AI is in high demand! Optical communications giant Ciena (CIEN.US)'s performance and guidance exceeded expectations, and the stock price rose sharply before the market

The Zhitong Finance App learned that, benefiting from rising demand from cloud service providers and growing market opportunities in the field of artificial intelligence (AI) infrastructure, optical communication equipment manufacturer Ciena (CIEN.US) announced results for the fourth fiscal quarter that exceeded expectations.

Financial reports show that in the quarter ending November 1, Ciena's adjusted earnings per share reached 0.91 US dollars, which was significantly higher than the general market forecast of 0.77 US dollars; revenue increased 20% year over year to 1.35 billion US dollars, which also exceeded analysts' expectations of 1.29 billion US dollars. This strong performance was mainly due to the rapid growth of its optical networking business — the business's revenue increased from US$779.6 million in the same period last year to US$929.2 million.

Gary Smith, President and CEO of Ciena, said: “Our record fourth fiscal quarter and full year results solidify our position as a global leader in high-speed connectivity, while our role in the AI ecosystem is expanding.”

According to information, Ciena is a telecommunications equipment supplier focusing on optical transmission technology. The company produces fiber optic network equipment for cloud service providers to connect large data centers. As the construction of AI-dedicated data centers surges (43% of new data centers are expected to be dedicated to AI workloads), data center interconnect (DCI) bandwidth demand is expected to increase more than sixfold over the next five years, providing Ciena with a huge market opportunity.

Bank of America and Evercore ISI analysts said before CIENA earnings release that strong hyperscale demand, AI-driven and broader network demand are key growth engines for the company. They believe that continued active infrastructure investment will continue to boost revenue growth beyond expectations and support Ciena's double-digit revenue growth trajectory.

Looking ahead, Ciena gave optimistic performance guidelines. It is estimated that revenue for the first quarter of fiscal year 2026 will be between 1.35 billion and 1.43 billion US dollars, far higher than the market forecast of 1.25 billion US dollars; revenue for the full year of 2026 is expected to be in the range of 5.7 billion US dollars to 6.1 billion US dollars, which also exceeds analysts' forecasts of 5.53 billion US dollars.

Marc Graff, Chief Financial Officer of Ciena, stated, “This quarter's results fully reflect the company's momentum in a demanding market environment and our determination to abide by financial discipline. With continuously enhanced operating leverage, steady cash flow generation capabilities, and a good balance and liability situation, we are fully prepared to create greater value for our customers and shareholders in 2026.”

Smith added, “Looking ahead, we are confident about the company's growth trajectory, stemming from the continued steady demand for cloud services and operator customers, as well as the continuous emergence of new opportunities within and outside the data center.”

For the full year of fiscal year 2025, Ciena's revenue reached US$4.77 billion, up 19% from US$4.01 billion in fiscal year 2024; adjusted earnings per share increased from US$1.82 in the previous fiscal year to US$2.64.

The stock surged more than 9% before the market on Thursday after the earnings report was released. By the close of Wednesday, the company's stock price had risen 162% since this year, driven by strong performance and surging demand for AI and cloud computing bandwidth.