain Service Orchestration framework. The successful deployment showcases several competitive advantages for CIEN, which has steadily expanded its software portfolio via Blue Planet. By advancing AI-driven network orchestration, the collaboration enhances Ciena's software growth opportunities, customer retention and exposure to the rapidly growing enterprise 5G market.
Ciena is already benefiting from strong investments in AI infrastructure, particularly from hyperscale cloud providers building massive data centers. AI-driven network slicing complements this trend by creating another avenue for growth within telecom networks. However, heavy investments by rivals such as Nokia (NOK - Free Report) and Cisco Systems (CSCO - Free Report) in AI-driven network automation may limit Ciena's pace of monetizing its technological edge.
Competitive Woes in the AI-Led Networking Space Temper CIENNOK benefits from a broad 5G IP portfolio, an expanding enterprise business and growing opportunities in AI-driven networking. Demand from AI and cloud customers supported IP Networks growth in first-quarter, while Nokia launched an AI Networking Innovation Lab to accelerate development of next-generation AI-native data center networking solutions alongside ecosystem partners. The initiative expands its presence in a structurally attractive infrastructure market and strengthens its position in AI-driven connectivity. In June, Nokia, t3 Broadband and Aureon partnered to deploy a hyperscale-class AI connectivity network using ultra-high-capacity optical technology, enabling high-speed, reliable data transmission to support the rising demand for AI and cloud infrastructure.
Cisco continues to expand AI data center offerings, including Nexus innovations, intelligent packet flow and configurable AI pods, which can sustain a higher mix in networking through fiscal 2026. In June, Cisco introduced Cisco Cloud Control, a unified platform that enables human operators and AI agents to collaboratively manage and secure critical IT infrastructure. The platform supports natural-language application and agent creation, integrates with third-party tools and enhances cybersecurity through innovations such as Live Protect, Quantum Ready Assessments and Cisco IQ, helping organizations operate securely at AI-driven speed and scale. Furthermore, its rich partner base supports expansion in AI infrastructure and security.
CIEN Price Performance, Valuation and EstimatesShares of CIEN have gained a whopping 451.5% in the past year compared with the Communications - Components industry’s surge of 304.8%.
Image Source: Zacks Investment Research
CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 57.86, above the industry’s 43.98.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has been revised upward over the past 60 days.
Image Source: Zacks Investment Research
CIEN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AI boom se přesouvá do optiky: Corning, Amphenol a Ciena získávají víceletou poptávku po optických vláknech, konektorech a propojení datových center. Corning navíc uzavřel dvě významné dohody s NVIDIA a Amazonem.
The AI build-out conversation tends to start and stop with chips. But the companies quietly landing multi-year, multi-billion-dollar contracts right now aren't making semiconductors—they're making the glass, connectors, and routing systems that hold the entire data center ecosystem together.
Lucas Downey of TradeSmith sees the AI infrastructure stack as five distinct layers: land and site development, power, cooling, compute, and memory, and finally, networking and connectivity.
That last layer—fiber, optics, and high-speed interconnects—is where he's focused, and where he believes analysts are still playing catch-up.
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The Shift From Copper to GlassThe transition driving demand here is straightforward: data centers are moving away from copper wiring and toward optical links made of glass and fiber. Optical connections carry data at the speed of light, generate less heat than copper, and reduce cooling costs.
For hyperscalers running massive AI workloads, those efficiency gains compound quickly.
Downey estimates AI infrastructure capital expenditure is approaching $1 trillion globally. The optical networking segment alone is seeing supply bottlenecks—there aren't enough components to meet demand—which is exactly the kind of constraint that tends to reward established manufacturers with the capacity to scale.
Amphenol: Connectors at the Core of Every RackAmphenol Today
$166.68 +2.96 (+1.81%)
As of 02:15 PM Eastern
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52-Week Range$95.19▼
$168.75Dividend Yield0.60%
P/E Ratio47.93
Price Target$178.07
The first name Downey highlights is Amphenol Corporation NYSE: APH, one of the world's largest manufacturers of electronic connectors and interconnect systems. Amphenol isn't making the lasers or chips—it's making the physical connections between every component inside a data center: the racks, the servers, the assemblies. Every nanosecond of latency matters in high-speed AI workloads, and every connection counts.
