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Ciena (CIEN) shares surged 7% on strong third-quarter results and raised forecasts

2026-09-03 20:12:12
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Key Highlights

Ciena (CIEN) shares surged 7% to $379.85 in pre-market trading, helped by its third-quarter results that exceeded market expectations. The company reported adjusted earnings per share (EPS) of $2.11, a year-on-year increase of 215%, well exceeding the market consensus forecast of $1.73. Quarterly revenue rose 37% to $1.67 billion, beating analysts 'forecasts of $1.64 billion.

The company raises its full-year outlook

Ciena raised its full-year revenue guidance for fiscal year 2026 to US$6.42 billion, with a median forecast of a year-on-year increase of 35%. Fourth-quarter revenue guidance was $1.75 billion, with a fluctuation of $50 million, above the median expected level. CEO Gary Smith attributed the strong performance to artificial intelligence demand, saying "AI continues to drive compound interest growth in network investment" and emphasized Ciena's position as the "only provider of pure optical systems and interconnections."

Recent Stock Price Trend

Despite its strong performance this quarter, CIEN shares have experienced volatility in the past few months. As of Wednesday's close, the stock was up 51% year-to-date, but still below its June high of 43%. Shares fell 1.7% before the close of trading on Wednesday. Chief Financial Officer Marc Graff pointed out that enhanced supply chain capabilities and improved operational efficiency allow the company to "accelerate profitability" in the future. Non-GAAP operating profit margin expanded significantly from 10.7% in the same period last year to 22.5% in the third quarter.

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