Ciena Corporation (NYSE:CIEN) stock gained on Thursday after the company reported fiscal third-quarter 2025 results.
The company reported a quarterly revenue growth of 29.4% year-on-year to $1.22 billion, beating the analyst consensus estimate of $1.18 billion.
The American telecom networking equipment and software services supplier reported adjusted EPS of 67 cents, beating the analyst consensus estimate of 53 cents.
Also Read: Ciena Poised For Growth On Cloud Demand, But Analysts Warn About Margin Pressure, Tariff Costs
Segments And Margins
Total Networking Platforms revenue rose 34.6% Y/Y to $941.4 million, and Total Global Services increased by 19.7% Y/Y to $160.2 million.
The adjusted gross margin declined by 180 bps to 41.9%, and the adjusted operating margin increased by 270 bps to 10.7%.
Two 10%-plus customers represented a total of 28.8% of revenue.
Ciena held $1.39 billion in cash and equivalents and generated $174.3 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 $81.8 million.
CEO Gary Smith highlighted its leadership in high-speed connectivity and rising customer demand as networks become central to AI growth and monetization. He added that with clear visibility into fiscal 2026, Ciena expects momentum to continue and will stay focused on expanding operating leverage as the business grows.
Outlook
Ciena expects fourth-quarter revenue of $1.24 billion-$1.32 billion (compared to $1.21 billion analyst consensus estimate) and an adjusted gross margin of 42%-43%.
Price Action: CIEN stock is up 17.35% at $110.74 premarket at the last check on Thursday.
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