Group 1 - Ciena Corp reported a 20.3% year-on-year revenue growth to $1.35 billion in the fourth quarter, exceeding analyst expectations of $1.29 billion [1] - The company achieved an adjusted EPS of 91 cents, surpassing the consensus estimate of 77 cents [1] - Ciena expects first-quarter revenue between $1.350 billion and $1.430 billion, higher than the analyst consensus estimate of $1.252 billion [2] Group 2 - For fiscal 2026, Ciena anticipates revenue of $5.70 billion to $6.10 billion, significantly above the $4.71 billion analyst consensus estimate [2] - The company projects an adjusted gross margin of 43%-44% for the first quarter and 42%-44% for fiscal 2026 [2] - CEO Gary Smith emphasized the company's leadership in high-speed connectivity and confidence in growth driven by demand from cloud and service provider customers [3] Group 3 - Following the earnings announcement, analysts adjusted their price targets for Ciena [4] - B of A Securities analyst Tal Liani raised the price target from $200 to $260 while maintaining a Buy rating [5] - Rosenblatt analyst Mike Genovese also maintained a Buy rating and increased the price target from $175 to $305 [5]

Core Insights - Ciena Corp reported a strong fourth-quarter performance with a revenue growth of 20.3% year-on-year, reaching $1.35 billion, surpassing analyst expectations of $1.29 billion [1] - The company also reported an adjusted EPS of 91 cents, exceeding the consensus estimate of 77 cents [1] - Ciena provided optimistic first-quarter revenue guidance of $1.350 billion to $1.430 billion, above the analyst consensus estimate of $1.252 billion [2] Financial Performance - The adjusted gross margin for the first quarter is expected to be between 43% and 44% [2] - For fiscal 2026, Ciena anticipates revenue between $5.70 billion and $6.10 billion, significantly higher than the $4.71 billion analyst consensus estimate [2] - The adjusted gross margin for fiscal 2026 is projected to be between 42% and 44% [2] Management Commentary - CEO Gary Smith emphasized the company's leadership in high-speed connectivity and its expanding role in the AI ecosystem, expressing confidence in future growth driven by demand from cloud and service provider customers [3] Market Reaction - Despite the positive earnings report, Ciena shares fell 1.8% to $238.00 in pre-market trading [3] Analyst Ratings - Following the earnings announcement, B of A Securities analyst Tal Liani maintained a Buy rating and raised the price target from $200 to $260 [5] - Rosenblatt analyst Mike Genovese also maintained a Buy rating, increasing the price target from $175 to $305 [5]