Ciena Corp (CIEN) just reminded Wall Street why it's the go-to name in high-speed networking equipment. The company delivered a stellar fourth-quarter earnings beat on Thursday, sending analysts scrambling to update their models and raise price targets.
The telecom networking equipment and software services supplier reported quarterly revenue of $1.35 billion, up 20.3% from a year ago and comfortably ahead of the $1.29 billion analysts were expecting. But the real surprise came on the bottom line: adjusted earnings hit 91 cents per share, blowing past the 77-cent consensus estimate by nearly 20%.
The good news didn't stop there. Ciena issued guidance that suggests the momentum isn't slowing down anytime soon. For the current quarter, the company expects revenue between $1.350 billion and $1.430 billion, well above the $1.252 billion analysts had penciled in. The company also projects an adjusted gross margin of 43% to 44% for the quarter.
Looking at the full fiscal 2026, Ciena's guidance is even more eye-catching. The company forecasts revenue of $5.70 billion to $6.10 billion, compared to the analyst consensus of just $4.71 billion. That's a significant upside surprise that suggests strong underlying demand for the company's products.
"Our record fiscal fourth quarter and full-year performance reinforces our position as the global leader in high-speed connectivity with an expanding role in the AI ecosystem," said Gary Smith, president and CEO of Ciena. "Looking ahead, we are confident in our growth trajectory over the coming years, driven by durable demand from our cloud and service provider customers and a growing set of opportunities inside and around the data center."
The analyst community took notice. B of A Securities analyst Tal Liani maintained a Buy rating on Ciena and raised his price target from $200 to $260. Meanwhile, Rosenblatt analyst Mike Genovese also kept his Buy rating while boosting his price target from $175 all the way to $305.
Despite the strong results and optimistic outlook, Ciena shares slipped 1.8% to $238.00 in pre-market trading, which isn't unusual after a significant run-up heading into earnings.
