Ciena vs. Nokia: Which AI Networking Stock Is the Better Buy?

Ciena (CIEN) reported record Q2 FY2026 revenues of $1.57 billion (+40% YoY) with adjusted EPS of $1.64 (~4x prior year), raised its full-year revenue guidance to ~$6.3 billion, and expanded its backlog to $7.7 billion driven by hyperscaler AI infrastructure demand. Nokia (NOK) posted 49% YoY growth in AI and cloud net sales with €1 billion in new orders, and raised its AI addressable market growth outlook to a 27% CAGR (2025-2028) from 16%, reflecting stronger-than-expected AI-related infrastructure investments.

Why it matters: Both companies are launching next-generation optical and IP networking solutions for AI data centers, but Ciena faces supply constraints while Nokia introduced a next-gen hyperscale multi-rail solution that increases fiber density without expanding physical infrastructure.