On Thursday, Ciena Corp. (NYSE:CIEN) reported sharply higher revenue and earnings for its fiscal third quarter of 2026, fueled by strong demand for optical networking products and significant operating leverage.

Revenue rose 37% year over year to $1.671 billion from $1.219 billion, beating the analyst consensus estimate of $1.633 billion.

GAAP diluted earnings per share jumped about 423% to $1.83 from 35 cents. Adjusted diluted EPS rose about 215% to $2.11 from 67 cents, exceeding the analyst consensus estimate of $1.73.

Optical Networking Drives Growth

Networking Platforms revenue increased about 44% to $1.356 billion from $941.4 million.

Optical Networking revenue climbed about 46% to $1.191 billion from $815.5 million. Routing and Switching revenue rose about 31% to $164.4 million from $125.9 million.

Platform Software and Services revenue increased about 10% to $98.6 million from $90 million. Blue Planet Automation Software and Services revenue declined about 17% to $23.2 million from $27.8 million.

Global Services revenue rose about 21% to $193.6 million from $160.2 million.

Ciena Margins Expand

Ciena’s adjusted gross margin expanded to 46.4% from 41.9%, while adjusted operating margin more than doubled to 22.5% from 10.7%.

GAAP net income surged about 430% to $266.4 million from $50.3 million.

Adjusted EBITDA increased 160.2% to $411.1 million from $158 million, while EBITDA rose to $349.9 million from $109.2 million.

Cash Flow Improves

Operating cash flow increased about 57% to $683.6 million during the first nine months of fiscal 2026, compared with $435 million a year earlier.

Ciena ended the quarter with $2.446 billion in cash and cash equivalents, up from $1.092 billion at the end of fiscal 2025.

Ciena Raises Full-Year Outlook

For the fiscal fourth quarter, Ciena expects revenue of $1.7 billion to $1.8 billion, compared with the analyst estimate of $1.702 billion.

The company expects an adjusted gross margin of 45%, plus or minus 50 basis points, and an adjusted operating margin of 20%, plus or minus 50 basis points.

Ciena raised its fiscal 2026 revenue outlook to $6.37 billion-$6.47 billion from $6.2 billion-$6.4 billion. The new range compares with the analyst consensus estimate of $6.336 billion.

CEO Gary Smith said AI-driven network investment continues to support demand for Ciena’s high-speed connectivity products.

CFO Marc Graff said expanding supply capacity, stronger business fundamentals and increased operating leverage position Ciena to accelerate earnings growth and pursue long-term opportunities.

Price Action

CIEN Stock Price: Ciena shares were trading 3.06% higher at $365.00 in Thursday’s premarket session, according to Benzinga Pro data.

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