Ciena Corporation Fiscal Q4 2025 Earnings Presentation Period ended November 1, 2025 December 11, 2025 © Ciena Corporation 2025. ll rights reserved. Proprietary Information. Forward-looking statements and non-GAAP measures You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission (SEC) filings, recent news, financial results, supplemental financial information, and other announcements. From time to time, we exclusively post ...

FOR IMMEDIATE RELEASE Ciena Reports Fiscal Fourth Quarter 2025 and Year-End Financial Results HANOVER, Md. - December 11, 2025 - Ciena Corporation (NYSE: CIEN) today announced financial results for its fiscal fourth quarter and year ended November 1, 2025. ® "Our record fiscal fourth quarter and full-year performance reinforces our position as the global leader in high-speed connectivity with an expanding role in the AI ecosystem," said Gary Smith, president and CEO, Ciena. "Looking ahead, we are confident ...

Core Viewpoint - Ciena Corporation is experiencing a significant upward trend in analyst price targets, reflecting growing optimism about its future performance and stock price appreciation [2][6]. Group 1: Price Target Trends - The average price target for Ciena has increased from $143.64 a year ago to $218.33 last month, indicating a strong positive shift in analyst expectations [4][6]. - Three months ago, the average price target was $196, showing a notable increase over the quarter, which highlights a positive shift in analyst sentiment [3]. - The recent upgrades, including a Zacks Rank 2 (Buy), suggest that analysts are increasingly optimistic about Ciena's earnings prospects [5][6]. Group 2: Competitive Position - Ciena Corporation is a global leader in networking systems, services, and software, competing with companies like Cisco Systems and Nokia in the telecommunications industry [1].

Core Viewpoint - Ciena (CIEN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Ciena's Earnings Outlook - Ciena is projected to earn $2.49 per share for the fiscal year ending October 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for Ciena has increased by 6.6%, reflecting a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Ciena's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's financial health and future growth potential by analyzing earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies trends in stock prices and earnings estimates, aiding investors in timing their stock purchases [5] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to identify stocks with high return potential, with 1 (Strong Buy) stocks averaging a +23.93% annual return since 1988 [7][9] - There are typically over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [8] Stock Highlight: Ciena Corporation - Ciena Corporation (CIEN) is a leading provider of optical networking equipment and services, currently rated 2 (Buy) with a VGM Score of B [11] - CIEN has a Momentum Style Score of A, with shares increasing by 3.3% over the past four weeks [11] - The Zacks Consensus Estimate for CIEN's fiscal 2025 earnings has risen by $0.01 to $2.49 per share, with an average earnings surprise of +13.9% [12]

Core Insights - Ciena Corporation is a global leader in networking systems, services, and software, focusing on high-speed internet and data service solutions [1] - The company is set to release its quarterly earnings on December 11, 2025, with Wall Street estimating earnings per share (EPS) at $0.77, reflecting a year-over-year increase of 40.7% [2][6] - Revenue projections for Ciena are approximately $1.29 billion, indicating a 14% increase from the previous year, driven by strong demand from cloud and service providers [3][6] Financial Metrics - Ciena's price-to-earnings (P/E) ratio is 215.86, and its price-to-sales ratio is 6.67, indicating a high valuation [4][6] - The company maintains a low debt-to-equity ratio of 0.09, reflecting conservative debt usage, and a strong current ratio of 3.28, highlighting good short-term financial health [4][6] - Ciena's enterprise value to sales ratio is 6.50, and its enterprise value to operating cash flow ratio is 37.61, reflecting its total valuation relative to sales and cash flow [5] Market Position - Ciena's key markets include cloud and service providers, which are crucial for its growth [1] - The company's divisions, including Blue Planet, Global Services, and Platform Software and Services, are expected to achieve substantial revenue gains [5]

Lumentum Conference Call Summary Company Overview - Lumentum is primarily an infrastructure provider focused on data centers, offering semiconductor components and systems to hyperscalers and data center operators [5][6][10] Core Business Segments - **Lasers and Transceivers**: Lumentum specializes in two main types of lasers used in data centers: Continuous Wave (CW) lasers and Externally Modulated Lasers (EMLs). The company predominantly manufactures EMLs, holding approximately 50% to 60% of the global EML market [9][10] - **Emerging Technologies**: The company is also exploring ultra-high power lasers for scale-up and scale-out applications within data centers [10] Market Dynamics - **Demand vs. Supply**: Lumentum is currently facing a supply-demand imbalance, estimating to be 30% behind demand by mid-2026 despite plans to increase capacity by 40% [18][19] - **Capacity Expansion**: The company is virtualizing its indium phosphide fabs to optimize production and meet increasing demand [20][21] Product Development and Trends - **200 Gig EMLs**: The company anticipates that 200 gig EMLs will constitute 10% of volumes in Q1 2026, increasing to 25% by Q4 2026, which will positively impact revenue and margins [22][25] - **Optical Circuit Switches (OCS)**: Lumentum sees significant growth potential in the OCS market, with expectations to grow from $10 million in Q1 to $100 million by Q4 2026 [38][40] Competitive Landscape - **Vertical Integration Risks**: While competitors are exploring vertical integration, Lumentum has opted to focus on components rather than integrated modules, which may mitigate risks associated with competition [16][17] - **Co-Packaged Optics**: The company views co-packaged optics as a growth opportunity, with expectations for material revenue contributions starting in the latter half of 2026 [46][50] Future Outlook - **Growth Drivers**: Lumentum anticipates strong contributions from OCS, scale-out, and scale-up optics in 2026, which are not yet reflected in current financial projections [64][65] - **Market Position**: The company believes its core business, particularly in EMLs and emerging technologies, positions it well for future growth, with optimism about the optics market resurgence [63][66] Key Takeaways - Lumentum is strategically positioned in the data center infrastructure market, focusing on lasers and transceivers, with a strong emphasis on EMLs - The company is addressing supply chain challenges while expanding capacity to meet growing demand - Future growth is expected from new product developments and market opportunities, particularly in OCS and co-packaged optics, indicating a positive outlook for the company in the coming years [64][65]

