08:59 AM EDT, 09/04/2025 (MT Newswires) -- Ciena (CIEN) reported better-than-expected fiscal third-quarter results on Thursday, while the networking systems and software company issued an upbeat revenue outlook for the ongoing three-month period.

Adjusted earnings came in at $0.67 per share for the quarter ended Aug. 2, up from $0.35 the year before, surpassing the FactSet-polled consensus of $0.53. Revenue increased to $1.22 billion from $942.3 million, topping the Street's view for $1.18 billion. The stock rose 15% in the most recent premarket activity.

"We delivered another strong quarterly performance that reflects our leadership in high-speed connectivity and ongoing accelerated customer demand as the network becomes fundamental to the underpinning, growth, and monetization of (artificial intelligence)," Chief Executive Gary Smith said in a statement. "We are confident in the continued momentum of our business and remain focused on further expanding our operating leverage as we continue to grow."

For the current quarter, Ciena anticipates revenue to come in between $1.24 billion and $1.32 billion, while the Street is looking for $1.21 billion. Adjusted gross margin is pegged at 42% to 43%.

Sales for the networking platform segment amounted to $941.4 million in the third quarter, up from $699.5 million in the prior-year period. Within the division, optical networking advanced to $815.5 million from $606.8 million, while routing and switching rose to $125.9 million from $92.7 million.

The global services business saw revenue incline to $160.2 million from $133.8 million a year ago.

By geography, revenue in the Americas, which represented about 76% of Ciena's total sales during the quarter, grew to $923.6 million from $718.6 million. Asia-Pacific and Europe, the Middle East and Africa also logged gains.

The company's adjusted gross margin fell to 41.9% from 43.7% in the 2024 quarter. Total operating expenses rose to $429.5 million from $377.2 million last year, according to Ciena.