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CIEN vs HPE
Ciena (CIEN) vs Hewlett Packard Enterprise (HPE) Earnings Recap: Record Revenues Amid AI Networking Surge
Key Takeaways
- Ciena reported record Q1 fiscal 2026 revenue of $1.43 billion, up 33% YoY, with adjusted EPS of $1.35, up 111% YoY.
- HPE delivered Q1 fiscal 2026 revenue of $9.3 billion, up 18% YoY, and record non-GAAP EPS of $0.65, surpassing guidance.
- Both companies highlighted AI-driven demand: Ciena in optical networking, HPE in networking up 152% YoY to $2.7 billion.
- Ciena raised FY2026 revenue guidance to $5.9–$6.3 billion; HPE lifted non-GAAP EPS outlook to $2.30–$2.50.
- Strong cash flows supported capital returns: Ciena repurchased $81 million in shares; HPE returned $348 million.
- Market caps stand at $45 billion for CIEN and $29 billion for HPE, reflecting growth positioning.
Earnings Context and Why This Comparison Matters
Both CIEN and HPE operate in the high-speed networking space critical for AI infrastructure, data centers, and cloud connectivity. Ciena focuses on optical transport and packet networking, while HPE provides broader enterprise servers, storage, and networking solutions, including recent Juniper integration. Their recent fiscal Q1 2026 earnings, released March 5 and March 9 respectively, underscore surging demand for AI-related bandwidth and compute. Comparing them reveals competitive dynamics in AI optics versus integrated systems, growth trajectories, and profitability amid supply challenges.
Hewlett Packard Enterprise Focus
Hewlett Packard Enterprise reported fiscal Q1 2026 results for the quarter ended January 31, 2026, with net revenue of $9.3 billion, up 18% year-over-year. Non-GAAP diluted EPS reached a record $0.65, up from $0.49, beating guidance of $0.57–$0.61. GAAP EPS was $0.31. Networking shone with $2.7 billion in revenue, surging 151.5% YoY, driven by data center (up 383%), campus/branch (up 42%), and routing. Cloud & AI revenue was $6.3 billion, down slightly, but margins improved to 10.2%. Gross margins expanded to 36.6% non-GAAP. Cash from operations hit $1.2 billion. Guidance includes Q2 revenue of $9.6–$10.0 billion and FY2026 non-GAAP EPS of $2.30–$2.50, with networking growth raised to 68–73%.
Ciena Context
Ciena's fiscal Q1 2026, ended January 31, 2026, delivered record revenue of $1.43 billion, up 33% from $1.07 billion YoY, driven by optical networking demand from cloud providers and AI data centers. Adjusted EPS more than doubled to $1.35 from $0.64, with GAAP EPS at $1.03 versus $0.31. Adjusted gross margin hit 44.7%, and operating margin reached 17.9%. Networking platforms revenue soared 40% to $1.15 billion. Cash from operations was $228 million. Q2 guidance calls for $1.5 billion ± $50 million in revenue; FY2026 outlook raised to $5.9–$6.3 billion (28% growth midpoint), with adjusted gross margins of 43.5–44.5%.
Head-to-Head Earnings and Market Comparison
Both beat EPS estimates and raised guidance, fueled by AI: Ciena's optical focus yielded higher revenue growth (33% vs. 18%) and EPS surge (111% vs. 33%), with superior margins (44.7% adjusted gross vs. HPE's 36.6%). HPE's scale ($9.3B revenue) and networking boom provide diversification, but Cloud & AI dipped. Risks include supply chain volatility for both; Ciena faces hyperscaler concentration, HPE integration costs from Juniper. Sentiment favors Ciena's AI optics purity (P/E 204), while HPE offers stability (P/E ~27). CIEN rebounded post-earnings; HPE rose on raised outlook.
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Tickeron AI Verdict
Tickeron AI favors CIEN with 65% probability over the next quarter, citing superior earnings growth, AI optics momentum, and raised guidance despite valuation premium. HPE's scale and networking surge offer stability, but Ciena's trend strength edges it out.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CIEN is a Hold and HPE is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CIEN’s FA Score shows that 2 FA rating(s) are green whileHPE’s FA Score has 3 green FA rating(s).
- CIEN’s FA Score: 2 green, 3 red.
- HPE’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CIEN’s TA Score shows that 4 TA indicator(s) are bullish while HPE’s TA Score has 7 bullish TA indicator(s).
- CIEN’s TA Score: 4 bullish, 4 bearish.
- HPE’s TA Score: 7 bullish, 4 bearish.
Price Growth
CIEN (@Telecommunications Equipment) experienced а +2.30% price change this week, while HPE (@Telecommunications Equipment) price change was +6.23% for the same time period.
The average weekly price growth across all stocks in the @Telecommunications Equipment industry was +5.72%. For the same industry, the average monthly price growth was +11.74%, and the average quarterly price growth was +40.97%.
Reported Earning Dates
CIEN is expected to report earnings on Jun 04, 2026.
