The Drill Down Drill Down Earnings, Ep. 415: Ciena Q4 earnings – ($CIEN) – A Deep Dive with Cory Johnson
Dec 12, 2025
In this engaging discussion, Gary Smith, CEO of Ciena and industry leader in optical networking, dives into the company's impressive Q4 earnings and how AI-driven cloud demand is reshaping the market. He highlights a significant shift in network scaling needs among hyperscalers, stressing the urgency for increased investment in infrastructure. With record shipments of WaveLogic 6E and strong revenue growth in routing, Gary uncovers the broader implications for technology and the stock market, leaving listeners with key metrics to watch for Ciena's ongoing success.
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AI Is Powering Optical Revenue And Margins
- Ciena's Q4 showed AI-driven demand lifting optical networking revenue and margins significantly.
- Adjusted operating margins improved and free cash flow hit $326 million, signaling strong execution.
Pluggables And WaveLogic Lead Growth
- Optical networking now represents roughly two-thirds of Ciena's revenues and is accelerating.
- Coherent pluggables and WaveLogic 6E shipments hit records and drove new customer adds.
Networks Are The Missing AI Infrastructure
- CEO Gary Smith described cloud providers as under-invested in networks relative to other AI infrastructure.
- He said traffic must leave data centers to be monetized, so network scaling is essential.