The company delivered one of the biggest earnings beats of the recent season, with revenue of $7.62 billion, well above the Street's estimate of $7.08 billion. Earnings per share (EPS) also beat, and guidance came in above expectations. Downey notes that the magnitude of this latest beat is what's drawing renewed attention from analysts, who he says are still revising numbers higher.
Amphenol carries roughly a $200 billion market cap and has posted double-digit revenue and earnings growth projections extending out to 2028—making it, in Downey's view, a core position in a theme that isn't slowing down.
Corning: The Fiber Backbone of the AI EraThe most widely recognized name on the list is Corning Incorporated NYSE: GLW, a company that has been manufacturing specialty glass for over 170 years and is now at the center of the next generation of optical fiber infrastructure.
Corning Today
$251.18 +30.13 (+13.63%)
As of 02:15 PM Eastern
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52-Week Range$51.32▼
$254.22Dividend Yield0.45%
P/E Ratio119.73
Price Target$182.62
Corning recently secured two significant hyperscaler deals. The first is a partnership with NVIDIA Corporation NASDAQ: NVDA to expand U.S.-based optical connectivity manufacturing—Corning expects to grow its U.S. optical connectivity capacity 10x and U.S. fiber capacity by more than 50% under the agreement. The second is a multi-billion-dollar deal with Amazon.com NASDAQ: AMZN for U.S. fiber manufacturing, announced earlier this month.
At a J.P. Morgan conference, Corning's management projected its sales run rate reaching $20 billion by year-end, $30 billion by 2028, and $40 billion by 2030. On the earnings side, Downey points to EPS slated around $3.19 this year, accelerating to $4.21 next year and $5.75 in 2028. He expects those numbers to be revised higher as more hyperscalers follow NVIDIA and Amazon to the table.
The stock has already had a substantial run, and the analyst consensus has been slow to keep pace. Downey draws a direct parallel to Micron Technology NASDAQ: MU, where analysts persistently underestimated the demand cycle before eventually catching up with a wave of estimate upgrades. He sees the same dynamic unfolding in optical.
Ciena: The Traffic Director of the Optical NetworkCiena Today
$480.63 +1.13 (+0.24%)
As of 02:15 PM Eastern
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52-Week Range$76.89▼
$637.51P/E Ratio160.08
Price Target$530.56
The third name is Ciena Corporation NYSE: CIEN, which Downey describes as the intelligent routing layer of the optical ecosystem. Where Amphenol handles physical connections, and Corning manufactures the fiber cables, Ciena optimizes how data travels through those cables—routing light-speed signals, managing bandwidth, and reducing congestion across distributed AI clusters with thousands of simultaneous data packets in motion.
Ciena's recent earnings reflected the same demand story: EPS came in at $1.64 against estimates of $1.46, revenue beat consensus, and the company raised its full-year guidance to $6.3 billion—above the prior estimate of $6.15 billion—while noting margin expansion.
The stock has pulled back after a roughly 500% one-year run, which Downey attributes to seasonal mechanics—Russell index reconstitution and quarter-end rebalancing—rather than any change in fundamentals. He sees the pullback as a buying opportunity, with full-year 2026 EPS estimates around $6.50, accelerating to $9.65 the following year and $14.28 in 2028.
Following the Earnings, Not the HeadlinesThe broader framework Downey applies across all three names is the same: track where earnings estimates are going, not where the stock price has already been. When a company is landing multi-year deals with the world's largest cloud providers, the official estimates tend to lag reality. Analyst upgrades follow contracts, and stock re-ratings follow upgrades.
Near-term volatility—whether from AI bubble headlines, sector rotations, or index rebalancing—doesn't change the underlying demand picture. The data center build-out has committed capital stretching to 2030 and beyond. For investors willing to look past the noise, the optical layer may be the quietest opportunity left in an AI trade that's anything but quiet.
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