09:00 AM EDT, 06/05/2025 (MT Newswires) -- Ciena (CIEN) reported higher fiscal second-quarter results year over year on Thursday, but the networking systems and software company's earnings fell short of Wall Street's estimates.

The company's adjusted earnings came in at $0.42 per share for the quarter ended May 3, up from $0.27 a year earlier. However, the result missed the consensus on FactSet for a larger increase to $0.52. Shares of the firm were down 2.4% in premarket activity.

Revenue climbed 24% year over year to $1.13 billion, topping the Street's view for $1.09 billion.

"With accelerating demand driven by cloud and (artificial intelligence), our performance is validating the durability of a positive network infrastructure spending environment," Chief Executive Gary Smith said in a statement. "As a result, we have strong visibility and are very confident in both our continued growth and our ability to drive additional operating leverage over time."

Sales for the networking platform segment amounted to $866.3 million, up from $676.3 million in the prior-year period. Within the division, optical networking advanced to $773.6 million from $560.2 million, while routing and switching dropped to $92.7 million from $116.1 million. The global services business saw revenue incline to $146.2 million from $134.7 million a year ago.

By geography, revenue in the Americas, which represented about 74% of Ciena's total sales during the quarter, grew to $833.8 million from $662.9 million. Asia-Pacific and Europe, the Middle East and Africa also logged gains.

The company's gross margin fell to 40.2% from 42.7% in the 2024 quarter. Total operating expenses rose to nearly $420 million from $392.6 million on an annual basis, according to the company.