Ciena reported fiscal second quarter 2026 revenue of $1.57 billion, up 40% from $1.13 billion in the same quarter a year ago, as accelerating investment in AI infrastructure, cloud networking, and high-capacity transport networks boosted demand across its portfolio. The company posted GAAP diluted earnings per share of $1.49 and adjusted EPS of $1.64, compared with $0.06 and $0.42, respectively, in the year-ago period. Gross margin expanded to 44.9% on a non-GAAP basis, while adjusted operating margin increased to 19.5%.
The strongest growth came from Ciena’s Networking Platforms segment, which generated $1.27 billion in revenue, representing 81% of total sales. Optical Networking revenue climbed to $1.1 billion, up from $774 million a year earlier, while Routing and Switching revenue nearly doubled to $174 million. The results highlight growing demand for both long-haul optical transport and data center interconnect technologies as hyperscale operators continue to expand AI clusters and cloud infrastructure. Ciena also generated $487 million in operating cash flow during the first six months of fiscal 2026 and ended the quarter with more than $1.2 billion in cash and investments.
Reflecting continued momentum, Ciena raised its fiscal 2026 revenue outlook to $6.3 billion plus or minus $100 million, representing approximately 32% year-over-year growth at the midpoint. The company expects third-quarter revenue of approximately $1.625 billion and projected adjusted operating margins between 19% and 20%. CEO Gary Smith said Ciena’s strategy remains focused on high-speed connectivity across both wide area networks and emerging AI data center architectures, positioning the company to benefit from long-term AI-driven infrastructure investment cycles.
- Fiscal Q2 2026 revenue: $1.57 billion, up 39.5% year-over-year
- Adjusted EPS: $1.64, up from $0.42 a year ago
- Non-GAAP gross margin: 44.9%, up from 41.0%
- Adjusted operating margin: 19.5%, up from 8.2%
- Optical Networking revenue: $1.10 billion
- Routing and Switching revenue: $174.2 million
- Fiscal 2026 revenue guidance raised to $6.3 billion ± $100 million
- Two customers accounted for 34% of quarterly revenue
- Repurchased $83.1 million of common stock during the quarter
“Today’s results reflect the strength of our portfolio, the power of our business model, and disciplined execution in a dynamic supply environment,” said Gary Smith, president and CEO of Ciena. “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.”
