Ciena Reports Record Q3 Earnings Amid Strong AI and Data Center Demand
Ciena Corporation (NYSE: CIEN) reported record fiscal third-quarter results in 2026, with revenue rising 37% year over year to $1.67 billion. Adjusted operating margin reached a new high of 22.5%, and adjusted earnings per share surged by 215% to $2.11. The strong performance was driven primarily by increased demand for optical networking equipment in data centers and wide-area networks, fueled by AI workloads requiring faster connectivity. Ciena's backlog rose sequentially by $800 million to $8.5 billion as orders outpaced revenue conversion due to supply constraints and long lead times. Management expects the backlog to exceed $10 billion before fiscal year-end 2026 and anticipates continued demand into at least 2027. Looking ahead, Ciena forecasts at least 30% revenue growth in fiscal 2027, with total revenue expected between $8.3 billion and $8.4 billion. The company also expects operating margins to expand further to a range of 25%-27%, supported by continued momentum in optical networking, hyperscaler contracts, and data-center interconnect demand.
Tickers: $CIEN
Topics: AI demand data-center networking optical equipment revenue growth