Ciena Swings to Profit, Sets Growth Target

Ciena Corporation reported fiscal Q2 2025 revenue rising 23.6% year-over-year to about $1.13 billion, surpassing analyst expectations, but missed earnings estimates with adjusted EPS of $0.42 versus $0.52 expected. The Networking Platforms segment led growth with a 28% revenue increase, while the Routing and Switching segment declined by 20.1%. Ciena swung to a net profit of $9 million, reversing a loss from the prior year. Adjusted gross margin fell to 41%, but operating margin improved, with management citing strong demand from cloud and AI sectors. The company set a 14% revenue growth target for fiscal 2025. Ciena's stock dropped nearly 5% on the news as investors focused on earnings outlook and guidance.