Ciena Raises Annual Outlook as AI Spending Boosts Quarterly Profits

Ciena now anticipates full-year revenue between $6.37 billion and $6.47 billion, outstripping the $6.34 billion projection held by FactSet analysts. The company’s latest quarterly performance saw revenue climb 37% to $1.67 billion, comfortably clearing the $1.64 billion benchmark set by market observers.

Driving this growth, the networking platforms segment generated $1.36 billion in sales, a sharp increase from $941.4 million in the same quarter last year. Global services also saw an uptick, rising to $193.6 million. On an adjusted basis, earnings hit $2.11 per share, significantly higher than the $1.73 expected by analysts. Despite these gains, shares dipped 3.3% to $342.42 in pre-market trading on Thursday.

Chief Executive Officer Gary Smith attributed the results to Ciena's role in supplying high-speed connectivity for AI-heavy workloads. Looking toward the fourth quarter, the firm projects revenue in the range of $1.7 billion to $1.8 billion, again positioning its internal forecast above the $1.7 billion anticipated by the analyst community.