Ciena Tops Q4, Guides Higher for 2026 as Analysts Boost Targets and Stock Falls

Overview

• Fourth-quarter revenue rose to $1.35 billion, up about 20% year over year, with adjusted EPS of $0.91, both beating estimates.
• Ciena guided first-quarter revenue to $1.35–$1.43 billion and fiscal 2026 revenue to $5.7–$6.1 billion with adjusted gross margin of 42%–44%, noting a 2Q26 margin dip from higher 800ZR mix and improvement in the second half.
• The company reported $7.8 billion in orders for the year and exited fiscal 2025 with roughly $5 billion in backlog, with initial scale-across deployments beginning in the fourth quarter.
• Rosenblatt raised its price target to $305 and BofA to $260, maintaining Buy ratings and increasing earnings forecasts following the results and guidance.
• Shares fell about 10% Friday after giving up Thursday’s rally to an intraday 24-year high, reflecting a mixed reaction to the updates.