Ciena stock jumped 22% on Thursday in what turned out to be one of its biggest one-day moves of the year.
The pop followed stronger-than-expected fiscal Q3 numbers, with demand for faster networks, especially tied to the AI build-out, giving the results a big boost.
Ciena stock is trading near its 52-week high, and the chatter on the Street is shifting to whether this run has legs or if it’s just a sugar high off the earnings beat.
What’s driving Ciena stock?
The big driver behind Ciena’s rally was its fiscal Q3 print. Revenue jumped nearly 30% year over year to $1.22 billion, beating the Street’s $1.17 billion call.
EPS came in at $0.67 versus $0.53 expected which is a 90%-plus gain from last year. The strength came from surging demand for optical gear, with cloud providers and hyperscalers pouring money into data centers to handle the flood of AI traffic.
In short, the core business is firing, and the customer list keeps getting bigger.
CEO Gary Smith pointed to “accelerated customer demand” and the network’s role as core infrastructure for AI growth and monetization as major tailwinds.
Ciena’s WaveLogic pluggable optics and routing/switching lines were standout performers, with record shipments tied to AI-related network buildouts.
Importantly, the revenue mix has shifted as non-telecom buyers now make up the majority of sales, underscoring the pivot away from legacy carriers toward cloud and large tech clients.
Ciena guided fiscal Q4 2025 revenue in the $1.24–$1.32 billion range, topping Wall Street’s $1.21 billion estimate.
Management paired that with upbeat gross margin commentary and continued buyback activity, a combination that strengthened investor confidence and added fuel to the rally.
What analysts say?
Analysts broadly endorsed Ciena’s quarterly performance and outlook.
Piper Sandler’s analysts lifted his price target to $100 from $90, pointing to the company’s favorable positioning in fast-expanding markets and steady demand for networking gear critical to AI infrastructure.
Other market watchers say Ciena’s rally isn’t just about its numbers as it is riding the bigger wave in tech infrastructure, with global demand for faster, more reliable networks surging.
The company’s focus on innovation, from new coherent tech for data centers to geographic expansion, has made it a go-to for infrastructure investors looking to play the AI and cloud transformation.
Even with the usual supply chain headaches and margin pressures, optimism is high thanks to Ciena’s leadership position and strong balance sheet.
“Product leadership, growing customer segments, and solid financials all point to a bullish outlook,” said a telecom analyst.
The stock’s jump on September 4 underscores investor confidence that Ciena can keep growing and profitable as digital infrastructure needs keep climbing.
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