Ciena (NYSE:CIEN) reported first-quarter 2025 results, which exceeded expectations. The networking systems and software company delivered solid earnings and revenue growth, reinforcing its position in the expanding cloud and AI-driven connectivity market.
For the quarter, Ciena posted earnings per share of $0.64, significantly outpacing analyst estimates of $0.42. Revenue climbed over 3% year-over-year to $1.07 billion, slightly above the consensus forecast of $1.05 billion.
The company’s Networking Platforms segment, its largest revenue contributor, generated $821.2 million, marking a 1.7% year-over-year increase and beating the expected $800 million. Within this unit, Converged Packet Optical revenue rose 4.6% to $728 million, surpassing the forecast of $723.1 million.
While adjusted gross margin declined slightly to 44.7% from 45.7% a year earlier, it still outperformed the projected 42.1%.
Looking ahead, CEO Gary Smith expressed confidence in Ciena’s ability to capitalize on global investments in network infrastructure, particularly as demand for high-speed connectivity scales to support cloud and AI advancements. The company’s strong momentum across its customer base positions it well for continued growth in fiscal 2025 and beyond.