Ciena Corporation stock research
FY2025 Q2
Ciena (CIEN) Gross Margin — Quarter Ended May 3, 2025
Revenue was flat compared to the prior quarter, while gross profit and gross margin both decreased; cost of revenue increased. Versus the same quarter a year earlier, revenue and gross profit were higher, but gross margin weakened as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended May 3, 2025 · FY2025 Q2
Revenue was flat compared to the prior quarter, while gross profit and gross margin both decreased; cost of revenue increased. Versus the same quarter a year earlier, revenue and gross profit were higher, but gross margin weakened as cost of revenue grew faster than revenue.
- The gross margin decline from the prior quarter was driven by a proportionally larger increase in cost of revenue relative to the unchanged revenue level. Cost of revenue rose while revenue held steady, directly compressing margin.
- Compared to the previous quarter, gross margin weakened, with cost of revenue higher and gross profit lower on the same revenue. Year over year, gross margin also weakened, despite higher revenue and gross profit, as cost of revenue increased at a greater rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.2%
Gross profit
$452.8M
Revenue
$1.1B
Cost of revenue
$673.0M
Quarter-over-quarter change
-3.8 pts
Year-over-year change
-2.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 27, 2024 | $942.3M | $403.9M | $538.4M | 42.9% |
| Nov 2, 2024 | $1.1B | $460.0M | $664.1M | 40.9% |
| Feb 1, 2025 | $1.1B | $471.8M | $600.4M | 44.0% |
| May 3, 2025 | $1.1B | $452.8M | $673.0M | 40.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 1, 2025
-3.8 pts
Year-over-year change
Apr 27, 2024
-2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline from the prior quarter was driven by a proportionally larger increase in cost of revenue relative to the unchanged revenue level. Cost of revenue rose while revenue held steady, directly compressing margin.
Compared to the previous quarter, gross margin weakened, with cost of revenue higher and gross profit lower on the same revenue. Year over year, gross margin also weakened, despite higher revenue and gross profit, as cost of revenue increased at a greater rate.
Monitor the trajectory of cost of revenue relative to revenue; a continued disproportionate increase would further pressure gross margin.