Ciena Q1 Earnings: Revenue and EPS Beat Estimates, CEO Eyes AI, Cloud Network Tailwinds

Ciena Corp. CIEN reported a fiscal first-quarter 2025 revenue growth of 3.3% year-on-year to $1.07 billion, beating the analyst consensus estimate of $1.05 billion.

The American telecommunications networking equipment and software services supplier reported adjusted EPS of $0.64, beating the analyst consensus estimate of $0.41. The stock price gained after the report.

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Segments: Total Networking Platforms revenue rose by 1.7% Y/Y to $821.2 million, and Total Global Services increased by 2.5% Y/Y to $130 million.

Margins: The adjusted gross margin declined by 100 bps to 44.7%, and the adjusted operating margin decreased by 90 bps to 12.3%. Two 10%-plus customers represented a total of 26.1% of revenue.

Ciena held $1.32 billion in cash and equivalents and generated $103.7 million in operating cash flow.

During the quarter, the company bought back approximately 1.0 million shares of common stock for an aggregate price of $79.2 million.

CEO Gary Smith said that Ciena is well-positioned to benefit from the global investment in networks that scale for cloud and AI.

Ciena stock surged over 27% in the last 12 months. After the fourth-quarter report, BofA Securities, Needham, Northland Capital Markets, and Stifel rerated the stock, citing AI-driven demand growth.

Price Action: CIEN stock is up 6.82% at $70.00 premarket at the last check Tuesday.

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