Technology High Yield Weekly: Weekly Update

Research evidence excerpt

Technology High Yield Weekly: Weekly Update

News Summary

Technology sector performance for the week ended June 5, 2026

• The ICE BofA High Yield Technology Index posted a return of 0.4% (Thursday to

Thursday) and currently offers a YTW of 8.1%; this compares to a weekly return of

0.0% and a YTW of 7.1% for the ICE BofA High Yield Master Index.

Ciena – FY2Q26 results summary

• Ciena reported FY2Q26 (April-end) results with revenue of $1.57 billion, which

was above consensus of $1.51 billion and $1.45 billion - $1.55 billion guidance and

up 10% sequentially and 40% year over year despite ongoing supply chain

constraints, which the company said limited its ability to meet unprecedented

demand. More specifically, on revenue by key segment, 1) networking platform

revenue of $1.27 billion increased 11% sequentially and 47% year over year with

growth in optical networking from RLS and Waveserver product demand and in

routing & switching due to the ramp of data center out-of-band management

(DCOM) solution; 2) platform software and services revenue of $94 million was

flat sequentially and up 10% year over year; 3) Blue Planet automation software

and services revenue of $23 million was up 15% sequentially but down 16% year

over year, and 4) global services revenue of $179 million increased 9%

sequentially and 23% year over year. Adj. EBITDA of $342 million was above

consensus of $312 million and $288 million - $332 million guidance and up 19%

sequentially and 193% year over year as adj. gross margin of 44.9% beat 43.5% -

44.5% guidance and increased 20bp sequentially and 390bp year over year, which

the company attributed to engineering cost reductions, better mix, and pricing

optimization.

• FY2Q26 free cash flow was $219 million before $174 million of share