Shares of Ribbon Communications Inc. (RBBN) surged 5.92% in after-hours trading on Wednesday following the company's first-quarter 2025 earnings call, which provided a robust outlook for the second quarter and highlighted several growth drivers across its business segments.

The telecommunications equipment provider issued strong guidance for Q2, projecting revenue in the range of $110 million to $220 million, representing a year-over-year increase of approximately 12% at the midpoint. This outlook, coupled with positive momentum in key areas, appears to have fueled investor optimism.

Ribbon's Cloud and Edge segment emerged as a particular bright spot, with management expecting approximately 20% sales growth in the second quarter compared to the previous year. The company cited continued progress with major customers like Verizon, where it is involved in a multi-year voice network modernization program. Additionally, Ribbon highlighted strong demand in the U.S. federal sector and new enterprise wins, including a Fortune 500 customer leveraging AI for contact center enhancements.

While the IP Optical Networks segment faced challenges due to the suspension of shipments to Eastern Europe, the company reported that excluding this region, the segment actually grew by 25% year-over-year in Q1. Management expressed optimism about the segment's prospects, projecting 5% to 10% sequential growth in Q2 and noting strong momentum in Asia, particularly in India and Southeast Asia.

Investors also likely responded positively to Ribbon's recent product launches and market expansion efforts. The company introduced the NPT 2714, a new metro core router, which received the Lightwave Innovation Award and is expected to strengthen Ribbon's position in providing end-to-end network solutions.