Ciena Corporation (NYSE: CIEN) Q2 2025 Earnings Call | 6/5/2025

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Ciena Corporation (NYSE: CIEN) reported Q2 2025 results on June 5, 2025, delivering revenue of $1.13 billion—a 23.6% increase year-over-year and above the $1.09 billion consensus—driven by surging demand from cloud providers and AI infrastructure investments. Direct cloud provider revenue hit a record $400 million, up 85% year-over-year and representing 38% of total revenue, as three of Ciena’s top five customers this quarter were cloud hyperscalers. Non-telco customers accounted for 54% of total revenue, reflecting successful diversification beyond traditional telecommunications. Despite the strong top-line performance, adjusted earnings per share (EPS) came in at $0.42, missing expectations by $0.09, while GAAP EPS was $0.06. The earnings miss was attributed to higher operating expenses—mainly incentive compensation tied to record order performance—and ongoing margin pressures from tariffs and product mix. Adjusted gross margin declined to 41% from 43.5% a year ago, while adjusted operating margin improved to 8.2%. Net income was $9.0 million (GAAP), compared to a net loss of $16.8 million in Q2 2024. Adjusted net income rose to $60.7 million from $39.4 million a year ago. Operationally, Ciena generated $157 million in cash from operations, repurchased 1.2 million shares for $84 million, and ended the quarter with $1.35 billion in cash and investments. Inventory turns and days sales outstanding both improved, reflecting better working capital management. Looking ahead, management reaffirmed its outlook for 14% revenue growth in fiscal 2025, with gross margins expected at the low end of the 42–44% range due to ongoing tariff costs (estimated $10 million impact per quarter). CEO Gary Smith highlighted accelerating demand from cloud and AI customers, stating, “We have strong visibility and are very confident in both our continued growth and our ability to drive additional operating leverage over time.” The company remains focused on innovation, particularly with its WaveLogic optical technology, and expects mid-teens operating margins by 2027. About Inside Ticker: For more expert analysis and real-time updates on Ciena Corporation (NYSE: CIEN) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Ciena #CIEN #EarningsCall #Q22025 #Cloud #AI #OpticalNetworking #StockMarket #Investing #InsideTicker