Ciena Corporation (NYSE:CIEN) reported fiscal third-quarter earnings that significantly surpassed analyst expectations, fueled by accelerating demand for high-speed connectivity solutions supporting artificial intelligence infrastructure. The networking systems provider’s shares jumped 13% in premarket trading following the announcement.
The company posted adjusted earnings per share of $0.67 for the quarter ended August 2, 2025, well above the analyst consensus of $0.53. Revenue rose to $1.22 billion, exceeding 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.
Ciena’s Optical Networking segment drove much of the growth, generating revenue of $815.5 million, or 66.9% of total revenue. The company’s outlook also surpassed 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% a year earlier, while adjusted EBITDA surged 60.4% to $158 million. The company continued its share repurchase program, buying back roughly 1 million shares for $81.8 million during the quarter.
Ciena’s strong performance mirrors the broader trend of network infrastructure providers benefiting from AI-driven demand. The company’s robust results in the Americas, which accounted for 75.7% of total revenue, underscore the significant spending on networking equipment in this key market.
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