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Investing.com -- Ciena Corporation reported mixed fiscal second-quarter results on Thursday, with earnings falling short of analyst expectations despite better-than-anticipated revenue. The networking systems company’s shares dropped 5.2% following the announcement.
For the quarter ended May 3, 2025, Ciena (NYSE:CIEN) posted adjusted earnings per share of $0.42, missing the analyst consensus of $0.51. However, revenue came in at $1.13 billion, surpassing estimates of $1.09 billion and representing a 23.6% increase YoY from $910.8 million.
The company’s revenue growth was primarily driven by its Optical Networking segment, which saw sales jump to $773.6 million from $560.2 million in the same quarter last year. However, Ciena’s gross margin declined to 41% on a non-GAAP basis, down from 43.5% in the prior-year period.
CEO Gary Smith commented on the results, stating, "Our strong fiscal second quarter results demonstrate our continued global leadership in high-speed connectivity with growing momentum across all of our business segments."
Despite the earnings miss, Ciena reported improved cash flow from operations, which totaled $156.9 million for the quarter. The company also continued its share repurchase program, buying back approximately 1.2 million shares for $84.3 million.
Looking ahead, Ciena expressed confidence in its growth prospects, citing accelerating demand driven by cloud and AI technologies.