Ciena’s stock climbed 2.5% in pre-market trading after the optical networking provider reported fiscal third-quarter results that exceeded analyst expectations.
The company posted adjusted earnings of $2.11 per share, topping the $1.72 consensus by 39 cents. Revenue reached $1.67 billion, surpassing the $1.63 billion estimate. Year-over-year revenue growth accelerated to 33.6%, reflecting robust demand for high-speed optical networking infrastructure tied to AI data center expansion.
For the fiscal fourth quarter, Ciena guided revenue to $1.75 billion. The outlook follows strong bookings from hyperscalers and cloud providers prioritizing high-capacity, low-latency connectivity solutions.
Chief Executive Officer Gary Smith executed a pre-scheduled sale of approximately 2,952 shares on September 1 under a Rule 10b5-1 trading plan. The transaction did not indicate a change in strategic direction, according to company filings.
Analysts maintained positive coverage ahead of the results. Bank of America reiterated its Buy rating in August but trimmed its price target to $550 from $660, citing supply constraints that may limit near-term revenue growth. Needham kept its Buy rating with a $600 target, highlighting AI-driven optical demand as a long-term catalyst.
U.S. equities showed mixed performance, with the S&P 500 up 0.1%, the Dow Jones Industrial Average gaining 0.2%, and the Nasdaq Composite slightly lower.
