Ciena (CIEN) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and FY25 revenue of $1.35B and $4.77B, up 20% and 19% year-over-year, driven by strong demand from cloud and service provider customers, especially for AI-related high-speed connectivity solutions.

• Q4 EPS was $0.91, up 69% year-over-year; full-year adjusted EPS reached $2.64, up 45% from FY24.

• Ended FY25 with $1.4B in cash and investments, generating $665M in free cash flow and repurchasing ~$330M in shares.

• Non-telco customers represented 55% of Q4 revenue, with direct cloud provider revenue up 49% year-over-year.

• Significant wins in managed optical fiber networks (MOFEN), expansion in new geographies, and major hyperscaler deals contributed to strong order growth and backlog.

Financial highlights

• FY25 revenue: $4.77B, up from $4.02B in FY24; Q4 revenue: $1.35B, up from $1.12B in Q4 FY24.

• Adjusted gross margin for FY25 was 42.7%, down from 43.6% in FY24; Q4 adjusted gross margin was 43.4%.

• Adjusted operating margin for FY25 was 11.2%, up from 9.7% in FY24; Q4 adjusted operating margin was 13.2%.

• Adjusted EBITDA for FY25 was $637M, up from $481M in FY24.

• Free cash flow for FY25 was $665M after $140M in capex.

Outlook and guidance

• FY26 revenue guidance: $5.7B to $6.1B, nearly 24% growth at midpoint; Q1 FY26 revenue guidance: $1.35B to $1.43B.

• FY26 adjusted gross margin expected at 43% ±1 point; operating margin at 17% ±1 point.

• Q1 FY26 adjusted gross margin expected between 43% and 44%; operating margin between 15.5% and 16.5%.

• Capex for FY26 projected at $250M to $275M, reflecting investments to support demand and new product development.

• Guidance assumes stable macro environment and continued demand for bandwidth.