Ciena shares soar as AI demand drives strong earnings beat

Published 04/09/2025, 12:12

Investing.com -- Ciena Corporation reported fiscal third-quarter earnings that significantly exceeded analyst expectations, driven by accelerating demand for high-speed connectivity solutions supporting artificial intelligence infrastructure. The networking systems provider’s shares surged 13% in premarket trading following the announcement.

The company posted adjusted earnings per share of $0.67 for the quarter ended August 2, 2025, handily beating the analyst consensus of $0.53. Revenue jumped to $1.22 billion, surpassing the $1.17 billion estimate and marking a 29.4% increase from $942.3 million in the same quarter last year.

"We delivered another strong quarterly performance that reflects our leadership in high-speed connectivity and ongoing accelerated customer demand as the network becomes fundamental to the underpinning, growth, and monetization of AI," said Gary Smith, president and CEO of Ciena .

The company’s Optical Networking segment led growth with revenue of $815.5 million, representing 66.9% of total revenue. Ciena’s outlook also exceeded expectations, with fourth-quarter revenue guidance of $1.24-1.32 billion, above the consensus estimate of $1.211 billion.

Adjusted operating margin improved to 10.7% from 8.0% in the year-ago quarter, while adjusted EBITDA surged 60.4% to $158 million. The company continued its share repurchase program, buying back approximately 1 million shares for $81.8 million during the quarter.

Ciena’s performance reflects the broader trend of network infrastructure providers benefiting from AI-driven demand. The company’s strong results in the Americas region, which accounted for 75.7% of total revenue, highlight the robust spending on networking equipment in this market.

 

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