Ciena (CIEN 8.85%) stock is rapidly moving lower in Thursday's trading. The company's share price was down 14.9% as of 2 p.m. ET. Meanwhile, the S&P 500 was up 0.5%, and the Nasdaq Composite was up 0.2%.
Before the market opened this morning, Ciena published results for the second quarter of its 2026 fiscal year -- which ended May 2. The networking technologies specialist posted sales and earnings that beat Wall Street's expectations and also raised its full-year guidance, but its stock is still losing ground.
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Ciena actually posted strong quarterly results
Ciena recorded non-GAAP (adjusted) earnings of $1.64 per share on sales of $1.57 billion in fiscal Q2. Adjusted earnings beat the average analyst forecast by $0.19 per share, and sales came in $70 million higher than the average forecast. Revenue was up roughly 38.9% year over year in the period, and adjusted earnings per share were up 290% compared to the prior-year period.
NYSE: CIEN
Key Data Points
Ciena raised its full-year guidance, but that wasn't enough
Along with its fiscal Q2 report, Ciena raised its midpoint full-year sales target to roughly $6.3 billion and its adjusted gross margin for the year to between 44.5% and 45%. Previously, the company had guided for sales between $5.9 billion and $6.3 billion and an adjusted gross margin between 43.5% and 44.5%.
While the company posted encouraging fiscal Q2 results and forward guidance, the company's share price is falling today due to the market having a negative reaction to Broadcom's recent quarterly results. Broadcom also posted a strong performance, but it wasn't enough for the market -- and some investors are wondering whether the artificial intelligence trade is losing steam.