HPE is expected to report earnings on Jun 02, 2026.
Industries' Descriptions
@Telecommunications Equipment (+5.72% weekly)The Telecommunications Equipment industry produces voice and data communications equipment, which includes fiber optic delivery products, digital signal processors, high-speed voice, data and video delivery. Additionally, satellite systems, global positioning systems, wireless data systems, personal communications equipment, telephone handsets and payload equipment for satellites also fall into this category. Apple Inc., QUALCOMM Incorporated and Nokia are major global players in this segment.
| CIEN | HPE | CIEN / HPE | |
| Capitalization | 71.7B | 35.1B | 204% |
| EBITDA | 509M | 4.73B | 11% |
| Gain YTD | 116.971 | 10.782 | 1,085% |
| P/E Ratio | 323.20 | 27.45 | 1,178% |
| Revenue | 5.12B | 35.7B | 14% |
| Total Cash | 1.3B | 4.84B | 27% |
| Total Debt | 1.59B | 21.6B | 7% |
CIEN | HPE | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 90 | 32 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 92 Overvalued | 11 Undervalued | |
PROFIT vs RISK RATING 1..100 | 2 | 43 | |
SMR RATING 1..100 | 76 | 90 | |
PRICE GROWTH RATING 1..100 | 34 | 6 | |
P/E GROWTH RATING 1..100 | 7 | 9 | |
SEASONALITY SCORE 1..100 | n/a | 10 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
HPE's Valuation (11) in the Computer Processing Hardware industry is significantly better than the same rating for CIEN (92) in the Telecommunications Equipment industry. This means that HPE’s stock grew significantly faster than CIEN’s over the last 12 months.
CIEN's Profit vs Risk Rating (2) in the Telecommunications Equipment industry is somewhat better than the same rating for HPE (43) in the Computer Processing Hardware industry. This means that CIEN’s stock grew somewhat faster than HPE’s over the last 12 months.
CIEN's SMR Rating (76) in the Telecommunications Equipment industry is in the same range as HPE (90) in the Computer Processing Hardware industry. This means that CIEN’s stock grew similarly to HPE’s over the last 12 months.
HPE's Price Growth Rating (6) in the Computer Processing Hardware industry is in the same range as CIEN (34) in the Telecommunications Equipment industry. This means that HPE’s stock grew similarly to CIEN’s over the last 12 months.
CIEN's P/E Growth Rating (7) in the Telecommunications Equipment industry is in the same range as HPE (9) in the Computer Processing Hardware industry. This means that CIEN’s stock grew similarly to HPE’s over the last 12 months.
| CIEN | HPE | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 76% | 3 days ago 60% |
| Stochastic ODDS (%) | 3 days ago 69% | 3 days ago 65% |
| Momentum ODDS (%) | 4 days ago 60% | 3 days ago 63% |
| MACD ODDS (%) | 3 days ago 72% | 3 days ago 67% |
| TrendWeek ODDS (%) | 3 days ago 77% | 3 days ago 68% |
| TrendMonth ODDS (%) | 3 days ago 77% | 3 days ago 69% |
| Advances ODDS (%) | 3 days ago 79% | 3 days ago 71% |
| Declines ODDS (%) | 6 days ago 65% | 6 days ago 62% |
| BollingerBands ODDS (%) | 3 days ago 69% | 3 days ago 67% |
| Aroon ODDS (%) | 3 days ago 85% | 3 days ago 73% |
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CIEN and
Correlation & Price change
A.I.dvisor indicates that over the last year, CIEN has been loosely correlated with LITE. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is some statistical probability that if CIEN jumps, then LITE could also see price increases.
| Ticker / NAME | Correlation To CIEN | 1D Price Change % | ||
|---|---|---|---|---|
| CIEN | 100% | +2.48% | ||
| LITE - CIEN | 66% Loosely correlated | +0.32% | ||
| AAOI - CIEN | 55% Loosely correlated | +1.33% | ||
| VIAV - CIEN | 51% Loosely correlated | +7.23% | ||
| UI - CIEN | 45% Loosely correlated | +4.37% | ||
| HLIT - CIEN | 44% Loosely correlated | +2.74% | ||
More | ||||
HPE and
Correlation & Price change
A.I.dvisor indicates that over the last year, HPE has been loosely correlated with HLIT. These tickers have moved in lockstep 45% of the time. This A.I.-generated data suggests there is some statistical probability that if HPE jumps, then HLIT could also see price increases.
| Ticker / NAME | Correlation To HPE | 1D Price Change % | ||
|---|---|---|---|---|
| HPE | 100% | +2.12% | ||
| HLIT - HPE | 45% Loosely correlated | +2.74% | ||
| CSCO - HPE | 45% Loosely correlated | +2.07% | ||
| ITRN - HPE | 42% Loosely correlated | +1.91% | ||
| EXTR - HPE | 42% Loosely correlated | +2.80% | ||
| VIAV - HPE | 41% Loosely correlated | +7.23% | ||
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