{
  "id": 5916160,
  "title": "NetApp Raised Guidance as Ciena’s Revenue Jumped 37%. Are AI Networks and Storage Finally Converting Into Earnings?",
  "url": "https://urgent.news/2026/09/04/netapp-raised-guidance-as-cienas-revenue-jumped-37-are-ai-networks",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-04T22:46:52.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/technology/ai/articles/netapp-raised-guidance-ciena-revenue-224652965.html"
  },
  "original_language": "en",
  "account": "NetApp and Ciena reported strong Q1 results on consecutive days, indicating that AI networks and storage may finally be translating into earnings. NetApp's fiscal Q1 revenue increased 30% to $2.03 billion, with all-flash array sales surging 47% to $1.3 billion. Management raised full-year guidance, while Ciena's Q3 revenue climbed 37% to $1.67 billion, with adjusted earnings per share rising 215% to $2.11. NetApp's business is focused on storing AI data, while Ciena facilitates data movement between facilities. NetApp's public-cloud revenue grew 28% to $206 million, and its DataPelago acquisition adds data-processing capability closer to the storage layer. Hedge-fund participation in Ciena rose from 73 funds at the end of Q1 to 81 in Q2, while NetApp saw 47 funds at the end of June. However, the durability of this growth is questionable, as storage demand is cyclical, comparisons can be difficult, and acquisitions can complicate the organic picture. Additionally, customers may optimize existing capacity after a spending surge. Both companies' results are heavily influenced by a few large buildouts, leaving them exposed to customer concentration risks. While NetApp's free cash flow fell 35% year-over-year to $401 million, raising guidance does not fully address the cash-conversion question. Investors should closely monitor orders, backlog conversion, gross margins, and guidance revisions to determine if this growth is turning into a sustainable earnings stream rather than a temporary capacity rush.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}