Ciena sinks despite crushing Q2 estimates and raising full-year outlook
Ciena Corp. shares are plunging Thursday despite the network technology company posting Q2 earnings results that beat Wall Street consensus estimates and raising its full-year outlook.
Ciena stock has surged so far this year, gaining over 150% year to date including today’s drop.
Key numbers:
Revenue of $1.57 billion (compared to analyst estimates of $1.50 billion).
Earnings per share of $1.64 (estimate: $1.46).
2026 full-year revenue guidance of $6.3 billion (estimate: $6.18 billion).
Revenue grew 40% year over year. That growth was anchored by the company’s core Optical Networking segment, which brought in $1.1 billion, while its Routing and Switching division nearly doubled to $174.2 million.
Management also raised its full-year fiscal 2026 revenue guidance to $6.3 billion (plus or minus $100 million). This marks a notable upgrade from its previous full-year target range of $5.9 billion to $6.3 billion. For the upcoming fiscal third quarter, the company anticipates revenues of $1.625 billion, exceeding the Wall Street’s expectations of $1.58 billion.
“Today’s results reflect the strength of our portfolio, the power of our business model, and disciplined execution in a dynamic supply environment,” Gary Smith, president and CEO of Ciena, said in a statement.
