Ciena Corporation (NYSE: CIEN) saw its stock price plummet 9.28% in pre-market trading on Thursday following the release of its fiscal second-quarter 2025 financial results. The network technology company reported mixed results, with revenue beating expectations but earnings falling short of estimates.

Ciena reported quarterly revenue of $1.13 billion, surpassing the analyst consensus estimate of $1.09 billion and marking a 23.6% year-over-year increase. However, the company's adjusted earnings per share (EPS) came in at $0.42, significantly below the expected $0.52. The adjusted net income for the quarter was $60.7 million, considerably lower than the analyst estimate of $76.1 million.

The disappointing earnings results appear to be the primary driver behind the stock's pre-market plunge. While Ciena's top-line performance was strong, the substantial earnings miss has likely raised concerns among investors about the company's profitability and cost management. The adjusted gross margin declined by 250 basis points to 41.0%, which may have contributed to the earnings shortfall. Despite the revenue growth and an increase in the adjusted operating margin by 140 basis points to 8.2%, the market's negative reaction suggests that investors are focusing more on the bottom-line performance in the current economic environment.