Network equipment maker Ciena's Q3 revenue up 29.4% on data demand

Ciena

04/09/2025 12:09

Overview

Ciena fiscal Q3 revenue rises 29.4% yr/yr, beating analyst expectations

Adjusted net income for fiscal Q3 beats analyst estimates, driven by AI demand

Company repurchased 1 mln shares for $81.8 mln during the quarter

Outlook

Ciena expects Q4 revenue between $1.24 bln and $1.32 bln

Company anticipates Q4 adjusted gross margin of 42% to 43%

Ciena forecasts Q4 adjusted operating expenses of $390 mln to $400 mln

Result Drivers

AI DEMAND - Ciena attributes revenue growth to increased demand for high-speed connectivity driven by AI applications

NETWORKING LEADERSHIP - Company cites its leadership in networking systems as a key factor in its strong performance

EXPANDED OPERATING LEVERAGE - Ciena focused on expanding operating leverage to support continued growth, per CEO Gary Smith

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.22 bln
$1.18 bln (12 Analysts)
Q3 Adjusted EPS
$0.67
Q3 EPS
$0.35
Q3 Adjusted Net Income
Beat
$96.20 mln
$77 mln (11 Analysts)
Q3 Net Income
$50.30 mln
Q3 Cash &Investments
$1.39 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for Ciena Corp is $90.00, about 5.4% below its September 3 closing price of $94.82

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw8vFfVka

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)