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Ciena shares fall after Q3 results amid margin concerns
Ciena posted adjusted EPS of $2.11 on nearly $1.7 billion in revenue and set expectations for a backlog that could exceed $10 billion by fiscal year end.
Ciena Corp. reported Q3 results that topped analysts estimates, but the stock fell after the release as investors focused on potential margin moderation linked to tariff-related refund benefits. MarketBeat Ratings said shares dropped despite continued strong demand for AI and optical networking.
Ciena delivered adjusted earnings per share of $2.11 on almost $1.7 billion in revenue, with both measures coming in above predictions. The company also reported a record adjusted operating margin of 22.5% and EPS growth that was 215% higher than a year earlier.
The company said demand remains ahead of supply, supporting an $8.5 billion backlog that is up $800 million from last year. Ciena expects backlog to rise further, forecasting more than $10 billion by the end of the fiscal year.
MarketBeat Ratings noted that even with the strong topline and backlog, investors reacted to what it described as less-than-expected fiscal Q4 guidance and concentration risk, with two major customers accounting for 42% of quarterly revenue. The stock remained down more than 15% over the five days around the earnings release.