Core Insights - Ciena Corporation (CIEN) is set to report its fourth-quarter fiscal 2025 results on December 11, with earnings estimated at 76 cents per share, reflecting a 40.7% increase year-over-year, and revenues projected at $1.3 billion, indicating a 14% rise from the previous year [1] Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for Ciena's earnings remains unchanged over the past 60 days, with a projected revenue range for the fourth quarter between $1.24 billion and $1.32 billion [1][8] - Ciena has surpassed the Zacks Consensus Estimate in two of the last four quarters, with an average earnings surprise of 13.9% [2] Group 2: Key Drivers of Performance - The fiscal fourth-quarter performance is expected to be driven by strong demand across Cloud Provider and Service Provider segments, with direct Cloud Provider revenues increasing by 94% year-over-year in the fiscal third quarter [3] - Significant investments in AI by cloud providers are anticipated to contribute to revenue growth, with over $7 trillion projected to be invested globally in data centers, GPUs, power infrastructure, and AI models by 2030 [3] Group 3: Strategic Focus and Product Development - Ciena is prioritizing R&D in Coherent Optical Systems and Interconnects while scaling back on residential broadband investments, focusing on long-term opportunities in AI-driven traffic growth [4] - The company’s portfolio, including WaveLogic and RLS solutions, is recognized as an industry benchmark for AI-ready networks, positioning Ciena to capitalize on high-speed connectivity demand [5] Group 4: Recent Business Developments - Ciena secured a major North American AI infrastructure project, utilizing its RLS platform and WaveLogic 6 Nano 800G ZR technology, with revenues expected to grow significantly over the coming quarters [5] - Recent partnerships and upgrades, such as Fidium's launch of 400G wavelength services and Colt's deployment of a high-capacity network, highlight Ciena's technological advancements and market position [10][11] Group 5: Revenue Projections for Business Units - Blue Planet revenues are expected to surge by 46.3% year-over-year to $34.3 million, with Global Services and Platform Software and Services projected to reach $157.7 million and $114 million, reflecting year-over-year increases of 11% and 14.4%, respectively [7] - The interconnects portfolio is anticipated to double revenues in 2025, supported by strong demand for routing and switching solutions [6]

Core Viewpoint - Analysts forecast that Ciena (CIEN) will report quarterly earnings of $0.76 per share, reflecting a year-over-year increase of 40.7%, with anticipated revenues of $1.28 billion, marking a 14.1% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter, indicating stability in analysts' forecasts [2]. - Revisions to earnings estimates are crucial for predicting investor actions regarding the stock, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Forecasts - Analysts predict 'Revenue- Total Networking Platforms' at $979.35 million, indicating a year-over-year change of +14% [5]. - 'Revenue- Total Global Services' is expected to reach $166.99 million, reflecting a +17.6% change from the prior-year quarter [5]. - 'Revenue- Software and Services- Total (Platform + Blue Planet Automation)' is estimated at $138.53 million, showing a +12.5% change year-over-year [6]. - 'Revenue- Networking Platforms- Routing and Switching' is forecasted at $110.82 million, with a year-over-year change of +39.6% [6]. - 'Revenue- Networking Platforms- Optical Networking' is expected to be $875.87 million, indicating a +12.4% change from the year-ago quarter [7]. - 'Revenue- Products' is projected to reach $1.02 billion, suggesting a +14.5% year-over-year change [7]. - 'Revenue- Blue Planet Automation Software and Services' is likely to be $33.60 million, reflecting a +43% year-over-year change [8]. - 'Revenue- Platform Software and Services' is forecasted at $109.24 million, indicating a +9.7% change year-over-year [8]. - 'Revenue- Services' is expected to reach $256.19 million, with a year-over-year change of +10.6% [8]. Profit Estimates - Analysts predict 'Gross profit- Products' will reach $416.35 million, compared to $346.85 million reported in the same quarter last year [9]. - The consensus estimate for 'Gross profit- Services' stands at $127.54 million, contrasting with the year-ago figure of $113.18 million [9]. Market Performance - Ciena shares have shown returns of +1.2% over the past month, aligning with the Zacks S&P 500 composite's +1.2% change [9].

This networking company has proven to be a significantly better investment than Broadcom in 2025.Broadcom (AVGO +0.41%) has been gaining prominence in the artificial intelligence (AI) chip market thanks to its application-specific integrated circuits (ASICs). The custom AI processors designed by the company have helped it secure multibillion-dollar deals with hyperscalers and AI companies.That's not surprising, as these chips can help lower the operating costs of data centers while boosting performance when ...