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HANOVER, Maryland - Ciena Corporation (NYSE:CIEN) reported mixed fiscal second quarter results on Thursday, with earnings falling short of expectations despite better-than-expected revenue growth.
The networking equipment maker’s shares dropped 5.86% in pre-market trading following the release.
For the quarter ended May 3, 2025, Ciena posted adjusted earnings of $0.42 per share, missing the analyst consensus estimate of $0.51. However, revenue rose 23.6% YoY to $1.13 billion, surpassing expectations of $1.09 billion.
"Our strong fiscal second quarter results demonstrate our continued global leadership in high-speed connectivity with growing momentum across all of our business segments," said Gary Smith, President and CEO of Ciena. He added that accelerating demand driven by cloud and AI is validating "the durability of a positive network infrastructure spending environment."
The company’s optical networking segment was a key driver, with revenue jumping 38.1% YoY to $773.6 million. However, gross margin declined to 40.2% from 42.7% a year ago.
Despite the revenue beat, investors appeared focused on the earnings miss, sending Ciena shares lower in early trading. The stock decline suggests Wall Street was looking for stronger profitability alongside the robust top-line growth.
Ciena repurchased approximately 1.2 million shares for $84.3 million during the quarter. The company ended the period with cash and investments of $1.35 billion.
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