Ciena Corporation stock research
FY2025 Q3
Ciena (CIEN) Gross Margin — Quarter Ended Aug 2, 2025
For the quarter, revenue, gross profit, and cost of revenue all increased. Gross margin improved compared to the previous quarter but weakened relative to the same quarter a year ago.
Gross margin takeaway
Quarter ended Aug 2, 2025 · FY2025 Q3
For the quarter, revenue, gross profit, and cost of revenue all increased. Gross margin improved compared to the previous quarter but weakened relative to the same quarter a year ago.
- The sequential improvement in gross margin is associated with a proportionally larger increase in revenue than in cost of revenue. In contrast, the year-over-year decline reflects a larger proportional increase in cost of revenue relative to revenue.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were higher, but gross margin weakened as cost of revenue increased by a proportionally larger amount.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.3%
Gross profit
$503.1M
Revenue
$1.2B
Cost of revenue
$716.3M
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-1.6 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 |
|---|---|---|---|---|
| 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% |
| Aug 2, 2025 | $1.2B | $503.1M | $716.3M | 41.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 3, 2025
+1.0 pts
Year-over-year change
Jul 27, 2024
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin is associated with a proportionally larger increase in revenue than in cost of revenue. In contrast, the year-over-year decline reflects a larger proportional increase in cost of revenue relative to revenue.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were higher, but gross margin weakened as cost of revenue increased by a proportionally larger amount.
Monitor the trend of cost of revenue growth relative to revenue growth in upcoming quarters.